Manufacturing recovery plan: consultation analysis – March 2021

2 Supply chains and competitiveness

The actions set out in the Recovery Plan under Supply chains and competitiveness are being progressed and were endorsed in feedback received. Within this, a small number of respondents provided specific commentary on wider supply chain support options. We welcome these and a brief summary of the key elements of that input is set out below.

Competitiveness - Some respondents noted that action will be needed to increase the supply chain competitiveness and capability in Scotland, with a view to strengthening conditions for investment. There is a general openness to work collaboratively on measures that would respond to investors' needs. Comments included a need to ensure the system of support was tuned to future requirements. Additionally, policies need to be carefully assessed, ensuring minimal impact on the competitive capability of Scottish businesses.

Sectoral Opportunities – A number of sectors are now emerging for which Scotland could be well placed to take a leading role and ensure significant supply chains develop to support them. Some of those suggested by respondents included:

• Offshore wind including floating offshore wind
• Concrete sub-structure technology to take advantage of Scotland's established concrete supply chain and its skills
• Green bus manufacturing and low emission vehicles
• Oil and gas decommissioning

Support initiatives enabling the scaling-up of innovative practices, new systems and cross sector approaches are required.

Reshoring – Many responses highlighted the importance of developing Scotland's domestic supply chains by enhancing Scottish manufacturing capacity and capability. Localised supply chains, within the current landscape of the pandemic and the challenges of the EU exit, have proven to bring a certain level of resilience that is vital to sector recovery. The need for circular supply chains through remanufacturing or reuse of products and materials was repeatedly mentioned.

Technology – Comments included the need to support businesses to enhance their supply chain mapping capabilities through the use of technology. Better forecasting, planning and connectivity across supply chains can create efficiencies and increase productivity. Additionally, there can be environmental benefit to the use of technology as a way to identify emissions or other environmental impacts. These should be promoted as an incentive to create more domestic supply chains.