Specialist Manufacturing Sector: Regional Economies

I beg to move,

That this House has considered the contribution of the specialist manufacturing sector to regional economies.

It is an honour to serve under your chairmanship, Mrs Harris, and a privilege to open this debate on the contribution of the specialist manufacturing sector to regional economies. The number of colleagues who have joined us this early on a Wednesday morning is a mark of just how important this issue is to so many constituencies.

Manufacturing is the backbone of our economy. This country is unique. We do not mass-produce rubbish; we make specialist things that only our foundries and factories can produce. Decent manufacturing brings good jobs but also economic power to our country. Manufacturing contributed £217 billion in output to the economy last year—nearly 10% of GDP—and supported 2.6 million jobs.

Calder Valley has manufacturing in its history. The story started with wool, but has developed into chemicals and specialist manufacturing. As new businesses opened in old mills, we also focused on particular industries. Calder Valley has long been known for its engineering. We are home to what many call valve valley, a cluster of more than 20 firms that design, build and service valves that are used across the world. In the valve community, which I mainly discovered after becoming an MP, Brighouse and Elland are central hubs. These companies are not household names, but they are businesses that keep industry moving, from energy to water to pharmaceuticals. They employ local people, train apprentices and anchor our economy in towns that too often feel overlooked.

When I visit manufacturing and engineering firms in Calder Valley, I see the same thing again and again: highly skilled workers who are proud of the worldwide reach of their products, from 60% of water in New York city travelling through valves made in Brighouse to oil rigs in the North sea being made safer because of the expertise of workers in a West Yorkshire factory. I see innovation, with companies investing in new technology and tapping into various sectors such as defence, renewables and nuclear. I see resilience, because these businesses have survived downturns and global shocks, yet they continue to provide good jobs in Calder Valley.

But we cannot ignore the fact that the numbers working in manufacturing are falling. As of 2024, 15% of jobs in Calder Valley are in the manufacturing sector, compared with a national average of 7%, but that share has been declining. In 2007, just under a quarter of jobs in Calder Valley were in manufacturing. From the financial crisis to Brexit and the Tories’ disastrous deal, the past couple of decades have ripped the heart out of our manufacturing industry.

We will hear a lot in the next few weeks about growth and so forth. It will come as a relief to many Members that I am not in the Treasury, so rather than talking about statistics, I will share what local manufacturers tell me. They tell me that their order book has never been so bad, because of the impact of tariffs. The lack of stability means companies are not making long-term decisions that would see them step up. That is why we need a strong domestic manufacturing sector, but it is also why we need to be strategic in our support for the industry and how we spend our money on the infrastructure that we need to rebuild.

If we are serious about Labour’s promise that two thirds of young people will go to university or achieve a high-level qualification, this is exactly the kind of work we need to encourage. We need to make sure that those qualifications are linked to opportunities in advanced manufacturing, engineering and design. That means working with local authorities and businesses to understand the needs of industry in each region.

I congratulate the hon. Member on securing this debate. On the point about training and upskilling, does he agree that we need to do more to develop the skills and competitiveness of our manufacturing base, and that that needs to spread beyond the large cities so that smaller towns and their residents can benefit?

The hon. Gentleman is absolutely correct. The point about smaller towns is so important, because as well as creating brilliant jobs in the smaller economy where they will make a difference, they give a sense of place and value to what we produce. People are proud of what their town produces, whether it is valves or textiles, and they think of those things as defining their town. That commitment is something that only a small town can offer, and it really makes a difference.

Businesses in this country are ready to grow, but they need support with skills, infrastructure and investment. They need to know that their order book is guaranteed for the long term. The Government have made really positive noises about encouraging skilled apprenticeships; that is welcome, but apprenticeships work only if the companies can afford to hire and train young people. We need to ensure that small and medium-sized manufacturers, which are the lifeblood of Calder Valley and other small towns, have the support that they need to take on apprenticeships without being too financially stretched.

In September, I visited the Brighouse-based training charity West Yorkshire Manufacturing Services, as part of National Manufacturing Day. It showcased a range of firms in Calder Valley to school students. I also met Stuart Billingham, who is set to become the managing director of KOSO Kent Introl next year. The company, founded in Brighouse, employs about 150 people and exports specialist valves across the world. Stuart started at 16 on a youth training scheme and has worked his way up the company to become its managing director. His journey is a brilliant example of how skills and apprenticeships can lead to as rewarding, lucrative and challenging a career, with as massive a global impact, as we are often told that universities can. It shows that those careers have progression and responsibility. I want this Government to produce 1,000 Stuarts, albeit that some of his close friends might not want that many Stuarts.

I praise my hon. Friend for securing this important debate. On apprenticeships, I wonder whether he would care to comment on the excellent work of the Catapult centres, which are Government-funded and which work collectively between business and academia. In my constituency of Rugby, at Ansty Park, we have the Manufacturing Technology Centre, which has its own training facility. It has already trained 1,200 apprentices. That can only be a good thing for our region, and particularly for our young people who want to get on and get jobs.

