Survey finds companies optimistic about growth but rising costs threaten progress
Make UK says warning lights are ‘flashing red’(Image: PA)
The UK’s competitiveness as a manufacturing and investment destination is under severe threat, with warning lights now “flashing red”, according to a new report. Whilst a survey of senior manufacturing executives revealed some cautious optimism that business opportunities this year would outstrip risks, Make UK’s research simultaneously highlighted mounting concerns.
The study warned that escalating business costs facing manufacturers are dangerously close to reaching a “tipping point”. The consequences could be dire, with investment plans at risk of being scrapped or relocated abroad, the report cautioned.
Make UK’s chief executive Stephen Phipson acknowledged the sector’s fighting spirit, saying: “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, expanding markets and, most crucially, their people, will continue to thrive.
“But, they can only do this if they are operating in the most favourable business environment and, despite the commitment to an industrial strategy, not only is growth anaemic but the warning lights are now flashing red on the UK as a competitive place to manufacture and invest.
“The Government promised significant change – now is the time to deliver it.”
The findings revealed that over half of the 174 businesses surveyed believe a comprehensive industrial strategy and sector-specific plans would prove most influential for growth this year, with nearly two-thirds prepared to accelerate investment in response. A Government spokesperson stated: “We are pleased businesses are positive about our modern industrial strategy, which will give them the backing they need to continue to grow in 2026.
“We know the cost of energy is one of the greatest challenges facing industry – and this Government is acting to tackle it, with thousands of manufacturing businesses to see their electricity bills cut by 25% through the British Industrial Competitiveness Scheme.”
