The impact of the Iran war means a million more homeowners face higher mortgage bills than the Bank of England had previously expected.

Just over five million homeowners should expect their monthly mortgage repayments to increase by the end of 2028, according to Bank forecasts.

That compared to four million projected by the Bank in December.

However, the Bank’s Financial Stability Report said the hit would not be as hard as seen in recent years.

A typical owner-occupier rolling off a fixed rate in the next two years is likely to face an increase of £45 on their monthly mortgage bill, the Bank said. That compares to a typical rise of £120 for those getting a new deal between the end of 2022 and end of 2024.

However, 750,000 homeowners who are paying less than 3% interest on their current deal would be rolling off these products this year and would see an average increase of £170 per month in repayments, the Bank said.

More than eight in 10 mortgage customers have fixed-rate deals.

The interest rate on this kind of mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it.

More than two million borrowers on a two-year fixed deal expiring by the end of 2028 were projected to remortgage close to their existing rate and see little change in repayments, the Bank said.

However, these borrowers were now unlikely to see repayments fall over coming years, as had been forecast prior to the Iran conflict.

Bangkok is emerging as a premier hub for the global ultra-wealthy due to its combination of strong domestic entrepreneurship and growing international appeal. The city is currently Southeast Asia’s fastest-growing wealth hub, with its ultra-high-net-worth population projected to grow by more than 50% by 2030

Bangkok is on track to become one of the world’s fastest-growing centres for ultra-high-net-worth individuals over the next five years, according to new data that positions the Thai capital ahead of every other major city in Southeast Asia, including Jakarta.

The numbers behind the surge

Thailand was home to 2,090 ultra-high-net-worth individuals in 2025, of which 1,210 listed Bangkok as their primary residence, according to Altrata’s World Ultra Wealth Report 2026. The wealth intelligence firm defines UHNW individuals as those holding net assets above US$30 million.

Bangkok’s UHNW population is projected to climb to roughly 1,840 by 2030, an increase of more than 50 percent, or an average annual growth rate of 8.7 percent, according to Maya Imberg, Altrata’s senior director and head of thought leadership and analytics. That trajectory ranks Bangkok 12th among the world’s 100 largest urban economies by nominal GDP for UHNW growth, and first in Southeast Asia.

A separate forecast from Knight Frank’s Wealth Report 2026 points in the same direction, projecting Thailand’s UHNW population will grow 26 percent between 2026 and 2031, alongside a 6.3 percent rise in prime residential prices.

Entrepreneurs, not heirs

The composition of Bangkok’s wealthy class runs counter to some regional assumptions. Fully inherited wealth accounts for less than one-tenth of the city’s ultra-wealthy population, with Imberg noting that most individuals built their fortunes themselves, often with a degree of family backing rather than inheritance alone.

Altrata attributes the durability of this growth to structural rather than cyclical factors: institutional quality, tax and trade policy, entrepreneurship, capital market depth, and currency strength. The firm also points to rising “ultra-mobility” among wealthy individuals, who increasingly invest, work, and live across several jurisdictions rather than anchoring exclusively to one.

Real estate and the mobility trend

Knight Frank Thailand’s managing director, Nattha Kahapana, frames the shift as part of Thailand’s repositioning in the eyes of global wealth: less an emerging market, more an evolving wealth centre built on liveability, infrastructure, and lifestyle. Demand is concentrated in super-prime condominiums in Bangkok, alongside branded residences in Phuket and Koh Samui, and wellness-oriented holiday homes, with buyers coming from Asia, the Middle East, and Europe.

Set against a fragile backdrop

The wealth build-up is unfolding even as global equity markets show signs of stress. As outlined in TBN’s recent analysis of stock market fragility signals, the SET Index has swung sharply in 2026, including an 8 percent single-day drop that triggered a circuit breaker in March before recovering to a 2.75-year high above 1,500 points by May. That volatility underscores a broader theme in the UHNW data: Thailand’s wealth expansion is being driven by long-run structural factors, entrepreneurship, institutional credibility, capital market access, rather than short-term market cycles, even as those same cycles inject volatility into the domestic index.

The bigger picture

Bangkok’s rise fits inside a broader global expansion. The world’s UHNW population reached a record 556,850 individuals in 2025, up 14.4 percent year-on-year, the strongest expansion since 2017, with combined wealth of US$63.8 trillion. Altrata expects that figure to reach 746,570 individuals by 2030, driven by technological transformation, private capital expansion, and the restructuring of the global economy around artificial intelligence, energy transition, and digital infrastructure.

