Building Resilience in 2026: UK Manufacturing Shows Positive Growth in Make UK’s Q1 Report

UK manufacturing has entered 2026 demonstrating remarkable adaptability. While there are undeniable hurdles, including rising costs and global volatility, the latest data points to a sector that is actively finding ways to expand and invest.

Make UK’s Q1 2026 Manufacturing Outlook report highlights that despite the growing pressures of volatile external markets and rising employment costs, the sector remains fundamentally resilient. Production volumes have expanded, international trade remains robust, and the sector is forecasted to return to a modest growth of 0.9% this year.

Key Findings: A Picture of Cautious Optimism

The Q1 2026 report reveals a complex but encouraging picture of recovery for UK industry:

• Output continues to expand: The output balance increased significantly from +13% last quarter to +21%, marking a full year of positive output balances for the sector.
• Total orders are growing: The balance for total orders improved to +21%. While domestic demand slowed to +9%, export orders continue to carry the momentum, outperforming the domestic market with a robust positive balance of +18%.
• Investment stays actively stable: Investment intentions reported a strong balance of +20% and have remained consistently positive since late 2022, which is an excellent sign for future capacity, automation, and maintenance.
• Employment prospects inch upward: The balance for employment improved slightly from +3% to +8%, aligning with an increase to 52,000 live vacancies across the sector as companies look to upskill and grow.
• Prices rise while margins tighten: Inflationary pressures are heating up; the balance for UK prices jumped from +14% to +31%, and export prices rose to +34%. Unfortunately, this heightened pricing has not improved profitability, with UK margins falling to -6% as businesses absorb higher operational costs.

Rising Costs and Global Uncertainty

Manufacturers are continuing to face intense cost pressures, particularly from energy and employment. At the same time, escalating tensions in the Middle East risk pushing oil and gas prices higher, destabilising global supply chains and access to critical materials.

For UK manufacturers, any sustained increase in energy prices could place additional pressure on already squeezed margins. The report notes that some firms are already seeing gas prices surge by more than 50%, feeding into higher electricity and raw material costs.

How Anopol’s Electropolishing Supports Manufacturing Resilience

In a climate where margins are tight and operational efficiency is paramount, investing in the longevity, quality, and performance of critical components is a strategic necessity. This is where Anopol’s expertise becomes a vital asset to the UK supply chain.

Sectors like Food & Drink and Pharmaceuticals—both highlighted as key UK subsectors in the Make UK report —rely heavily on pristine, durable equipment. As the UK’s leading electropolishing specialist, Anopol helps manufacturers enhance the corrosion resistance, hygiene, and surface finish of their stainless steel components.

By vastly extending the lifecycle of these critical parts, our electropolishing processes help manufacturers reduce long-term maintenance costs, minimise downtime, and ensure they remain competitive even when economic conditions are challenging. When replacing equipment is costly, treating it right the first time is the ultimate efficiency hack.

Looking Ahead

While production edged up in the first quarter of 2026, the recovery requires careful navigation. Now, more than ever, the sector requires a policy environment that encourages investment and innovation. A clear and consistent industrial strategy is critical to giving businesses the confidence they need to invest, strengthen supply chains, and compete in a volatile global environment.