Overview
The UK Government has launched its long-term industrial strategy, supported by an Advanced Manufacturing Sector Plan. Together, they set a ten-year direction for supporting innovation, growing exports, reducing costs and investing in the manufacturing base. While construction equipment manufacturing is not named explicitly, many of the plan’s commitments apply to the sector — provided it is included in delivery.
Skills and training
The strategy commits to new Skills and Technical Colleges focused on engineering and manufacturing. There is support for modular and hybrid training models. However, no immediate reform has been announced to simplify the Apprenticeship Levy or the Immigration Skills Charge. The CEA will continue to press for greater flexibility and sector-specific funding.
Energy costs
A significant breakthrough is the extension of energy price relief for manufacturers. The British Industry Supercharger and British Industrial Competitiveness Scheme aim to reduce UK industrial electricity costs in line with competitors like Germany. A consultation will determine eligibility, and the CEA will engage to ensure construction equipment manufacturers are included.
Access to finance
The British Business Bank will receive £7 billion in new funding to support SMEs with growth, innovation and scale-up. New tax incentives have also been introduced to improve capital investment conditions. Members who struggle to access finance or scale should explore whether these new routes apply to them.
Regional manufacturing clusters
The strategy will deliver regional Advanced Manufacturing Clusters with central support. These aim to grow supply chains and create skilled jobs outside traditional centres. Selection of cluster locations is not yet finalised. CEA is working to ensure construction equipment hubs are considered in cluster development.
What’s missing
Construction equipment is not mentioned explicitly in either the industrial strategy or the sector plan, despite being a high-value, export-driven, net-zero-aligned manufacturing subsector. There is also little detail on how smaller OEMs and suppliers will be brought into delivery mechanisms, particularly on skills and energy.
Next steps
The CEA is engaging directly with government to:
- Secure construction equipment’s recognition within the advanced manufacturing framework
- Push for inclusion in energy relief and cluster schemes
- Support a more flexible skills and levy model for the sector
We will update members on developments, consultations, and any opportunities for input or funding access.
Comment from the CEA
Viki Bell, CEO of the CEA (Construction Equipment Association), said:
“We welcome the launch of the UK’s modern industrial strategy — and in particular, the long-term thinking behind it. Plant and equipment manufacturers require stability, infrastructure, and skilled personnel to thrive, and this strategy demonstrates a clear understanding of industry needs.
The commitment to reduce electricity costs is a potential game-changer for manufacturing. Commercial energy prices in the UK have placed firms at a real disadvantage for too long, so the proposed reductions — through both the Competitiveness Scheme and Supercharger support — could offer significant relief. As the Government consults on eligibility, we will be looking to ensure construction equipment manufacturers are included.
In terms of skills, we’re pleased to see investment in engineering, the establishment of technical colleges, and support for modular and hybrid training models. However, the details on levy reform remain light. We know from our members that simplifying the system and making it more flexible is crucial, particularly for smaller OEMs and the hire sector supply chain.
It’s also encouraging to see serious funding now targeted toward helping British firms scale up. The additional £7 billion for the British Business Bank, alongside support for Advanced Manufacturing clusters, shows an ambition to unlock capital and support regional growth. That matters for our sector, especially when bringing new safety systems, cleaner machines, and digital solutions to market.
While construction equipment manufacturing wasn’t named explicitly in this strategy, we hope to see it fully embraced within the Advanced Manufacturing sector plan, where it clearly belongs. Our members stand ready to support infrastructure, house building, and net zero goals. This strategy is a positive step, and we look forward to working with Government to ensure our sector is part of its delivery.”
10-Year UK Infrastructure Strategy
The UK Government has announced a £725 billion plan to transform the nation’s infrastructure over the next decade. The newly published 10-Year Infrastructure Strategy aims to drive economic growth, raise living standards, and address long-term underinvestment in key sectors including transport, energy, housing, education, health, and digital connectivity.
The strategy provides long-term funding certainty, allowing the construction industry to invest in skills, technology, and capacity. One of the core features is a digital Infrastructure Pipeline, launching in July 2025. This online tool will offer detailed data on major projects — including timelines, funding allocations, and procurement routes — giving businesses greater visibility to align resources and plan investments.
Key elements of the strategy include:
- £19.8 billion for transmission network upgrades
- Major transport projects such as Transpennine Route Upgrade, East West Rail, and the Lower Thames Crossing
- Clean power targets by 2030 supported by investment in offshore wind, solar, nuclear and hydrogen
- £119 billion for schools, hospitals, and prisons over five years
The strategy highlights the importance of modern methods of construction, digital technologies such as digital twins, and nature-based solutions. Legislative reforms are on the way via a new Planning and Infrastructure Bill to simplify approvals and accelerate delivery. Procurement reform consultations are also underway to enhance social value, support SMEs, and increase sector-wide sustainability.
The government also plans to encourage private investment through PPPs, the RAB model, and the National Wealth Fund. These are designed to create public-private opportunities and support delivery at scale.
