Wales was once the engine room of the world. From the coalfields of the Rhondda to the ironworks of Merthyr Tydfil and the copper smelters of Swansea - our nation powered the first Industrial Revolution. We exported iron rails to Russia and South America, and Cardiff became the world’s busiest coal-exporting port. This legacy of industrial excellence is something we should be proud of - and something we can build upon.

The UK Government’s newly launched Industrial Strategy offers a timely and ambitious framework to do just that. With targeted investment and a renewed focus on regional growth, this strategy has the potential to unlock Wales’ economic potential and position us at the forefront of the UK’s growth ambitions.

The UK Government has made some significant commitments as part of the 10-year plan. These include more than £4 billion for advanced manufacturing and £700 million for clean energy supply chains, with a goal to double investment by 2035. There is more than £2 billion for digital and frontier technologies, including AI and semiconductors along with £380 million to boost the creative industries - film, TV, gaming, and music.

These investments are not abstract figures. They are UK-wide, but they translate into real opportunities for Welsh businesses - from Airbus in Broughton to the semiconductor cluster in South Wales, now bolstered by a new doctoral training centre at Swansea University.

The Defence Growth Deal cluster and the British Business Bank’s new champion for the Cardiff Capital Region are further signs of momentum. The strategy also includes a £30 million Local Innovation Partnerships Fund in Wales to work with the Welsh Government and Innovate UK to grow innovation. There is a £600 million Strategic Sites Accelerator that Wales stands to benefit from, and enhanced access to finance through the National Wealth Fund and Development Bank of Wales. These initiatives will help SMEs across Wales access the long-term capital they need to scale, innovate, and compete globally.

But while the outlook is promising, we must remain grounded in the realities that we face. Wales continues to rank low in productivity and wage levels compared to other UK regions. Our economy is still heavily reliant on sectors such as tourism, agriculture, and retail. These industries are vital to our communities and must not be overlooked.

Tourism alone contributes nearly £5 billion annually, and retail remains the UK’s largest private-sector employer. We also have a unique opportunity to lead the energy transition. With our natural resources and coastal geography, Wales is ideally placed to develop large-scale floating offshore wind.

The recent Crown Estate announcement selecting Equinor and Gwynt Glas as preferred bidders for Round 5 projects is a major step forward. We must also accelerate progress on test and demonstration projects like Llŷr 1 and Llŷr 2 in the Celtic Sea, which will help commercialise cutting-edge technologies.

However, none of this will be possible without addressing the skills gap. A recent report by The Open University revealed that 58% of Welsh employers are experiencing skills shortages - the highest in the UK. This disconnect between employers and the next generation of workers threatens to undermine our progress.

That’s why I fully support the National Training Federation for Wales’ call to double investment in apprenticeships. Their newly launched Manifesto for Apprenticeships outlines a bold vision: 200,000 apprenticeships over the next Senedd term. According to the Centre for Economics and Business Research, this could generate an additional £3.4 billion in lifetime earnings for people in Wales over the next 30 years.

As Chartered Accountants, our members know that sustainable growth is built on strong foundations - skills, innovation, and access to finance. ICAEW has long championed these pillars, and I believe we now have a real opportunity to align our industrial ambitions with the talent and potential of our people.

Let’s build a Wales that thrives on skills, opportunity, and ambition. Let’s honour our industrial past by shaping a future that is inclusive, innovative, and globally competitive.