For Bangkok, the data suggests the city’s wealth trajectory is no longer a side note to the broader ASEAN growth story, but one of its more distinctive chapters.

Source : World Ultra Wealth Report 2026 – Altrata

Other People are Reading

LONDON — Christopher Nolan’s long-awaited adaptation of “The Odyssey” premiered Monday in London, and the first wave of reactions from critics and journalists who attended the screening suggest the director’s latest epic has lived up to the enormous anticipation surrounding it.

The film, which stars Matt Damon as the Greek hero Odysseus, Anne Hathaway as his wife Penelope, and Tom Holland as their son Telemachus, chronicles Odysseus’ long and perilous journey home to Ithaca following the Trojan War. Notably, “The Odyssey” is the first feature film ever shot entirely using IMAX cameras, and Universal Pictures screened the movie for critics in IMAX theaters where available, underscoring the technical ambitions behind the project.

Unlike some of the studio’s previous marketing approaches, Universal opted not to hold dedicated early “word of mouth” screenings exclusively for social media influencers ahead of the film’s release. Instead, professional journalists and other attendees who saw the movie at its London premiere and subsequent press screenings were included in the first wave of public reactions, alongside a smaller number of influencers who participated in press junkets tied to the film.

Reaction from outlets that attended the screening was overwhelmingly positive. Time Out described the film as an impressive achievement bolstered by strong performances across its ensemble cast, singling out actress Samantha Morton’s work as especially memorable, and noting that the film balances intense drama with a few moments of levity. The outlet praised the emotional weight of certain sequences, including one involving the Cyclops, and encouraged audiences to see the film more than once.

IndieWire offered a somewhat more measured take, describing the film as a natural follow-up to Nolan’s previous project, “Oppenheimer,” while noting that its IMAX scale is immense even if some elements of the storytelling occasionally feel less refined than Nolan’s strongest work. The outlet nonetheless indicated that the film’s final act ultimately rewards viewers for the journey.

Variety was more emphatic in its praise, calling the film an astonishing achievement and a triumphant, spectacular epic. The outlet highlighted standout performances from Holland, Damon, Hathaway, John Leguizamo, Robert Pattinson and Lupita Nyong’o, describing several as among the best of their respective careers, and praised the film’s battle sequences, particularly those depicting the fall of Troy, as breathtaking.

The Independent called the film Nolan’s biggest to date, noting that it features significantly more large-scale set pieces than any of his previous projects and praising the film’s visual ambition. The outlet singled out Holland’s performance as Telemachus as one of the best of his career, alongside praise for supporting turns from Himesh Patel and Morton, whom the review credited with stealing several scenes despite limited screen time.

The Hollywood Reporter’s film editor, Aaron Couch, noted that after following Nolan’s films in theaters since “Memento,” “The Odyssey” marks the first time the director has included a fully realized horror sequence in one of his films, a detail that stood out to Couch as a notable departure from Nolan’s prior work.

DigitalSpy described the film as staggering, citing its intense and spectacular set pieces alongside a powerful musical score, and noted that while some longtime fans of Homer’s original poem might take issue with certain adaptation choices, the overall theatrical experience remains distinctly Nolan’s own.

The film’s scale reflects years of preparation. Nolan has described “The Odyssey” as a personal, long-gestating project, telling Variety in a May interview that the film needed to be the biggest he had ever made. In an earlier interview with Empire magazine, Nolan explained his interest in bringing a mythological story to the screen with the scale and credibility typically reserved for big-budget studio productions, saying he had grown up watching classic mythological films and had long wanted to revisit that kind of storytelling with the resources of a major IMAX production.

The film’s ensemble cast extends well beyond its central trio, including Zendaya as the goddess Athena, Charlize Theron as the sorceress Calypso, Lupita Nyong’o in dual roles as Helen of Troy and Clytemnestra, and additional performances from Jon Bernthal, Corey Hawkins, Mia Goth, Elliot Page, James Remar and Bill Irwin, among others. Rapper and actor Travis Scott also appears in the film, a casting choice Nolan has said was intended to draw a thematic connection between rap and oral poetry as related art forms.

