Government partners with industry leaders to drive UK rail growth

The Rail Supply Group (RSG) has now launched its strategy to build growth in the UK rail industry and support exports.

During an event at the Advanced Manufacturing Training Centre (AMTC) in Coventry hosted by Business Secretary Sajid Javid, Transport Secretary Patrick McLoughlin and Managing Director of Alstom UK & Ireland Terence Watson, the RSG – the sector council representing the rail supply chain in the UK – presented its detailed plan to improve productivity and secure the future of the UK railway.

The strategy, which supports suppliers of all sizes by improving the conditions across the supply chain, sets out the RSG’s plan to implement its Productivity Pledge.

This will deliver a strategic approach to procurement and planning; a plan to drive UK technologies; a coherent skills plan to attract talent and increase productivity; deliver a comprehensive package of support for SMEs and a co-ordinated approach to increase exports and inward investment.

Sajid Javid, Secretary of State for Business, Innovation and Skills and Co-Chair of the Rail Supply Group, said: “The UK was a rail industry pioneer and this strategy will ensure we are global leaders for years to come.

“A strong rail sector supply chain is essential for our future productivity and the commitment to take on 20,000 new apprentices will provide opportunities for our young people to start successful careers in this vital sector.”

Patrick McLoughlin, Secretary of State for Transport and Co-Chair of the Rail Supply Group added: “We are funding the biggest rail modernisation programme since Victorian times which is creating opportunities for UK suppliers across the country. We support the rail industry’s plans to strengthen our supply chain so British companies can win more work here and abroad.

“Rail Supply Group’s focus on developing a skilled rail workforce is very welcome. Our priority is to attract the nation’s talent to the industry and to equip them with the skills to deliver on our commitment to build a world class transport infrastructure system.”

The RSG brings together private sector leaders from large and small businesses across the rail industry with government. The rail sector generates £3.4bn for the UK economy each year and its supply chain directly employs over 124,000 people.

The RSG’s sector strategy plans to improve market conditions for the rail supply sector by securing greater visibility of planned investments with government and improving procurement approaches, and accelerate the uptake of innovation in the supply chain by promoting collaborations between clients and suppliers and improving the UK’s capacity for testing and research.

It will also invest in people and skills, including developing a network of training centres, an industry talent pool and incentivising training through revised procurement approaches, and grow exports and inward investment by working closely with government to improve access to foreign markets, clients and investors, as well as supporting smaller suppliers to export.

RSG has committed to working with the Rail Delivery Group, which brings together Network Rail and passenger and freight operating companies, to coordinate progress in the rail industry as a whole.

Paul Plummer, Chief Executive of the Rail Delivery Group and the Association of Train Operating Companies (ATOC), said: “The UK rail supply chain is key to our economy beyond the critical contribution it makes directly to Britain’s railway. We are therefore pleased to be working with RSG both to help its work in support of the UK rail supply chain and to improve supply chain input to RDG work on the future of our railway.”

Rail journeys have doubled in the past 20 years to around 3.2 billion a year and significant future growth in freight and passenger traffic is expected, enhanced by major infrastructure works such as HS2, Crossrail and London Underground upgrades.

Simon Kirby, Chief Executive of High Speed Two (HS2) Limited, concluded: “The Rail Supply Group’s strategy augurs well for the industry’s future in the UK. Its aims of driving productivity; attracting and retaining the best talent; and pushing the boundaries of technological innovation is exactly the approach HS2 Ltd is looking for to deliver the new north south high speed rail network.”

The RSG’s strategy will support the sector to take advantage of positive trends in the global rail market, with global growth expected to be 2.7% a year, reaching £128bn by 2019. This comes as government has committed to spend over £38bn to maintain and improve the UK rail network by 2019 in the biggest modernisation programme for over a century.

RSG will review its strategy every three years and will work with a full range of groups to make sure it remains relevant for a growing industry.