UK Manufacturing: Facing Change with Confidence

The UK’s manufacturing sector is evolving at pace. Once defined by heavy industry and long production cycles, it’s now driven by innovation, sustainability, and technology — but also challenged by complex risks that demand greater resilience and smarter risk management.

Despite ongoing pressures — from high energy costs and supply chain disruption to skills shortages and regulation — UK manufacturing remains a cornerstone of the economy. Contributing more than £217 billion to GDP and employing over 2.6 million people, it’s a sector that continues to adapt and innovate.

Technology at the Core

Manufacturers are embracing automation, robotics and AI to build efficiency and agility. More than half of UK manufacturers are now using AI or machine learning on the factory floor, and 55% have implemented some form of digital transformation across their operations.

The potential benefits are clear — predictive maintenance, improved quality control, streamlined logistics, and faster, more flexible production. But technology also brings new risks. As systems become more connected, exposure to cyber threats increases. Ageing infrastructure, inconsistent patching, and limited cybersecurity awareness can all lead to significant vulnerabilities.

At Vista, we help clients navigate this dual challenge: adopting technology for growth, while protecting operations and data integrity through robust risk management.

Building Resilient Supply Chains

Recent years have shown just how vulnerable supply chains can be. Geopolitical shifts, trade tensions and events such as the Red Sea crisis have prompted manufacturers to rethink sourcing and logistics. Many are now turning to nearshoring and friendshoring, with 69% planning to source most of their goods from the UK or neighbouring countries.

This trend brings opportunity — shorter lead times, improved control, and stronger collaboration — but also new dependencies. Business continuity planning, supplier diversification, and proactive risk assessment are key to ensuring resilience across the chain.

The Workforce Challenge

The manufacturing labour market remains under strain. With 64,000 vacancies currently open and a growing gap in technical and digital skills, many firms are facing recruitment and retention challenges. Experienced workers are retiring, and onboarding for new hires often lags behind operational demands.

Upskilling, knowledge transfer and structured training programmes are vital to maintaining productivity and safety. The use of AI to enhance training, automate repetitive tasks, and support predictive safety monitoring is already helping some manufacturers close the gap — but human expertise remains irreplaceable.

Sustainability and the Path to Net Zero

Manufacturing is responsible for around 18% of the UK’s greenhouse gas emissions, making decarbonisation a critical focus. Encouragingly, 92% of manufacturers now view net zero as a business priority, with many investing in energy efficiency, waste reduction, and circular economy models.

Digital tools, particularly AI and IoT, are helping manufacturers reduce emissions and improve resource efficiency. Yet sustainability also changes the risk profile — new materials, processes and technologies introduce fresh challenges that need to be understood and managed.

Managing a Complex Risk Landscape

The risks facing manufacturers today are interconnected — economic, operational, technological, and environmental. No single solution can eliminate them, but a proactive, data-led approach to risk management can make all the difference.

At Vista NW, we work with manufacturing clients of every scale to assess exposures, implement practical controls, and build resilience across their operations. From supply chain risks and cyber threats to energy management and sustainability, we help businesses see the bigger picture — and protect their future with confidence.