The UK Government’s new Modern Industrial Strategy, announced on Monday 23 June, outlines a ten-year plan to boost investment, create 1.1 million skilled jobs and make Britain the best place in the world to do business. It marks a renewed push to align government and industry across high-growth sectors such as Advanced Manufacturing, Digital Technologies, Clean Energy and Life Sciences. For us at the Advanced Services Group, this strategy could offer a timely and powerful platform to advance servitization across UK industry.
While the strategy does not explicitly reference servitization, its focus on innovation, automation and digitisation creates the right conditions for manufacturers to transition toward service-led business models. Servitization — the move from selling products to delivering integrated product-service solutions — is a proven pathway to enhanced growth, customer value and long-term resilience.
The early results of our recent survey of over 700 UK businesses reveal that service-led strategies can have a significant positive impact on growth, sustainability and competitiveness. These businesses are not simply improving what they offer, they are redefining how they create value for customers in a modern, outcomes-focused economy.
Government support through the strategy, including investment support and cost reduction, provides an important opportunity. With strategic investment and the right policy framework, businesses can accelerate the adoption of advanced services and drive a new phase of competitive advantage.
However, real impact will depend on how effectively this strategy is implemented and how boldly businesses act. Servitization is not just a tactical option: it is a strategic necessity for those seeking to remain competitive in a rapidly changing market.
The Modern Industrial Strategy may not mention servitization by name, but for those of us already working in this space, it offers a vital opportunity to scale, innovate and lead. UK industry is ready — and this is the moment to act.