Written Statement: Review of Industry Wales

Earlier this year I commissioned a review of the Sector Development Wales Partnership (SDWP) which trades as Industry Wales and is sponsored by the Welsh Government. The objective of the Review was to ensure that aligned to the economic conditions of 2025, the Welsh Government and its partners could access the best information, services and unfettered advice from the sectors covered by Industry Wales. 

In April 2013 Industry Wales was established under the Companies Act 2006. Fully accountable to Welsh Ministers, Industry Wales is a wholly owned company limited by guarantee.  Industry Wales became the sole operator and guarantor for three existing sector forums: the Welsh Automotive Forum, Aerospace Wales and Technology Connected (formerly EstNet). Net Zero Industry Wales was incorporated in December 2022 and added to the portfolio.

Industry Wales’s Term of Government Remit objectives (2022-2026) cover the provision of unfettered advice to support Welsh Government economic policy and specific projects, the promotion of collaboration and supply chain opportunities, sector intelligence, and supporting key trade events in the UK and overseas. It also provides governance and financial oversight for the sector forums, with a commitment to reducing reliance on government funding. In 2025-26 the Welsh Government provided total grant funding of £837,000 to Industry Wales to deliver these objectives.

The Review was tasked with making recommendations on options for the future of Industry Wales beyond March 2026. The Review explored:

• The extent to which the Industry Wales Group is delivering its remit as set out in the Term of Government remit letter and annual business plans.
• If the current group structure and sector focus is appropriate in the current political and economic environment.
• Whether the existing delivery and governance arrangements of the Group represent best value for money in terms of supporting its members, stakeholders and the Welsh Government.
• Alternative delivery options that could provide some, or all, of the current functions aligned to the review findings.

Since the current governance structure and processes were devised in 2013, the economic and financial situation has changed so dramatically, the Review concluded the status quo could not be maintained.  

The Review’s findings, which I accept in full, include the finding that it is time for us to consider a different approach. The Welsh Government will, at the end of the current term of government agreement, remove itself as the sole guarantor for Industry Wales and dissolve the company.  Over the next six months the Welsh Government will, alongside Industry Wales, actively engage with the forums individually to determine the best approach to continue bespoke sectoral advice. Consideration will include transferring to an alternative structure or parent entity, grant support for dedicated delivery activity and stopping support where the economy has moved on or where forums are self-funding and/or have alternative options. These specific plans are already under way as part of the Review, and we remain committed to receiving unfettered sectoral advice from membership organisations going forward.

I want to place on record my sincere thanks to Industry Wales, to the Chair, Professor Keith Ridgway, and the forums and their respective boards and board chairs (past and present).  I am very aware of the impact that this decision will have. We will work closely with Industry Wales, the forums and stakeholders to put in place the appropriate support, without limiting options for a future Government.