1、MANUFACTURINGOUTLOOKQUARTER 3 2025With support from:and Manufacturing NIIn partnership withSpecial Themed Edition:The Evolution of Inflationary Pressures Since 2022Manufacturing Outlook Quarter 1 2025Manufacturing Outlook Quarter 3 20252ForewordScottish microbiologist Alexander Flemings discovery of
2、 penicillin was not an overnight success.By 1941,it had been tested on just five patients two of whom died as impurities in production made it unsafe for wider use.Thirteen years after Fleming first isolated the mould Penicillium rubens,the breakthrough had achieved practically nothing.Progress rare
3、ly comes from a single“eureka”moment.It depends on the hard,unglamorous work of turning ideas into usable products through countless incremental improvements by engineers,scientists,and manufacturers.In modern Britain,government policy has often funded early invention but then stepped back,leaving o
4、ther economies to commercialise the technology and reap the rewards.We invent,but we dont implement.The consequences of this approach are visible across the wider economy.Britain is falling behind in adopting and applying the AI and digital technologies that will define the future economy.Slow uptak
5、e has left productivity flat,output sluggish,and the country poorer than it should be.After almost 20 years of stagnation,debt-to-GDP is approaching 100%,with annual interest payments now exceeding 100bn.The Chancellor will thus deliver Labours first full Budget this Autumn with limited fiscal room
6、for manoeuvre,forcing hard choices that could shape the economy for a generation.This is where the Industrial Strategy comes in.Rather than scattershot subsidies or“picking winners,”the government is aiming to direct the states resources to clear obstacles that impede private investment.That means s