Climate change is not just the biggest challenge that we face. It could also turn out to be the biggest economic opportunity.
We are already seeing this in areas such as offshore wind power, energy efficiency improvements, and high-capacity batteries. Industries which did not exist a decade ago are growing rapidly, building on the world-class university and science base which is a key national asset.
As we transition to a low-carbon economy, many economic and industrial opportunities are emerging across the UK that will lead to the emergence of new businesses, sectors, and jobs. These new industries will have specific requirements when it comes to high-quality plastic components – requirements that ENL Group has the skills, experience, and expertise to meet.
The way that businesses operate is changing too – as consumers demand more in terms of environmental sustainability. This is creating a race as businesses start to compete to offer new, low-carbon technologies, goods and services. Not only does this position those businesses for growth, it also is creating new clusters and supply chains that are creating value across the economy and providing the opportunity to position the UK as a global leader in the net-zero transition.
The Key Role of Research and Development
At ENL Group, we work across a number of sectors that are committed to investing in new technologies. We have seen both the automotive and aviation industries undergoing radical transformation as they explore new forms of power such as electricity and hydrogen power.
However, developing these technologies demands significant investment from both government and the private sector. This is an area where the UK has not always been able to match its international competitors. In the UK R&D expenditure is currently 1.7% of GDP. This lags behind an OECD average of 2.5% of GDP and even further behind the level of R&D investment of key competitors such as the USA and Germany. If we are to achieve our net-zero target then government will have to find ways to help government unlock additional investment to support the development of new green technologies.
Financing the Shift to New Technologies
One of the key assets that the nation has compared to other countries are the financial systems and infrastructure to lead the world in helping to nurture and grow new technologies.
This is seeing very significant flows of Venture Capital flowing into startups and SMEs that are specialising in developing low carbon technologies. This is a worldwide phenomenon – over the past 5 years, global climate tech Venture investment has increased from $6.6 billion to $32.3 billion in 2021.
UK climate tech companies are at the forefront of this rapid growth. In particular, the City of London has now emerged as one of the most important global centre’s for raising investment for new climate technologies. That financing is increasingly a mainstream element of business as usual for investors – for instance, major pension funds are increasingly directing the assets under management towards the growth opportunities created by the fight against climate change.
When it comes to developing globally leading technologies access to finance could be a significant asset that gives the UK a key competitive advantage over other nations. These are technologies that nations across the world will ultimately require. If the UK develops them first, then that could be great news for our future economy.
Impact on UK Manufacturing
For a company like ENL Group there will be significant opportunities created by the emergence of the UK as a key global leader in climate friendly technologies.
We have already experienced this with customers involved in the automotive sector requiring housings for the components in electric vehicles. Additionally, as other forms of transport look for ways to reduce energy consumption high quality plastic components will have an important role to play as a lower-weight, more flexible option that traditional materials. Similarly, as hydrogen emerges as an important alternative energy source, increased demand for specialist pipes, couplings and storage will all create opportunities for UK based manufacturers.
This is why the benefits of new climate tech sectors will potentially extend beyond individual companies and across the wider supply chain. This is particularly important as many companies look to onshore their supply chains both to reduce emissions and to increase business resilience.
As a company, ENL has always been focused not just on what our customers need now, but also on what they may need in the future. This is what led to our evolution as a company from wooden to plastic components as technology changed and new solutions were required.
We know, like any business, that progress does not stop. New technologies and new industries will have needs that UK-based manufacturers will be well-placed to meet. As we head towards net zero the discussion needs to move beyond the “costs” of that transition and instead focus on the economic benefits achieving net zero will potentially bring.
About ENL Group
ENL Group is based in Portsmouth, UK and Veľké Kostoľany, Slovakia. Established in 1958, we have been servicing UK-based and European companies for decades. Working with a secure supply chain, ENL provides quality components for quality-driven customers – with full certification for all of our products and quality checking at every stage.
Operating 24/7, we design, manufacture and deliver critical components for our customers across the UK and Europe.
Contact Us for more information about ENL and how we can help your business.
