"Rising costs are pushing UK manufacturers dangerously close to an investment tipping point, with businesses warning that planned spending could be cancelled or moved overseas unless pressures ease. A new survey by Make UK, the manufacturing trade body, found that almost nine in ten industry leaders expect employment costs to rise this year, while two thirds anticipate higher energy bills. The findings underline mounting concern that the cost base for British manufacturing is becoming unsustainable."
"The survey of 174 senior manufacturing executives revealed that 65 per cent see rising business costs as one of the biggest risks facing the sector in 2026. Make UK warned these pressures are now "threatening to reach a tipping point", beyond which firms may be forced to scale back investment or relocate activity abroad. Confidence in the UK as a place to invest remains fragile."
Rising employment and energy costs are making the cost base for British manufacturing unsustainable and threatening an investment tipping point. A survey of 174 senior manufacturing executives found almost nine in ten expect employment costs to rise this year and two thirds anticipate higher energy bills. Sixty-five per cent identified rising business costs as a top risk for 2026. Just over four in ten manufacturers view Britain as an attractive investment destination, and Make UK forecasts sector contraction of 0.5% this year. Sixty-three per cent said the government's industrial strategy improved investment confidence, but fiscal uncertainty and potential tax or employment cost rises risk undermining planned investment.
Read at Business Matters
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