Production on the film took Nolan and his crew across multiple international locations, including Italy, Iceland, Greece, Morocco and Scotland, with additional filming completed at Universal’s studio lot in California. Specific filming locations have included the coastal region of Al-Dakhla in Western Sahara, the historic Castle of Santa Caterina on the Sicilian island of Favignana, and the Moray Firth inlet along Scotland’s northeastern coast.

“The Odyssey” is set for wide theatrical release July 17 in both the United States and the United Kingdom, with early preview screenings scheduled to begin the afternoon of July 16. The film will maintain exclusive access to IMAX screens for its first three weeks of release, according to reporting from Hollywood Life, and carries a running time of approximately 172 minutes. The production has been described in multiple reports as the most expensive film of Nolan’s career, reflecting the scale of its international shoot and its status as the first feature ever captured entirely on IMAX film cameras.

The film marks Nolan’s first release since 2023’s “Oppenheimer,” which won the Academy Award for best picture and earned Nolan his first Oscar for best director. With early reactions from London pointing toward a broadly enthusiastic critical reception, “The Odyssey” appears positioned to continue Nolan’s recent run of both critical and commercial success as it heads toward its wide theatrical debut later this month.

Indian IT stocks gained on Tuesday, with Infosys, TCS, Tech Mahindra and Mphasis rising up to 4%, even as Asian technology shares came under pressure after a sharp selloff in South Korea’s chipmakers. Infosys rose nearly 4%, while TCS gained 3%. Tech Mahindra was up 3.4%, and Mphasis advanced 3%. Wipro, however, slipped 0.4%, staying weak even as the broader IT pack recovered.

The move came at a time when investors are preparing for the June-quarter earnings season of Indian IT companies. The sector has been under heavy pressure for months due to weak discretionary technology spending, slower client decision-making, pressure from artificial intelligence-led productivity gains and valuation concerns.

The rebound in Indian IT stocks stood in contrast to the fall in South Korea, where AI-linked chip stocks dragged the market lower. The benchmark KOSPI closed down 395.02 points, or 4.9%, at 7,656.31, after falling as much as 8.2% earlier in the session. The index is now down 16% from its June 22 record close of 9,114.55, though it remains up 82% so far this year.

Circuit breakers were triggered on the KOSPI during the session, the sixth such instance this year, as volatility in semiconductor stocks remained high. Samsung Electronics and SK Hynix led the decline, ending down 6.9% and 6.1%, respectively, after both fell more than 10% intraday.

Also Read: The Q1 verdict: Can TCS, Infosys, other IT results stop a Rs 17 lakh crore AI-led rout?

Samsung fell even after forecasting a 19-fold jump in second-quarter operating profit. The fall showed that investors are now questioning whether strong AI-linked earnings are already priced into chip stocks after a sharp rally.
For Indian IT investors, the concern is different but linked to the same AI theme. While Korean chipmakers have rallied on AI demand, Indian IT stocks have fallen because investors worry that AI could hurt billing growth, reduce manpower-linked revenue and force companies to pass productivity benefits to clients.The correction has been severe. TCS, Infosys, Wipro and LTIMindtree are now down at least 50% from their all-time highs. Across 10 major IT companies, the combined market-cap loss from peak levels is estimated at more than Rs 17 lakh crore.

TCS has seen the biggest destruction in value. The stock has fallen about 56% from its all-time high of Rs 4,592.25 in August 2024 to around Rs 2,033. Its market cap has dropped from Rs 16.48 lakh crore to Rs 7.36 lakh crore, wiping out more than Rs 9.12 lakh crore.

Infosys has nearly halved from its peak of Rs 2,006.45 in December 2024 to Rs 1,006. Its market value has fallen from Rs 8.30 lakh crore to Rs 4.08 lakh crore. Wipro is down 54% from its peak, while LTIMindtree has lost more than 53%. HCL Tech, Persistent Systems, Mphasis and Tech Mahindra have also seen sharp declines.

The latest rise in IT shares may partly reflect bargain buying after the steep fall. But the real test will come with Q1 results and management commentary.

Morgan Stanley expects a muted first quarter for IT companies and subdued commentary for the second quarter. The brokerage sees risks to FY27 revenue guidance ranges and has lowered estimates for large-cap IT companies.

