Made in the UK

In the April 2026 issue of ISMR, we highlight the manufacturing landscape in the United Kingdom as well as challenges, opportunities and new initiatives for the future.

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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK), comprises England, Scotland, Wales and Northern Ireland with a population of over 69 million in 2024. The UK includes the island of Great Britain, the north-eastern part of the island of Ireland and most of the smaller islands within the British Isles.

“Modern UK manufacturing offers specialisation, innovation and global integration. The UK excels in areas where precision, expertise and R&D are paramount,” commented Berwick Partners. “Key sectors include advanced engineering; speciality chemicals and materials; aerospace and defence; energy and nuclear technology; automotive; life sciences and FMCG (fast-moving consumer goods).”

In 2025, the UK rose to 11th in global manufacturing output. The United Kingdom has long been a hub for manufacturing, with a rich history of industry and innovation. Manufacturing is not just a part of Britain’s industrial heritage but a crucial element of its sustainability, competitiveness and resilience. Its highly skilled workforce has a strong tradition of craftsmanship, engineering and manufacturing. The UK also offers world-class research institutions and universities, as well as deep capital markets.

Navigating the challenges

UK manufacturers are currently grappling with high energy/material costs, skills shortages, increasing employment costs, rising business rates and intense global competition. Skills shortages remain one of the biggest barriers to growth and productivity for manufacturers, with an estimated 50,000 live vacancies in the sector.

Brexit has put up cumbersome trade barriers, leading to trade complexities and higher costs for UK manufacturers. War in the Middle- East is also exacerbating concerns for UK manufacturers over global supply-chains, rising inflation and increased energy costs. Industrial power prices in the UK are already the highest in the European continent, four times higher than in the U.S. and 46% above the global average, warned Make UK in March this year. The prospect of higher consumer price inflation in the months ahead will also weigh further on growth, reported the CBI on 26 March 2026.

To read the rest of this article in the April 2026 issue of ISMR, see https://joom.ag/oVvd/p32