UK manufacturers are entering 2026 in a period of cautious optimism. Global uncertainty, trade tensions, rising energy costs, and domestic policy developments continue to challenge the sector. Yet, businesses are demonstrating resilience, adaptability, and a strong focus on risk management.

International trade uncertainty, evolving regulations, and net zero commitments remain key considerations for manufacturers. Shifts in global supply chains, tariffs, and regulatory requirements are prompting businesses to rethink sourcing strategies and operational flexibility.

Laura Capper, our Head of Manufacturing, says: “2026 will be a year where operational strength and the ability to respond to challenges define success.

“Manufacturers are increasingly aware of how policy and geopolitical factors affect their operations, those who design flexibility into supply chains and governance structures will be better positioned to navigate disruption.”

Firms are also monitoring the implications of energy and environmental policies, such as carbon pricing and reporting obligations, to ensure compliance while maintaining competitiveness.

Resilience now extends beyond financial stability. Manufacturers are embedding flexibility into production, supply chains, workforce management, and governance structures.

“Financial stability alone isn’t enough,” Laura explains. “Manufacturers are building resilience across operations and digital systems to adapt quickly when conditions change.”

Practical approaches such as scenario planning, stress-testing operations, and diversifying supply chains are becoming standard, particularly in sectors exposed to global demand swings or energy price volatility.

Artificial intelligence, automation, and advanced data tools are increasingly moving from pilot projects into day-to-day operations.

“2026 is the year AI becomes part of business-as-usual,” Laura observes. “Manufacturers are integrating AI for predictive maintenance, energy efficiency, demand forecasting, and quality control. The biggest gains come from connecting these systems end-to-end.”

The challenge is shifting from technology selection to implementation capacity, ensuring organisations have the leadership, skills, and governance to deliver digital change effectively. Practical adoption is helping firms strengthen operational performance, reduce downtime, and improve resource utilisation.

Sustainability is no longer just a regulatory requirement – it is becoming central to operational strategy and competitiveness. Carbon reduction, circularity, and responsible sourcing are influencing investment and planning decisions.

“Sustainability has moved firmly into the value-creation space,” Laura says. “Low-carbon processes, energy efficiency, and circular design aren’t just environmental decisions – they’re commercial ones.”

Regulatory expectations around climate reporting, energy efficiency, and supply chain transparency are prompting manufacturers to develop clearer roadmaps and invest in future-fit infrastructure. In sectors such as metals, chemicals, food, and construction products, low-carbon innovations are increasingly differentiators in domestic and global markets.

The need for a skilled, adaptable workforce continues to grow. Demand is high for technicians, digital specialists, sustainability professionals, and leaders capable of managing change.

“Future Fit workforces combine technical ability with adaptability,” Laura says. “Investing in skills, training, and development remains central to navigating a challenging environment.”

Manufacturers are increasingly focusing on succession planning, mid-career upskilling, and strategies to retain talent in a competitive labour market. This approach helps sustain operational continuity and builds long-term organisational resilience.

Clients are demanding more transparency, reliability, and traceability, reflecting broader market expectations around sustainability and supply chain accountability.

“Manufacturers that can consistently deliver on time, with predictable quality and minimal environmental impact, will stand out,” Laura notes.

Meeting these expectations requires stronger collaboration across the supply chain, digital reporting, and proactive communication - all of which are becoming integral to future-fit operations.

Looking ahead, 2026 is shaping up to be a year where agility and future-readiness will define success. The businesses that thrive won’t just be those chasing headline growth, but those embedding resilience into their day-to-day operations – integrating digital tools, advancing sustainability, and investing in workforce capability.

“2026 will reward those who can anticipate change, pivot quickly, and make informed decisions in real time,” Laura notes. “UK manufacturers have a long tradition of resilience, but it’s their willingness to evolve - through smart investment, strategic partnerships, and sharper risk management – that will set them apart in a rapidly shifting landscape.”

Dive into the full set of 2026 sector insights and discover our practical guidance to get your business Future Fit for 2026: Sector Trends