It has also downgraded TCS to equal-weight, saying the stock’s premium to Accenture has risen above 40%, putting valuations for the broader group at risk. Morgan Stanley expects organic revenue growth for most large-cap IT firms to drift towards 1.5-3.5%, except Wipro, where it sees a decline.

Investors will now watch whether companies such as TCS and Infosys can show signs of demand stability, defend margins and explain how AI will support revenue rather than only reduce costs for clients.\

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Remote work was supposed to erode company culture. The argument was familiar by the early 2020s: camaraderie needs hallways, and loyalty needs a shared roof. Employees at Risepoint, scattered across the United States, Canada, the United Kingdom, and Australia, may have a counterargument.

The education technology company, which partners with more than 100 universities and colleges on online degree programs, earned four 2026 Comparably Best Places to Work Awards: Best Career Growth, Best Leadership Teams, Best Sales Teams, and Best Product & Design Teams. Comparably’s awards come entirely from anonymous employee feedback gathered over 12 months, across categories that evaluate leadership, career growth, compensation, work environment, and team effectiveness.

A Workforce That Uses What It Builds

Risepoint employs more than 1,400 people, and the composition of that workforce reads like the student body of the universities it serves. Of that group, 9 in 10 hold college degrees, and 4 in 10 were the first in their families to attend college. Roughly half have worked in education before joining, and 43% have spent a decade or more in higher education.

The most telling figure may be this one: 15% of employees have enrolled in the very degree programs Risepoint supports. A sizable slice of the workforce has sat on the student side of the experience, fitting coursework around a full work week the way most students in those programs do. The company encourages the overlap: it reimburses tuition for employees who enroll in Risepoint-supported programs.

Chesley Fernandes, a team member who earned an M.Ed. in Educational Leadership, described what that looks like in practice. “I completed my degree at the same university I now support and can relate to the students I work with every day,” she said. “With this connection, I can reassure them through my own experiences that they are not alone and can succeed in their program.”

Career Growth, Measured From Within

Of the four awards, Best Career Growth may be the hardest for a remote company to win. Advancement in distributed organizations can favor whoever happens to be most visible. Building career paths without a hallway to be seen in takes deliberate structure: defined development programs and leaders trained to develop people they rarely meet in person. Comparably gives the award to employers whose people rate their room to advance, learn, and grow professionally as strong, and Risepoint employees put the company in that group.

“These awards are especially meaningful because they come directly from employee feedback,” said Fernando Bleichmar, the company’s CEO. “Our people are at the center of everything we do. We are committed to fostering a culture where employees feel supported in their growth, empowered to make an impact, and connected to a shared mission.”

Trust That Travels

The Best Leadership Teams award turns on whether employees trust the executive team and the direction it has set for the organization. That kind of confidence is built differently over video calls than over lunch tables, and it tends to be more fragile. The award sits alongside earlier Comparably recognitions for Best CEO, Best Company Culture, and Best Company Work-Life Balance, a pattern that points to something sturdier than one good survey cycle.

Employee accounts echo the rating data. “The work culture is amazing at Risepoint,” said Jazzie Santos-Rogers, a senior manager on the growth marketing team. “Not only do you have amazing peers to collaborate with on a daily basis, but management is knowledgeable and supportive on every level.”

The remaining two awards, Best Sales Teams and Best Product & Design Teams, recognize the departments that anchor opposite ends of the business: the people who build university partnerships and the people who build the tools those partnerships run on.

The Mission Underneath

Risepoint concentrates on regional universities, the institutions that serve their surrounding communities and educate much of the local workforce. Its partner institutions span 40 states and five countries, and the programs it supports lean toward fields where demand stays strong: healthcare, education, business, and public service. Most students in those programs are working adults.

That focus shapes the culture being rated. Employees who came from education, were first in their families to finish college, or earned degrees through the programs they now support have lived the mission from both sides. When that workforce hands its employer four culture awards in a single year, the verdict carries credibility no headquarters could supply.

Nikola Jokic has removed any lingering doubt about his long-term future with the Denver Nuggets, telling reporters Monday that he intends to remain with the franchise for the remainder of his career and plans to sign a contract extension as soon as he becomes eligible next summer.

The three-time NBA Most Valuable Player made the comments in Serbian following Serbia’s FIBA World Cup qualifying game Monday, a 94-81 win over Bosnia and Herzegovina. “My idea is to sign next summer and stay with Denver for the rest of my career,” Jokic told reporters, according to a translation published by DNVR Sports. He elaborated further on his intentions, adding, “My idea and desire is to stay in Denver. I’ll probably sign next year… My desire is to play the rest of my life in Denver.”

