“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
This is a modal window.
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.
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
On 26 March 2025, the Chancellor of the Exchequer Rachel Reeves will deliver a statement in Parliament providing an update on the Government’s growth mission, alongside the publication of an economic and fiscal forecast from the Office for Budget Responsibility (OBR).
Will the UK have enough energy to power its growth aspirations?
Understanding business leaders’ priorities for a renewed industrial strategy, and undertaking new economic analysis to assess the potential impact of improving the UK’s performance in key areas.
From productivity and growth to organisation-wide transformation, find out how AI helps solve problems and unlock opportunities for business and society through a human-led, tech-powered approach.
Deals Regional Lead, UK Leader of Industry for Industrials & Services, Manufacturing and Automotive, PwC United Kingdom
Tel: +44 (0)7809 551517
