Trade group warns of hit to Scotland from Labour's Invest 2035 plan
It also comes as concerns continue to surface over the future of the last remaining commercial shipyard firm on the Clyde, the nationalised Ferguson Marine which has until recently and just one contract remaining on its books - to finish the long-delayed and wildly over-budget ferry MV Glen Rosa.
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The yard's business plan to 2029 had assumed that it would get a direct award for the Scottish Government's small vessel replacement programme. But the Scottish Government decided this was not possible due to UK subsidy laws and the yard lost out to Polish firm Remotnowa on the first phase of the programme to deliver seven ferries.
Sir Keir Starmer launched Invest 2035 (Image: Simon Dawson / No 10 Downing Str) Inverclyde MP Martin McClusky has been further urging the Scottish Government to award the contract for a future replacement for the ageing MV Lord of the Isles directly to Ferguson Marine.
The SMI has warned UK ministers that traditional shipbuilding and marine engineering, particularly on the Clyde and Rosyth will remain "vulnerable to international competition" which they say is dominated by state-owned and state-supported shipyards with "readier access to finance and cyclical demand unless underpinned by strategic sovereign procurement".
Sovereign procurement is a strategic approach where purchases are made with the explicit goal of benefiting the nation or local economy and often involves prioritising domestic businesses, including small and medium enterprises (SMEs), and supporting local industries and jobs.
It pointed out that the sector was once the global leader centred around the Clyde, but had declined rapidly from the 1960s onwards due to global overcapacity, the size of vessels required in the market outgrowing UK yards, the cost of competition from East Asia and also a "lack of state support, and underinvestment in innovation and productivity".
HMS Glasgow is manoeuvered onto a barge at the BAE Govan shipyard in Glasgow (Image: PA) It said: "Transition was not effectively managed, leading to a collapse in employment, decimation of skills, and widespread economic deprivation in riverside communities. Defence contracts have revitalised the sector but at a different scale to pre- and post-war years."
And it added in an analysis: "Without sustained investment in shipyard modernisation and green vessel innovation, the sector risks further erosion."
It said that the North Sea oil and gas industry was entering a "structural decline" due to decarbonisation, maturing fields and shifts by investors away from fossil fuels and that it was crucial that UK wind farms bought British.
It said the transition would have a "profound impact on Aberdeen and surrounding areas, affecting supply chains, services and skilled employment.
They said: "While the energy sector is pivoting towards renewables, a managed transition plan is essential to retain industrial capacity and employment. It is essential for ports like Aberdeen to win renewables work with UK windfarms, if the UK wants to maintain its sovereign capabilities in these crucial sectors."
But they warned that the "key risk" was not in transitioning, but in "failing to equip Scottish communities and firms with the tools, skills and investment to navigate it successfully. A place-sensistive, sector-specific response is needed".
It said that while the ambition of Invest 2035 was to drive growth, productivity and innovation across the UK, the strategy "does not fully reflect Scotland's unique industrial profile or the specific challenges facing its coastal and energy-transitioning communities".
It said that while the strategy references a shift to Net Zero, it "lacks specific mechanisms for supporting regions heavily exposed to oil and gas decline, such as north-east Scotland".
The SMI added: "Despite Scotland's significant shipbuilding, port, and marine technology capabilities, the maritime sector is underrepresented in Invest 2035's eight growth-driving sectors. This risks overlooking critical opportunities for coastal regeneration, sovereign manufacturing, and decarbonisation leadership.
"Scotland is well placed to contribute to the UK's global competitiveness in maritime defence, offshore renewables, and digital ocean infrastructure. Invest 2035 should embed export-oriented growth strategies for these subsectors and provide a framework for long-term sovereign procurement that supports Scotland's shipyards and marine engineering firms.
Nicola Sturgeon at Ferguson Marine (Image: PA) "In summary, Invest 2035 requires greater regional tailoring, stronger maritime inclusion, and deeper integration with Scotland's economic strategies to realise its full potential north of the border."
Analysis from the Robert Gordon University last month warned that the oil and gas industry could lose up to 400 jobs every two weeks for the next five years unless action is taken.
It says that the UK risks losing tens of thousands of offshore energy jobs by 2030 unless urgent and coordinated action is taken immediately. It is estimated that 43% of the UK's oil and gas jobs are in Scotland.
Demands have been made for an independent public inquiry as it was claimed hundreds of millions of pounds of taxpayers money has been 'lost' by a 'scandalous' ministerial failure to properly consider a Clyde shipbuilding revolution.
Ministers have given the nod to contracts to build 13 ferries in the past decade, pushing a billion pounds with only one so far delivered and the responsibility for only two given to Scottish firms.
The cut price catamaran ferry revolution which promised to create and secure hundreds of Scots jobs and save state-controlled Scots shipyard firm Ferguson Marine while helping solve the nation's ferry crisis involved the creation of a fleet of 50 catamarans.
It was part of an £800 million scheme - a fraction of the cost of those currently being built. The proposal works out at £16m per catamaran while the cost of the Scottish Government's 13 is at around £70m to date.
It was envisaged that the major catamaran project would be based at nationalised Ferguson Marine, Inchgreen dry dock in Inverclyde and Govan dry dock.
A UK Government spokesman said: "Our commitment to shipbuilding was made clear when we secured a deal to save thousands of jobs at Harland and Wolff, including in Scotland, ensuring future investment in the industry."
'Our Modern Industrial Strategy will go even further to ensure a bright future for Scottish shipbuilding with lower energy costs, major infrastructure investment and strengthened skills and innovation as part of our Plan for Change.'
Deputy First Minister Kate Forbes said the Scottish Government agreed that Scotland must receive a fair share of spending, including on naval shipbuilding, "at which we have proven expertise".
She added: 'The shipbuilding sector plays a vital role in supporting jobs and driving economic growth across Scotland. We are committed to promoting manufacturing and innovation and continue to engage with businesses in the sector as part of that commitment.'
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