Jokic currently has two seasons remaining on his existing contract with Denver, which includes a player option that would allow him to become an unrestricted free agent in 2028, the year he turns 33. Rather than wait until that option comes into play, Jokic indicated he intends to sign a new extension well before then, effectively closing the door on any speculation about his eventual free agency.

Under current NBA rules, Jokic would become eligible to sign a new contract extension next summer, and reports indicate he could be in position to sign the largest contract in league history when he becomes eligible for a new deal in the summer of 2027. According to ESPN, Jokic would be eligible for a five-year contract worth approximately $359.5 million as a free agent at that time, a figure that would represent one of the most lucrative deals ever signed by an NBA player.

Jokic’s comments carry significant weight given his standing as one of the most accomplished players of his generation. Selected by Denver with the 41st overall pick in the second round of the 2014 NBA Draft, Jokic has developed into one of the most dominant players in franchise history, leading the Nuggets to their first NBA championship in 2023 and earning Finals MVP honors for his performance during that title run.

Jokic’s individual production has remained remarkably consistent throughout his career. During the 2025-26 season, he averaged a triple-double across 65 appearances, posting 27.7 points, 12.9 rebounds and 10.7 assists per game. Across 11 NBA seasons, Jokic has averaged 22.2 points, 11.1 rebounds and 7.5 assists per game, numbers that have established him as one of the most well-rounded and statistically dominant centers in league history.

Jokic’s decision to publicly reaffirm his commitment to Denver comes during an active offseason across the league, one that has already seen a wave of major roster moves and star player movement. The Milwaukee Bucks completed a blockbuster trade sending two-time MVP Giannis Antetokounmpo to the Miami Heat, while the Boston Celtics traded Jaylen Brown to the Philadelphia 76ers in exchange for Paul George. Additional moves have included Kawhi Leonard’s reported return to the Toronto Raptors, Ja Morant’s trade from the Memphis Grizzlies to the Portland Trail Blazers, and LaMelo Ball’s move from the Charlotte Hornets to the Minnesota Timberwolves. LeBron James has also informed the Los Angeles Lakers that he intends to play elsewhere for the 2026-27 season, adding further uncertainty to the league’s star player landscape heading into the new campaign.

Against that backdrop of significant roster turnover across the NBA, Jokic’s clear and public statement of loyalty to Denver stands out as a rare example of stability amid an otherwise turbulent offseason for player movement. His comments also come at a time when the Nuggets have continued to build their roster around him, positioning the team to remain competitive in the Western Conference as it looks to build on its 2023 championship run.

Jokic’s timeline for signing an extension aligns with typical NBA rules governing veteran contract extensions, which generally allow players to sign new deals a certain number of years into their existing contracts. By waiting until next summer to formally sign an extension rather than pursuing one immediately, Jokic would be positioning himself to potentially maximize the length and value of his new deal under the league’s collective bargaining agreement, while still providing Nuggets fans and the organization with clear assurance of his long-term intentions well ahead of that signing window.

The 31-year-old center’s comments also reflect a broader pattern of loyalty he has expressed throughout his career, having consistently emphasized his preference for stability with the Nuggets organization even as rumors and speculation about star player movement have periodically circulated around other top players across the league. Unlike several other franchise cornerstones who have requested trades or explored other options in recent years, Jokic has remained a steady, singular figure in Denver since entering the league, a dynamic that has helped the Nuggets build sustained success around his unique skill set as a passing, scoring and rebounding threat at the center position.

With training camps still months away and the NBA’s offseason continuing to produce roster shakeups across the league, Jokic’s declaration of long-term commitment to Denver offers a measure of certainty for a franchise that has built its recent championship aspirations around his continued presence. Whether that commitment translates into a formal contract extension as early as next summer, as Jokic has now publicly indicated he intends to pursue, will become one of the more closely watched storylines of the coming NBA calendar, particularly given the record-setting financial terms he could command once fully eligible to sign a new deal in 2027.

UK manufacturing SMEs are struggling to fill skilled roles such as machinists, operators and toolmakers, and the gap is no longer closing on its own.

