The nature of manufacturing demand is also changing. Many of today’ s projects require specialised, mid-volume production rather than mass-produced, commoditised goods. Custom battery packs for OEMs are a good example. Whether for UAV / drones, e-mobility, robotics, medical devices or safety equipment, these solutions often need to be designed around the application rather than bought off the shelf. This kind of work benefits from a location with strong engineering expertise, responsive design support and the ability to move quickly from concept to production- not just the lowestcost manufacturing site.
This helps explain why some of the UK’ s traditional disadvantages are starting to fade. Wage differences matter less when speed, resilience and design capabilities are the priority. When those costs are offset by shorter lead times, easier oversight and more flexible delivery to Western markets, the UK starts to look a more reliable and affordable base in practical terms.
It is tempting to dismiss this as a temporary swing brought about by current trade wars and geopolitical
tensions, but the underlying direction of travel suggests otherwise. The risks of long-distance supply chains are not going away. If anything, they are likely to intensify as countries compete to secure domestic manufacturing and protect critical infrastructure. For certain strategic industries, the UK is better positioned today than it has been for decades.
Trying to rival China on sheer scale would be unrealistic. Instead, the UK needs to position itself as a dependable, cost-competitive base for mid-volume production that can supply the US and EU quickly and reliably. For companies choosing their next supply partner, that mix of reliability, cost control and speed to market makes the UK a serious contender.
The UK may have slipped to 11th in global manufacturing output rankings( MAKE UK, 2025), but that does not diminish its relevance. If anything, it underlines the need to leverage the capabilities that remain. Skilled engineering talent, trusted regulatory frameworks and strong transatlantic trade links exist, especially in long-established manufacturing regions such as the North East of England. When risk, speed and quality are weighted alongside cost, the UK’ s offer looks stronger than its headline ranking suggests.
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Issue 77 PECM 11