Yes, 1,200 apprenticeships is 1,200 decent jobs and 1,200 families who have pride that their son or daughter will make a real difference and make products that make it around the world. That is why this matters.

Only 14% of apprenticeships that started in the past academic year were in engineering and manufacturing, however. The Institution of Engineering and Technology has reported that engineering faces one of the largest skills shortfalls in the economy, with more than 46,000 vacancies in the sector. Similarly, the welding industry needs 35,000 more people. That is the key to growth. It represents a real opportunity to support young people into secure, well-paid work. Without it, our manufacturing sector will be in trouble.

I agree with everything that the hon. Gentleman is saying, but may I encourage him to go one step upstream and look at some of the wider policy context? If we are to regrow our manufacturing base, as we absolutely need to, we have to accept that it will be about future technologies, not just replacing what we had in the past. In my constituency, the development of tidal energy offers a supply chain of 80% UK product, which would then be exportable. If we could capture that, we would have something special—but for that to happen, we need a better policy framework to come out of the Department for Energy Security and Net Zero.

We have to be really bold. We need to look at our future-focused industries and at what we specialise in. The right hon. Gentleman talks about tidal energy, but we will not be able to produce that without a load of specialist valves. I want to ensure that they are built in Calder Valley and go throughout the country. That is what this debate is about: we need to plan and think, but we also need to look at what we do well.

The imbalance between small and large manufacturing companies is accentuated by the fact that larger companies often secure Government contracts, particularly in defence. Not only does that provide them with guaranteed revenue, but it often allows them to poach skilled staff from smaller firms that cannot compete with the salaries and the security that those contracts bring. Yorkshire and the Humber received the least defence spending per person, despite the fact that across our region we have a manufacturing sector that is eager to grow and develop.

The hon. Gentleman is making an excellent speech. As he knows, the south-west has a brilliant, large defence-related manufacturing sector. Needles and Pins Aerospace is a small, women-led business based in Somerton that provides precision textile engineering for aviation and defence. It should be entitled to the same opportunities to compete on a level playing field for the larger contracts. Does he agree that if the Government are prioritising value and security, they should offer equal commercial opportunities to UK businesses and supply chains in respect of defence and security-related manufacturing contracts?

I absolutely agree. The Defence Office for Small Business Growth—I believe it will open in January, but the Minister will know better than me—will be a great opportunity to grow businesses such as Needles and Pins Aerospace in the hon. Lady’s constituency and the many businesses in my constituency that want to get into the defence industry. She is right that the south-east does very well out of defence. In fact, the defence industry supports 85,000 direct jobs in the south of England, but just 3,750 in Yorkshire and the Humber.

As part of the Government’s mission to make defence an engine for growth, there should be a concerted effort to spread its benefits across the regions and our small towns, as the hon. Member for East Londonderry (Mr Campbell) said. We will grow this economy only if the Government interact with industry, including in Calder Valley and West Yorkshire, in a way that encourages competition rather than dominance. Smaller manufacturers are equally vital and are a sign of a balanced and resilient economy. They must be supported if we are serious about building the balanced and resilient industrial base that we really need.

Valve manufacturing is a reminder that regional economies thrive when we back specialist sectors. It is not about chasing the latest fad; it is about recognising and building on our strengths. In Calder Valley, that means supporting our manufacturers with a skills pipeline, and with the apprenticeships and investment that they need to grow. We can use the power of the public purse to do that, but—I will be honest—we have failed to do that over multiple years and multiple Governments. The new nuclear power station at Hinkley Point has more than 100,000 valves, but they are all made in China. The only company in Calder Valley that has benefited is the company that fixes faulty valves, because the quality is not as good as that of British-made valves. If we expect other countries to use our high-quality valves in manufacturing, our Government must lead by example.

Order. I remind Members that they need to bob if they wish to speak in the debate. I will impose an informal time limit of five minutes to allow all Members to get in.

Thank you for calling me early, Mrs Harris; you are very kind. I am sure hon. Members are wondering why. I thank the hon. Member for Calder Valley (Josh Fenton-Glynn) for securing today’s debate. In his short year and a half in the House, he has shown himself to be assiduous on behalf of his constituents. He works hard, with a key focus on the subjects he brings to the House, both in the main Chamber and here. Well done to him.

Our manufacturing sector is crucial to the UK-wide economy. We must not forget the unique build-up of this country. I always say that we are better together, and there is no Scots Nats person here to tell me otherwise—not that that is a bad thing, but anyway. Whether it be Scotland, Wales, Northern Ireland or England, we can do it better, with a significant contribution to the manufacturing industry.

Library research highlights that in 2023, Northern Ireland added £2.2 billion gross value added in manufacturing economic output. In 2024, around 900 direct jobs were supported by the defence industry. Defence plays a crucial role in Northern Ireland, but it does not get its full percentage of defence contracts. I gently put that point to the Minister to get a helpful answer. The defence sector should get more contracts, although there have been lots of commitments.

