Landscape transformation

The UK manufacturing landscape is undergoing a profound transformation.

With over 152,000 production businesses—of which 136,000 are in manufacturing—more than 99% are SMEs, highlighting the sector’s diversity and reach. However, challenges persist. The Employer Skills Survey 2022 revealed a 7.5% skills gap density in manufacturing, one of the highest across all sectors. There are currently 49,000 vacancies, with 42% classified as skill-shortage vacancies. Meanwhile, the Office for Budget Responsibility (OBR) estimates that achieving net zero by 2050 will total £803 billion.

HVM Catapult is supporting the transformation of the UK’s manufacturing landscape by addressing systemic challenges in skills, SME support, supply chains, access to finance, and regional innovation. Our mission is to ensure that every part of the UK benefits from industrial transformation, with tailored support that reflects local strengths and needs.

Our priority areas

We are delivering landscape transformation through four strategic workstreams:

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SME support 

We are building capacity across our network to engage with SMEs, recognising their varied needs and ability to absorb research and innovation. Our goal is to support over 3,000 SMEs annually through events, demonstrators, and tailored innovation support.

Find out more about how we support SME’s

Skills and workforce development 

Skills are a key enabler of industrial transformation. We are forecasting future technology trends and their impact on jobs and responding with innovative training models. Since 2011, 5,235 apprentices have enrolled across HVM Catapult centres, with 2,299 currently active across levels 2–7.

Find out more about workforce and skills development

Supply chains and access to finance 

We are mapping critical supply networks and linking them to investment opportunities. Many manufacturing businesses struggle to access scale-up funding between ÂŁ5 million and ÂŁ50 million. Our programmes are designed to overcome these barriers and strengthen UK competitiveness.

Place-based innovation 

We recognise that different regions have unique needs. Through strategic partnerships with local ecosystems, we tailor our support to regional strengths. We are developing Regional Gateways to our core sites, connecting national and local innovation strategies, and enabling sector-first approaches that align with community ambitions.

Find out more about place-based innovation