“Across the sector there's a palpable sense of optimism and resilience for 2025, fuelled by hopes of increasing clarity on the proposed UK industrial strategy. We've also seen a decisive shift towards technology adoption as manufacturers acknowledge its power to transform operations and boost productivity.”
Cara Haffey, Leader of Industrials and Services, PwC UK
Those feeling optimistic are eyeing the opportunity: almost one third of manufacturers (29%) are looking to technology, cloud and artificial intelligence (AI) to succeed in 2025, aiming to boost productivity and reduce overheads.
And with almost half of manufacturers looking to expand their product portfolio in 2025, it’s encouraging to see innovation isn’t being hampered by cost pressures. Investing in products will open new revenue streams for businesses, and when combined with advances in digital technology, there’s an opportunity to reduce production faults and costs, too.
Innovation is at the heart of manufacturing, and the workforce has highly transferable skills. As manufacturers look to roll out new technology and upskill their people with digital capability, maintaining those human-led skills such as critical thinking, creativity and judgement will be crucial.
And as manufacturers accelerate decarbonisation efforts, green jobs and capabilities will continue to play a key part in future innovation. Demand for these roles is continuing to grow, with the sector posting a 29% increase in green jobs in the past year. When coupled with energy price volatility, the imperative to improve energy efficiency is high.
As we support the Executive Survey for a further year, it’s encouraging to see the resilience of the UK manufacturing sector. While the impact of the Budget may hold back some investment, leaders who successfully balance cost control measures with forward-looking investments in technology, skills and sustainability will secure their future.
Priorities for manufacturers in 2025
Managing cost, boosting productivity
With cost pressures top of the agenda for manufacturing leaders, what steps can they take in response?
Two-thirds will look to pass on costs to consumers, and a similar amount plan to focus on productivity improvements.
Rising costs have seemingly accelerated the productivity imperative, with 68% of manufacturers citing this as a key way to fuel growth and fund the tax burden. The adoption of technology, including AI and Cloud, will play a significant role in automation, and the benefits stretch across the value chain – from improving products to reducing waste.
Energy efficiency will also continue to be a priority into 2025: achieving the tandem goals of moving towards net zero emissions while reducing the overhead cost of rising energy bills.
So, as manufacturers look to remove cost and carbon from operations, they should also embrace the technology that enables productivity gains.
Source: Make UK Executive Survey 2025
Investing for growth
Manufacturers must balance financial pressures with making the most of growth opportunities.
To succeed in 2025, almost half of manufacturers are looking to expand their product portfolios. Innovation is at the heart of the sector, and as we transition towards a green economy, driven by emerging technology, innovation will continue to be a critical lever for growth.
Manufacturers will also look to tap into new markets in 2025, with 37% planning to export to new countries in the year ahead, up from 23% last year.
And almost one third think new technology, including Cloud and AI will present an opportunity. Manufacturers are poised to reap the benefits of deploying technology to unlock growth: increased productivity, improved products, reduced waste and labour efficiencies.
Source: Make UK Executive Survey 2025
Industrial Strategy
In preparation for the year ahead, manufacturers are considering what the government’s Industrial Strategy means for them. And over half agree – or somewhat agree – that the strategy will boost their investment plans.
This is a promising signal. And manufacturers are looking to policy makers for greater certainty and stability to create an environment for growth.
While the strategy presents a positive vision for the UK's economic future, its success will depend on effective implementation, consistent policy support, and a favourable global economic context. And that might require a new approach: one that has a clear plan and long-term commitment and transforms how government, business and private equity collaborate to unlock the UK’s full economic potential. Explore our Framework for Growth to find out more.
Source: Make UK Executive Survey 2025
Contact us
UK Leader of Industry for Industrials & Services, Manufacturing and Automotive lead, Private Business leader for PwC Northern Ireland, M&A Deals Partner, PwC United Kingdom
Tel: +44 (0)7809 551517
