The UK government has unveiled a substantial £120 million support package designed to bolster the nation's ceramics industry. This significant funding aims to enhance energy efficiency, foster long-term sustainability, and assist manufacturers with operational expenditures.
Rob Flello, chief executive of the industry body Ceramics UK, expressed his satisfaction, stating he was "delighted" with the announcement. He emphasized that the funding serves as a crucial acknowledgment of the UK ceramics industry's importance, not only as a key enabler for other sectors but also for its essential role in daily life. According to Flello, Ceramics UK has been tasked with collaborating with civil servants to develop and implement the operational framework for this new scheme.
"The money would support the industry to ensure it was ready for decades to come," Flello said, underscoring the objective of preserving manufacturers for future generations. He further commented, "It's really about making sure this money is spent wisely and well, and achieves the maximum potential it can." Flello acknowledged that while the support might arrive too late for some firms already facing difficulties, it represented a hard-won achievement following extensive lobbying efforts.
Business Secretary Peter Kyle remarked on the timing of the announcement, stating, "At a time of global uncertainty it's never been more important to ensure Britain's resilience and back the industries our country depends on." He assured that the funding would "support thousands of jobs and put businesses on a secure footing for the long term."
Chancellor Rachel Reeves highlighted the broader economic significance, noting, "The chemicals and ceramics industries underpin our economic resilience and support skilled jobs across the UK." This perspective was reinforced by a report commissioned by Stoke-on-Trent City Council, which suggested that the industry in north Staffordshire possesses the potential to thrive as a "highly dynamic" sector with appropriate support. The report identified ceramics as a vital component for critical industries including aerospace, defense, clean energy, and electronics.
Industry Challenges and Resilience
The ceramics sector has recently contended with considerable challenges. Several companies in Stoke-on-Trent have faced collapse amidst escalating energy costs and international competition. The report from Stoke-on-Trent City Council, titled "Ceramics Sector Assessment in North Staffordshire," specifically warned of the vulnerability of ceramics firms to "gas price shocks," exacerbated by the ongoing conflict in Ukraine. The report noted that gas accounts for 90% of energy consumption in the ceramics industry, rendering previously announced government support for electricity bills of limited benefit.
These pressures have contributed to a decline in the number of ceramics firms in north Staffordshire, falling from 137 in 2018 to 123 in 2024, according to the council's report. The report also indicated that supply chain turnover within these sectors had increased by 35% between 2018 and 2024. Despite these adversities, the research, compiled by Kada and Ortus Economic Research, concluded that net company worth had seen an increase since 2018 in specialized areas such as advanced and technical ceramics, sanitaryware, and refractory products.
