Specialist Manufacturing Sector: Regional Economies

Allison Gardner Excerpts

Wednesday 19th November 2025 Westminster Hall

[Dr Allison Gardner (Stoke-on-Trent South) (Lab)]

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.

The global ceramics market was valued at £200 billion in 2024 and is projected to reach £358 billion by 2035. Advanced ceramics account for 54% of that market, with the UK holding a share worth £4.5 billion, so the opportunity for growth here is clear. I must stress, however, that advanced ceramics are only part of the advanced manufacturing specialisms in our part of the country. The west midlands has the UK’s second highest number of advanced manufacturing jobs and contributes 6.7% of total GVA. In my constituency, the engineering manufacturer Goodwin produces materials for submarines, aeroplanes and advanced surveillance systems.

Key to the potential for growth is the A50/A500 growth corridor, the nexus of which is in Sideway in my constituency. It is the key connector between Cheshire, Staffordshire, Derbyshire and Nottinghamshire. Along the A50/A500 growth corridor are world-renowned advanced manufacturing companies, including Bentley, JCB and Toyota. That growth corridor connects more than 1 million people and 500,000 jobs in clean energy, hydrogen and technology. If we extend to Nottingham, it connects three university city regions, and if we use the East Midlands rail line, it will take us all the way to Lincolnshire.

Midlands Connect has estimated that the A50/A500 project, along with the building of more houses, will generate more than £12 billion in GVA, could create up to 39,000 new jobs—an unbelievable number—by 2045, and has a projected annual growth rate of 1.6% until 2070. He will tell me off for doing this, but I am going to quote the chief executive of Stoke-on-Trent city council. He said to me that it “could deliver a greater bang for its buck than the northern powerhouse.”

The project requires £3 million to develop the business case. I therefore ask my hon. Friend the Minister to support the project and development of the business case. The economic benefits from the project would link manufacturers in north Staffordshire to the east midlands, with strong implications for devolution and economic growth across the regions. I believe that it might be worth considering a north midlands strategic authority to unlock those benefits further, as the corridor is a critical supply chain and distribution artery for businesses to the east and west and, indeed, the north and south, because it connects the M1 and M6.

There is an incredible amount of specialist manufacturing in our regional economy, particularly in the advanced ceramics sector. With the right investment in innovation, infrastructure and skills, the north midlands advanced manufacturing corridor could become a leading growth hub for our regional economy and the UK economy more broadly.

--- Later in debate ---

[Chris McDonald]

The hon. Gentleman is right that UK Export Finance’s plan is to encourage an additional 1,000 businesses, but that is not the limit of our ambition with regard to SME exporting. It is important that we increase not only the number of SMEs that are exporting but, as I said earlier, the competitiveness of SMEs, so that they can increase the percentage of their exports. The work we are doing on UK procurement will also help with that by giving a baseload of orders to UK businesses that will then increase their competitiveness and enable them to win more export orders.

[Dr Gardner]

In 1882, a ceramics company in my constituency exported 50% of its products to Europe and globally. Since Brexit its ability to export to Europe has dramatically reduced. It can export to the US in two days, but it can take months to get its exports to Italy. What can the Minister do to help us improve our trade to Europe?

[Chris McDonald]

This comes back exactly to my point about regulation. Through our work with the EU, we are endeavouring to ensure that we have maximum access to the market. Where regulatory burdens are restricting export activity, I am keen to hear about them. I encourage businesses to come forward and support the questionnaire we have released on business regulation.

The industrial strategy places an emphasis on growth and frontier industries, but it also gives a clear focus to city regions and clusters with the highest potential to support our growth sectors. It is important to us that we grow the manufacturing sector across the country and also businesses, small and large, in supply chains, as well as well-known household names. I reaffirm that the Government have an ongoing commitment to UK manufacturing. We can too easily think about manufacturing as being about household names and consumer products, but we have heard a lot today about manufacturing businesses in the supply chain that employ many more people and make a significant economic contribution, over and above the consumer products we can buy.

As I know myself, manufacturing is about local businesses that have an impact locally on communities and prosperity, as well as on the growth of the country. The Government have a high ambition for our manufacturing industry. By 2035, we want to be the best place in the world to start, grow and invest in advanced manufacturing. We want to double the annual business investment entering the UK manufacturing sector from £21 billion a year to nearly £40 billion a year. That requires bold action, and in many of the measures I have set out we are looking to do more. The steps we have taken in setting out the industrial strategy and various sector plans this year, and the reforms we are making to skills, finance, innovation and regulation, will have a positive and lasting impact, not only for valve manufacturers in Calder Valley but for other specialist manufacturers around the UK.