Rather than waiting out the hiring crunch, a growing number of small producers are investing in automated equipment to reduce their dependency on scarce labour. This shift is changing how owners plan output, quote for new work and structure their teams.

This article looks at why the skills shortage has become so persistent, what automation adoption looks like in practice for small manufacturers, and what owners should weigh up before committing capital to new equipment.

The Scale of the Skills Shortage

Manufacturing vacancies in the UK have remained stubbornly high for several years. The Office for National Statistics has recorded manufacturing job vacancies sitting in the region of 58,000 to 61,000 through 2024 and into 2026, a level well above pre-pandemic norms. Make UK’s own research goes further: 75% of manufacturers now cite skills shortages as the single biggest barrier to growth, and over 70% report difficulty recruiting skilled workers at all.

The shortage is also generational. Around 21% of the current manufacturing workforce is aged 55 or over, and apprenticeship pipelines have not expanded quickly enough to replace those workers as they retire. Roles such as CNC machinists, maintenance engineers and toolmakers now take considerably longer to fill than they did five years ago.

Small manufacturers feel this more acutely than large enterprises. A big factory can absorb a vacant post across several teams; a workshop with eight or ten staff often cannot. Losing a single skilled machinist can mean turning down orders or paying premium rates for agency cover, and SMEs typically have smaller recruitment budgets and less capacity to compete on salary with larger firms in the same labour market.

Why Automation Is the Practical Response

For many small producers, automation is becoming less about efficiency and more about workforce resilience. CNC and laser-based equipment reduces how much a business depends on one person’s specialized manual skill, because the precision moves from the operator’s hands into the machine’s programming.

In practice, this changes three things for a small manufacturer. First, output becomes more consistent – a programmed cut or engraving repeats to the same tolerance regardless of who is running the shift. Second, training time for new staff falls, since operating and loading a machine takes far less time to learn than mastering manual metalwork or joinery to a professional standard. Third, a smaller shop can take on precision work it previously had to subcontract or decline, because it no longer needs a dedicated specialist on the floor for every job.

This is best understood as a shift from hiring the skill to buying the capability. Where a business once needed to recruit and retain someone with years of trade experience, it can now achieve comparable output by investing in equipment and training an existing team member to operate it. That doesn’t remove the need for skilled people entirely – someone still has to set up, program and maintain the machine – but it changes the shape of the skills gap rather than closing it outright. This pattern holds across CNC routing, laser cutting and laser engraving, regardless of the specific manufacturing sector involved.

What This Looks Like in Practice

Consider a small UK sign-making or metal fabrication workshop that has struggled for two years to recruit a second skilled fabricator. Rather than continuing an unsuccessful search, the business invests in a laser cutting system and trains an existing team member to operate it over a matter of weeks rather than the years a manual apprenticeship would take.

The practical outcomes tend to follow a similar pattern. Lead times shorten because jobs no longer queue behind a single specialist. The business can bid for contracts it previously turned down due to capacity constraints. Overtime and agency staffing costs fall, since the machine covers volume that would otherwise require additional shifts or temporary labour. None of this requires the workshop to grow its headcount – it requires the right equipment and one or two trained operators.

When sourcing this kind of equipment, many UK manufacturers look to established European suppliers who can offer local delivery, service and warranty support rather than relying solely on long-lead-time imports from further afield. Virmer is a supplier of CNC laser equipment in Europe, and its role illustrates the kind of supplier relationship small manufacturers now factor into their equipment decisions – proximity, after-sales support and service response time carry as much weight as the machine’s specification sheet.

What Owners Should Weigh Up Before Investing

Automation is not a straightforward swap for a vacant role, and the decision carries its own set of trade-offs.

The upfront cost is the most obvious factor, and owners need to weigh it against realistic labour savings rather than best-case projections. Training time for existing staff, while shorter than a traditional apprenticeship, still needs to be budgeted into the transition – output typically dips for a few weeks while the team gets up to speed. Warranty and service support matter more than they might for other capital purchases, particularly since much of this equipment is sourced from EU-based manufacturers; a machine that’s down for three weeks awaiting a part can undo months of productivity gains. Space and power requirements also need checking early, as some equipment demands three-phase power or extraction systems a workshop may not already have.

Financing is rarely a barrier on its own. Leasing and asset finance are commonly used by UK SMEs for exactly this kind of capital equipment, spreading the cost in a way that mirrors the labour savings the machine is expected to deliver over time.

