The UK manufacturing and production sector in 2025 sits at a crossroads. On one hand, firms grapple with rising costs, supply chain uncertainties and skills shortages; on the other, advances in automation, digital technologies and sustainability open new avenues for growth. Below, we explore the key trends shaping the industry and highlight the strategic importance of Environmental, Social & Governance (ESG) frameworks
Adaptability & Resilience
Rising energy prices, shifting government policies and softening demand are squeezing margins. According to the CBI’s July 2025 Industrial Trends Survey, UK manufacturing output was flat over the three months to July, with total new orders falling and cost pressures at their highest since early 2023 (CBI, 2025). Manufacturers are now investing in agile planning tools, scenario forecasting and workforce upskilling to navigate volatility.
Technology Adoption & Automation
Large and small firms alike are turning to automation and smart‑factory solutions:
- ERP & Digital Inventory: Affordable ERP systems are streamlining order processing and inventory control, driving productivity gains without major CAPEX (Orderwise, 2025).
- Predictive Maintenance & IoT: Digital sensors and analytics are helping predict equipment failures and reduce downtime.
- AI & Robotics: Manufacturers are also embracing AI in quality control and robotics in assembly processes (NatWest, 2025).
Sustainability as a Core Driver
Sustainability is no longer a buzzword, it’s a strategic imperative. The UK government’s net-zero 2050 commitment and changing consumer preferences are forcing businesses to rethink operations:
- 46% of manufacturers plan to invest in sustainability for commercial reasons over the next five years (Orderwise, 2025).
- According to the U.S. EPA, sustainable manufacturing involves creating products through economically-sound processes that minimise negative environmental impacts while conserving energy and resources (EPA, 2024).
- Simple upgrades, like energy-efficient machinery or improved waste reduction, offer ROI and customer appeal.
Customisation & On-Demand Manufacturing
With demand for bespoke products rising, manufacturers are leveraging digital tools to streamline design, quoting, and order fulfilment. Technologies like digital twins and 3D printing are helping firms respond quickly to customer needs (NatWest, 2025).
Cost Pressures, Trade Uncertainty & Growth Outlook
- Tariffs: British car manufacturers can now export to the US at a significantly reduced 10% tariff rate- down from 27.5%
- Government Support: The 2024 Autumn Budget introduced stable R&D tax credits and capital expensing, encouraging investment (NatWest, 2025)
- Optimism: Despite ongoing uncertainty, over 50% of UK manufacturers expect growth in 2025 due to new product launches and efforts to stimulate export demand (NatWest, 2025).
Bridging the Skills Gap
- The UK is facing a manufacturing talent shortage that’s threatening growth:
- There are currently 61,000 open vacancies in UK manufacturing, with over £6 billion lost annually in output due to unfilled roles (Make UK, 2024)
- 26218724 of the engineering workforce is over 50, pointing to a looming retirement cliff (ECITB Workforce Census, 2024)
- The Royal Academy of Engineering’s “Engineers 2030” report highlights critical gaps in digital, AI, and sustainability skills.
Women in Manufacturing
Women make up just 26.1% of the UK manufacturing workforce, despite accounting for nearly 50% of the total labour market (CIIP, University of Cambridge, 2024).
The Women in UK Manufacturing 2024 report calls for:
Industry pledges to foster inclusion
- Targeted efforts to address labour shortages
- Real-life tools and frameworks to drive diversity.
ESG in Manufacturing: From Framework to Action
ESG—Environmental, Social & Governance—is more than regulatory compliance; it’s a strategic framework for sustainable success. As described by Tracera, ESG principles help manufacturers:
- Manage energy, waste, and emissions
- Enforce ethical decision-making
- Ensure worker safety and equitable labour practices
- Establish transparent governance
- Reduce supply chain risks.
Amy Ryu, Head of Product at Tracera, notes:
“The manufacturing sector holds a unique position in driving sustainability due to its direct control over resource-heavy production processes and their potential for influence on supply chains.”
We can point to our work with Colas Rail UK as a prime example of a company embracing ESG and Governance. We had the privilege of assisting them with the design of their dedicated web page on this very topic, which showcases their commitment to sustainability and ethical practices. This project allowed us to see their strategy up close and understand how they are integrating these principles into their core business.
Furthermore, we were responsible for the complete design of their latest corporate brochure, titled “Enabling The Future Sustainability of Rail.” This publication is a testament to their dedication to a more sustainable future and includes dedicated pages that delve into their Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) initiatives.
How Frost Creative Can Help Your Manufacturing Business
At Frost Creative, we specialise in:
- Strategic Brand Development: Tailored visual identities for industrial and manufacturing sectors
- Digital Design & UX: Websites that are responsive, accessible, and optimised for business audiences
- Content & Messaging: Distilling technical topics into clear and impactful language
- Employer Branding: We help manufacturers address the skills gap by building authentic, compelling employer brands that attract the right candidates. Our work with Colas Rail is a great example—developing a distinct brand narrative and visual identity that connects with skilled professionals and reflects real employee values.
Frost Creative is ready to help you design a better future.