With great respect, Northern Ireland people—men and women—have proven themselves as leaders in their contribution to the sector. The best is yet to come, with more young people becoming interested in all aspects of manufacturing and engineering. There is a keen interest in science, technology, engineering and maths study and employment in Northern Ireland, especially from young people and from women who have leading roles in manufacture. We are doing and seeing good things happening; we see equality and opportunity.

This is a good news story. Northern Ireland is home to major companies such as Thales and Bombardier. Bombardier at one stage had two major factories in Newtownards, hiring hundreds of people from the local area, showing our skill in the design and manufacture of composites and polymers. I usually visit Thales at least once a year with my right hon. Friend the Member for Belfast East (Gavin Robinson), who told me that the majority of the workforce live in my constituency of Strangford, so it is obviously to my advantage to be there.

It is an honour to serve under your chairship, Mrs Harris. I thank my hon. Friend the Member for Calder Valley (Josh Fenton-Glynn) for securing this debate and for his call for the use of British parts in British infrastructure.

The debate is incredibly pertinent to my constituency of Stoke-on-Trent South and to neighbouring areas across north Staffordshire, and unsurprisingly my colleagues from Stoke-on-Trent are here with me today. Ours is a post-industrial city and, typically for the coalfield and other regions across the north and midlands, we have lagged behind others in wage growth and investment. Although we rightly take pride in our industrial past and heritage, we must also look with ambition to our future. North Staffordshire is the home of the British ceramics industry, and we are incredibly lucky to have manufacturing specialisms in advanced ceramics, which form part of the supply chains for critical industries and the IS-8—the eight sectors identified in the industrial strategy.

Without ceramics, we cannot have steel, glass or mobile phones. The industrial strategy rightly recognised ceramics as a foundational industry, and I am delighted that the national materials innovation strategy, championed by the Henry Royce Institute, recognises the importance of ceramics as critical materials. Ceramic materials are used in specialist components for high-tech industries, and I will name just a few. They are used in implants and prosthetics in the healthcare sector and as jet engine coatings for civil and defence aerospace. They are used in fuel cells for small modular reactors and in defence applications including rocket components, antennas, surveillance and armour. In fact, they are the only class of materials capable of enabling hypersonic weapons for defence.

North Staffordshire’s advanced ceramics industry is therefore a cornerstone of the UK defence capability. We have a well-established cluster for advanced ceramics in our region, with established companies and research consultancies. That includes Mantec, Ross Ceramics and Lucideon. Lastly, north Staffordshire is incredibly lucky to have AMRICC—the Applied Materials Research, Innovation and Commercialisation Company, which is the Government-funded centre of excellence for advanced ceramics.

It is a pleasure to serve under your chairmanship, Mrs Harris. I welcome today’s debate. Plymouth and the surrounding area boast some of the finest examples of British advanced manufacturing. Babcock refits the Royal Navy’s frigates, maintains our nuclear deterrent and assembles the Supacat Jackal armoured vehicles at His Majesty’s Naval Base Devonport. Today, Helsing is opening a resilience factory in my constituency, manufacturing autonomous underwater gliders to protect critical infrastructure. The date was supposed to be last week, so I went to visit. Unfortunately, I am here for this debate today rather than there for the official opening today, but it is an exciting opportunity for my constituency of South West Devon and Plymouth as a whole. The company was attracted to the city because of its easy access to deep water for testing and sea trials of marine autonomy. For similar reasons, Thales at Turnchapel Wharf is delivering the first end-to-end autonomous maritime mine-hunting system to the Royal Navy.

Plymouth’s industry is not just defence companies equipping the men and women in uniform with world-class kit. Mars Wrigley, a company I visited last month, manufactures its chewing gum in Plymouth. Alderman Tooling, another advanced manufacturer in Plympton in my constituency, is a metal fabrication company that produces a range of products, including metal bed feet, bus handrails and displays for museums and fashion retailers. Plessey Semiconductors, Demon Pressure Washers and Princess Yachts are all significant to South West Devon, and many other businesses manufacture in neighbouring Plymouth constituencies.

It should therefore come as no surprise that Plymouth wears the crown as the south-west’s pre-eminent manufacturing city, ranking ninth across the UK. This is within the south-west region, which has the third highest proportion of advanced manufacturing jobs in the country, employing 86,500 people. Indeed, the Plymouth Manufacturers’ Group represents over 50 local businesses right across the city, employing almost 5,500 people.

It is a pleasure to serve under your chairmanship, Mrs Harris. I congratulate my hon. Friend the Member for Calder Valley (Josh Fenton-Glynn) on securing the debate. We do not talk nearly enough about manufacturing in this place—I am sure the Minister would agree with that, given his personal commitment and understanding of the sector from his previous role.

I very much enjoyed the speech by the hon. Member for South West Devon (Rebecca Smith). I am sure that parts made in my constituency, at Meighs & Westleys, Goodwin or Mantec, make their way down to her local businesses, but I say gently to her that scaremongering about the Employment Rights Bill is a disincentive to industry and a restriction on our economy. The Bill is not yet anywhere near implementation.