The Bottom Line

For UK manufacturing SMEs, automation is increasingly a response to the labour market rather than a pure efficiency upgrade. It doesn’t remove the need for skilled people, but it changes how many are needed and what their skills need to cover.

As the skills shortage persists – and the data suggests it will, given the sector’s ageing workforce and constrained apprenticeship pipeline – more small producers are likely to treat equipment investment as an alternative to hiring, not just a route to growth. The businesses that plan for this shift now, rather than reacting to it once a vacancy has gone unfilled for months, are the ones best placed to keep their order books moving.

Shares of defence companies, including ideaForge, Paras Defence, Data Patterns, Bharat Electronics (BEL), Hindustan Aeronautics (HAL), Bharat Dynamics, Mazagon Dock and Cochin Shipyard, fell up to 5% on Tuesday as investors booked profits following the previous session’s sharp rally.

The rally on Monday came after the Defence Acquisition Council (DAC) approved capital acquisition proposals worth about Rs 52,000 crore. The approvals span a range of procurements aimed at enhancing the operational capabilities of the Army, Navy and Air Force, including air defence systems, anti-drone technologies, surveillance equipment and unmanned warfare platforms.

Among individual stocks, Data Patterns declined 5% to Rs 4,390, while Paras Defence fell nearly 5% to Rs 1,294 on the BSE. ideaForge also dropped 5% to Rs 812, while Bharat Dynamics slipped over 2% to Rs 1,375. Mazagon Dock and Cochin Shipyard were down as much as 3% during the session.

Also read: DAC clears Rs 52,000 crore defence acquisitions, boosts drone and air defence capabilities

DAC Approval

The latest approvals span several indigenous and advanced defence platforms across the three armed services, with a focus on improving preparedness against emerging aerial and mechanised threats.
For the Indian Army, the DAC cleared the procurement of the Anti-Unmanned Aerial Vehicles (UAV) Electronic Warfare System ‘AKASH TARANG’, Man Portable Anti-Tank Guided Missile (MPATGM) Systems, Medium Range Surface-to-Air Missile (MRSAM) Weapon System, Very Short Range Air Defence System (V-SHORADS), Active Protection System for Tanks and the Jet-Based Kamikaze Drone System.

For the Indian Navy, approvals were granted for the procurement of the Multi-Influence Ground Mine (MIGM), Naval Shipborne Unmanned Aerial System (NSUAS) and the establishment of a Land-Based Testing Facility (LBTF) for Electric Propulsion Systems.
For the Indian Air Force, the council approved the acquisition of a Fixed-Wing Based High Altitude Pseudo Satellite (FW-HAPS), along with other proposals. According to the ministry, the FW-HAPS platform will provide persistent intelligence, surveillance and reconnaissance (ISR), telecommunications, and remote sensing capabilities, strengthening the Air Force’s operational reach and endurance.

What are experts saying?

“This is likely to accelerate order inflows and execution for defence companies, as a larger share of procurement contracts can now be approved directly by the armed forces,” domestic brokerage Motilal Oswal said.
The brokerage has maintained its ‘Buy’ rating on HAL with a target price of Rs 5,500, implying an upside of 24% from current levels. It expects the company’s revenue to grow 9% year-on-year, supported by healthy execution of its opening order book. Investors will closely watch updates on deliveries of the Tejas Mk1A and HTT-40 aircraft, the partnership with GE for engine manufacturing and the working capital cycle.

Read more: Lessons from Op Sindoor: DAC nod to pseudo satellites, air defence systems, jet-based drones

Motilal Oswal has also reiterated its ‘Buy’ rating on Astra Microwave. The brokerage expects revenue to rise 13% year-on-year in the first quarter of FY27, with execution likely to gather pace on the back of an order book of around Rs 2,600 crore. Key monitorables include fresh ordering across larger platforms, margin sustainability and export opportunities.

For Bharat Electronics, the brokerage has retained its ‘Buy’ recommendation with a target price of Rs 510, suggesting a potential upside of 23% from current levels. It expects revenue to grow 16% year-on-year, driven by the execution of the company’s opening order book of about Rs 74,000 crore. Analysts will monitor updates on major orders, including QRSAM, Uttam radars, next-generation corvettes, P75I submarines and the progress of the AMCA programme.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)