As we leave 2025 ‘there’s some good news and some bad news’
5 December 2025 
By Stephen Phipson CBE, Make UK CEO: As we leave 2025 and usher in a New Year, as the saying goes ‘there’s some good news and some bad news’.
The last twelve months have seen yet another tumultuous period where the resilience that is now hard wired into manufacturing as a sector was fully on display again. Domestically there have been the challenges from energy bills that remain eye wateringly high for many businesses, while the full impact of the increase in National Insurance Contributions was felt for the first time. If that were not enough, overseas they have had to cope with an erratic US President flip flopping from one decision on tariffs to the next. Yet, despite all of that, Make UK’s final two quarterly surveys of the year showed a fairly positive picture, with the forward looking indicators for the first quarter of 2026 looking especially strong.
Looking forward to 2026, each year Make UK publishes a survey of Senior Executives in conjunction with PWC. The standout positive from the 2026 Survey to be published in January shows manufacturers believe the introduction of an industrial strategy will have the biggest impact on their growth prospects.
As well as the benefits from an industrial strategy, the survey shows that, despite the current challenges from escalating costs and a potential trade war, a majority of manufacturers believe that overall, the UK remains a competitive place in which to manufacture. It also shows expanding into new markets, developing new products and digital technologies and AI are the focus of their investments.
However, the survey shows signs the escalating costs manufacturers are facing, especially employment and energy costs, are threatening a tipping point whereby the UK will see investment plans cancelled or, shifted overseas as a result.
In response, Make UK is now urging Government to speed up the pace of delivery on industrial strategy, as well as bringing forward the much vaunted business energy support scheme as the current proposed introduction in 2027 is too late. Make UK is also campaigning for the scheme to be expanded right across the sector so the broadest possible number of companies are covered.
Despite these challenges, manufacturers have demonstrated their resilience over and over again in recent years and, those that remain innovative and are prepared to invest in new technologies and products, expanding their markets and, most crucially, invest in their people will continue to thrive.