The Tony Blair Institute has called on the UK government to strengthen the country’s manufacturing sector to better capitalize on the growing artificial intelligence (AI) market. The think tank recommends increasing manufacturing’s share of the UK’s gross value added (GVA) from the current 8 percent to 10 percent by 2031, a level not seen in two decades. It also suggests setting a longer-term goal to raise the sector’s contribution to as much as 14 percent.
The institute emphasizes that as technologies such as AI and robotics advance, the availability of physical components and manufacturing capabilities will become a critical limiting factor. According to the report, countries that both integrate AI technologies and maintain robust manufacturing bases are likely to derive the greatest economic benefit.
This call comes amid rising global competition in frontier technologies, highlighting the need for industrial capacity alongside digital innovation. The think tank’s proposal aims to ensure the UK does not fall behind in producing the essential hardware that underpins AI advancements, positioning manufacturing as a strategic priority for the nation’s economic future.
