Specialist Manufacturing Sector: Regional Economies

Sarah Dyke Excerpts

Wednesday 19th November 2025 Westminster Hall

[Josh Fenton-Glynn]

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.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

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?

[Josh Fenton-Glynn]

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.

This is about the pride that people feel when they know that something they made in their town is used in projects around the world. It is about the contribution that specialist manufacturing makes to identity as well as GDP. It is about ensuring that places such as Calder Valley are not left behind, but are recognised as central to Britain’s industrial future.

I will finish by making a few points directly to the Minister. In Calder Valley, we know how vital apprenticeships are, yet only 14% of apprenticeships last year were in engineering and manufacturing; what will the Government do to ensure that new training opportunities match the skills shortages that we face, such as those in welding and advanced engineering? Our small and medium-sized manufacturers are the lifeblood of towns such as Brighouse; how will Government support for apprenticeships and investment reach those firms rather than being skewed towards the largest players? Defence strategic procurement could be a real engine for growth in places such as Calder Valley; will the Minister set out how contracts will be used to back British industry, particularly in specialist sectors such as valve manufacturing and precision engineering?