Investors could slash energy use by a third with £2.56bn injection

The bank claims that if all manufacturers worked to be as energy efficient as current sector leaders, this could create an industry worth £160bn to the wider economy by 2025.

Economic modelling from the financial group shows that greater investment in energy efficiency and clean technologies could result in significantly higher levels of profitability and value added by the UK manufacturing over the medium and longer term.

According to Barclays, the increased investment represents a significant opportunity for UK manufacturing to enhance its international competitiveness through better export performance and protection against low-cost imports.

The Barclays Corporate Banking Powering On report also examines current attitudes of UK manufacturers towards energy supply and management and models how manufacturers could reduce their energy demand.

A survey of 525 managers in the UK manufacturing industry conducted late last year reveals UK manufacturers consider energy resilience as ‘critical’ to the sectors maintaining international competition.

The research also demonstrates that availability, reliability and energy costs are among high concerns for businesses, with 27 per cent of manufacturers surveyed suggesting that energy supply is a higher concern to businesses compared to beginning of 2016.

Barclays head of manufacturing, transport and logistics Mike Rigby believes that energy resilience and costs are vital considerations for UK manufacturers and are a critical element of our manufacturing sector’s ability to compete internationally.

“In recent months, attention has focused on the future of energy supply but we need to look at all aspects of energy. By considering energy management on the demand side in intensive sectors such as manufacturing, we can ensure the UK remains competitive,” he said.