Can Britain compete again? How BICS could transform UK manufacturing. 

Author: Richard Kingsbury, Managing Director

There has never been any doubt about Britain’s ability to manufacture.  

For generations, UK manufacturing has been the backbone of British economy. From traditional engineering to building modern CNC machines, British industry has a long history of innovation to compete on a global stage.  

Yet despite that heritage, many manufacturers are facing a difficult reality. 

Rising energy costs, global competition and ongoing economic uncertainty continue to place pressure on businesses of all sizes. Companies are being forced to think carefully about investment decisions and where future growth will come from. 

The question is no longer how manufacturers can expand, but how they can remain competitive. 

That’s why the British Industrial Competitiveness Scheme (BICS) is generating such interest.  

While headlines focus on the benefits of having lower electricity costs, ultimately the scheme has the potential to restore confidence in British manufacturing.  

Manufacturing at a crossroads

The competitiveness challenge becomes particularly clear when we compare the UK to other industrial nations.  

Industrial electricity prices in the UK are estimated to sit between 22p and 25p per kWh. Compare that to France and Germany, where prices are closer to 14p to 16p per kWh, or North America, where some manufacturers benefit from costs as low as 5p to 6p per kWh, the scale of the challenge becomes obvious. 

Every pound spent managing higher operating costs is a pound that cannot be invested elsewhere. 

That might mean delaying the purchase of a new CNC machine or putting investments into a skilled workforce on hold. When margins are tight, decisions that could improve productivity and competitiveness are pushed further down the priority list.  

For manufacturers, this isn’t just a cost issue. It’s a confidence issue.  

Why BICS matters

Launching in April 2027, BICS will reduce electricity costs by up to £40 per megawatt hour for eligible businesses.  

On paper, that’s a cost-saving measure.  

In reality, it could be a catalyst for growth.  

When manufacturers have greater certainty over operational costs, they can focus more on planning for the future. The conversation shifts from survival to opportunity.  

What opportunities could BICS unlock?

For manufacturers that have spent years managing rising costs, the scheme could create breathing room to focus on the investments that drive long-term competitiveness.  

This could mean investing in workforce development and giving employees the skills needed to work with automated processes. Having access to skilled workers will become an even greater competitive advantage with manufacturers increasingly adopting advanced CNC machine technologies. 

For others, it could mean upgrading equipment and introducing automation to take on more complex projects. By accelerating innovation, manufacturers can improve productivity while strengthening their international position. 

When cost pressures ease, business are better positioned to focus on future growth. Greater certainty often becomes a catalyst for investment. 

Rebuilding confidence across British industry

While no single initiative can solve every challenge facing the sector, reducing one of the largest operational pressures is an important step in the right direction.  

British manufacturers have repeatedly demonstrated their resilience, adaptability and technical expertise. What many have lacked in recent years is the certainty needed to make bold investment decisions.  

BICS has the potential to help change that.  

By creating a more competitive environment, the scheme could encourage businesses to invest in people, technology and production capacity. 

Looking ahead

British manufacturing has never lacked ambition.  

The challenge has been creating the conditions that allow that ambition to flourish. BICS represents an opportunity to do exactly that, helping manufacturers move beyond managing costs and towards building a stronger future.  

Applications may not yet be open, but manufacturers should already be thinking about how they could maximise the opportunity.  

Whether that’s investing in skills, upgrading CNC machine capabilities or accelerating automation projects, businesses that plan ahead will be best placed to take advantage when the scheme launches.