RAEng report urges ‘place-based approach’ for UK policy

Published in partnership with Metro Dynamics, Engineering Economy & Place explores engineering’s impact at a granular level, collating data from local authorities to help construct a nationwide picture. It found that engineering represents 32 per cent of total national economic output and 26 per cent of jobs across the UK, generating £646bn direct Gross Value Added annually to the wider UK economy.

While the report found a high concentration of value in the South East, several locations across the Midlands, North West and Scotland were also shown to be performing above average, with ‘high-value hidden gems’ also found in South Derbyshire, North Warwickshire and Ribble Valley.

“Engineering is at the core of the UK’s industrial DNA – it is no wonder that we have a proud history of innovation,” said RAEng president, Professor Sir Jim McDonald FREng FRSE.

“This snapshot of the current engineering landscape shows that engineers are drivers of economic opportunity – from R&D to delivering products and services that generate jobs, drive our economy and create value for society. The UK simply cannot become a science and technology superpower without first becoming an engineering superpower. Without a place-based approach to engineering policy, the UK risks maintaining the status quo that currently hinders the potential of its economy – with regional imbalance, city centres disconnected from surrounding areas and untapped capacity for innovation and production.”

Key recommendations from the report include:

• Connections between city-centre R&D activity and engineering in surrounding city regions and towns
• Targeted support to maximise the potential of areas with highly specialised industrial concentration
• Ensure that new technologies provide pathways to create new jobs and enhance employment opportunities in the face of increased automation

As part of a drive to boost its own regional footprint, RAEng is establishing a UK-wide network of Enterprise Hubs to help grow its devolved administration and regional support. The first of these regional Hubs opened in Belfast in 2020, followed by Swansea in 2022, with Scotland set to follow in 2023.

“The report highlights that additional support for enterprise infrastructure across the country is essential for the benefits of engineering innovation to be shared more evenly,” Prof McDonald continued. “Our ambition is to expand our network of Enterprise Hubs to support engineering-led growth and opportunity in local communities and increase the number of engineering startups in those areas.

“We hope that this new framework for analysing engineering’s contribution to our broader economy will be a useful tool to inform future policy and decision-making for local and national success.”