After a mixed but improving period for UK manufacturing, including the UK steel and fastener industry, 2026 is shaping up to be another year where businesses that plan ahead will be best placed to stay competitive. Although the UK’s economy shrank, the
UK government has reported manufacturing industry did, however, see an increase in output by 0.5% with stronger domestic demand.
Below are key priorities manufacturers should keep an eye on for 2026.
Manufacturers are increasingly adopting digital technologies, including AI, automation and connected systems, to improve efficiency, reduce errors and support better decision-making.
Industry analysis highlights that such technology is not only cutting down admin tasks but also gaining faster, safer and predictable manufacturing solutions.
The IFR has reported that modern intelligent manufacturing systems emphasise adaptability and advanced automation, with more than 4 million industrial robots in factories globally as of 2024, reflecting the sustained adoption of advanced automation and smart tech. While new technologies offer significant benefits, the skills gap remains a major barrier;
a UK government review found that workforce skills shortages are cited by many firms as a key challenge to AI adoption and digital transformation.
Reinforcing supply chains remains a core priority for manufacturers entering 2026, especially across the UK steel and fastener industry, where reliability, traceability and lead times are critical. Recent sector insights show that
2026 will see firms focusing on reinforcing resilience after years of disruption, including geopolitical tensions, logistics challenges and pandemic-era impacts connecting suppliers to demand more closely. Resilient supply chains now often combine shorter, more controllable routes with diversified sourcing and better planning tools (otherwise known as Nearshoring).
3. Sustainability & Green Transition
Sustainability continues to shape operational thinking, and a growing number of manufacturers are embedding circular economy principles into their plans for 2026. A circular economy model aims to reduce waste and keep materials in use through reuse, recycling and smarter production design, which can also deliver cost efficiencies and resilience in long supply chains, a reports explain.
The government emphasise that circular practices such as minimising raw material use and developing regenerative processes not only support environmental goals but also help protect firms from volatile input prices. Industry experts have expressed that manufacturers may face challenges in integrating advanced production methods and managing complex supply chains, but embedding sustainable practices early can deliver long-term resilience and market advantage.
4. Market & Workforce Pressures
Market expectations for faster, more flexible production are increasing alongside persistent cost pressures for manufacturers in 2026. Even as inflation cools and broader economic indicators stabilise, firms are
reported to continue to face elevated costs for energy, materials and labour, requiring tighter cost control and efficiency improvements.
At the same time, the rapid adoption of digital and AI-related tools has highlighted a skills gap: many manufacturers report difficulty recruiting and training staff with the right capabilities for new technologies, which can limit the pace of digital transformation. This has driven a focus on workforce development, upskilling programmes and more flexible training pathways so that
employees can fully support technology integration and continued growth.
Looking ahead to 2026
The global environment remains uncertain, and the manufacturing sector will continue to adapt as regulations, technologies and workforce availability evolve. Staying informed and flexible will be essential as new opportunities and challenges emerge.
At Clevedon, we remain committed to staying up to date with developments across the manufacturing industry, ensuring we operate efficiently, responsibly and in a way that continues to add value for our customers. We will continue to share insights and updates through our website as the industry moves forward.