Manufacturing change
High energy costs, global tariffs, innovation, skills, decarbonisation and strategies for growth were all key topics at the National Manufacturing Conference 2026.
Credit:bernardbodo
5 March 2026
Members of the manufacturing sector stretching across multiple industries, regions and countries, gathered for the annual manufacturing convention at QEII in Westminster this week.Equipping the sector for uncertainty was a steady theme on the day. Long-term host, journalist and engineering champion, Steph McGovern, opened the event and ushered in a long line of speakers, from industrialists to manufacturing innovators, journalists and politicians to help businesses navigate what is a turbulent time for most sectors.Jon Sopel, broadcaster and author gave an overview of the US and Israeli war with Iran and the current geopolitical crisis. Sopel gave some broader political and economic predictions and took a wider look at global tariffs which continue to impact stability, operations and strategic advancement for many companies, as well as US foreign policy and its relationship with the UK.On a national level, skills shortages, unemployment and investment in training were persistent topics as well as future planning and innovation and the UK’s industrial strategy and advanced manufacturing plans in the face of rapidly advancing technology and external threats.
Stephen Phipson, CEO of Make UK Stephen Phipson, CEO of Make UK passionately talked about the state of the sector over the organisation’s 130 year history. He celebrated innovation and successes in a sector that accounts for £220 billion of output, 2.6 million jobs, 42% of the UK’s total exports and 48% of its research and development.Phipson acknowledged the rising costs of doing business, from energy costs to tariffs and the impacts of global instability.He highlighted the sector’s role in ensuring security and resilience in light of shifting foreign policies and noted the value of the UK’s world leading companies in high value sectors and that it had become internationally strong in automotive, electronics, chemicals, defence and pharmaceuticals.Phipson stated that UK manufacturing has never been so important in this new landscape where the rules of international trade are being challenged.“We need to not just reset but build upon and rebuild our relationship with Europe. We have got to be part of Europe and it’s got to be much more integrated than we are at the moment. It’s not just a matter of removing trade barriers – it’s about ensuring positive mutually beneficial relationships that span across defence to trade policy. The axis of the world order has shifted and both government and businesses are going to have to shift with it and change,” he said.Phipson also spoke on the economic importance of government stability for business confidence more broadly and the sector’s growth.“Whatever you think about politics and regardless of what your political persuasion is, we cannot keep the doors of number 10 revolving in short order. Stability is absolutely important for us. We’ve had seven prime ministers since the iPhone was invented. The previous seven lasted 43 years. Instability is the enemy of business investment so maintaining stable political systems is going to be absolutely vital,” he added.Phipson called on a faster pace of change from the government and a “need to be bolder” as well as accelerated delivery of the industrial strategy. While skills development and support for SMEs formed another big part of his address.Giving the main political keynote was Secretary of State for Business and Trade, Peter Kyle, who started off by asking all companies with staff in the Middle East region to tell employees to register their presence and listen closely to any Foreign Office travel advice.
Kyle explained how his department is working to manage disruption to trade and supply chains. He talked of resilience, competition and “championing the next generation of manufacturing” and cited strategies that had been launched and claimed investments in areas such as electrification of vehicles, plants, batteries, electric motors and hydrogen fuel cells.“Our competition is racing to secure industrial supremacy. They are investing in smart factories. In advanced propulsion. In robotics. And we have got to keep up. In this world, securing Britain’s transition to next generation manufacturing is not an option. It’s a strategic imperative. But to do it we need to look at how things are designed, made and sold around the world. In other words: conception, production and utilisation,” he said.Looking at conception and how things are designed, Kyle noted that in the ‘next generation economy’ value is increasingly captured at the design stage.“Artificial intelligence, digital twins, advanced simulation, and data-driven engineering are transforming how products are imagined. Long before they are ever built. The factory of the future begins not on the shop floor, but on a high-performance computer.”But conception alone is not enough. “We must modernise production. We must maximise utilisation,” he chanted.“Right across the world, advanced economies are reindustrialising. The European Union is investing heavily in semiconductor resilience. In the US, Congress has passed landmark legislation. It is onshoring critical supply chains for manufacturing. And in East Asia, economies continue to lead in robotics density and advanced electronics production. For us to compete, our factories can’t be relics of the past. They have to be models of the future.”Throughout the morning and afternoon, breakout sessions covered everything from the Employment Rights Act to health, safety and wellbeing at work and how to protect and prepare people for change. Other work streams took a deeper look at the skills landscape, from the value of apprenticeships to training support and investment as well as future-proofing, greener manufacturing trends and innovation.The later sessions explored strategies for growth – including an in-depth panel talk on the future of Britain’s steel industry and its global role amid a tariff war and another on the circular energy economy and opportunities for the sector.Rounding up the conference attendees were treated to an inspirational keynote by former combat helicopter pilot Sarah Furness who aptly talked about courageous leadership under fire.
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Stephen Phipson, CEO of Make UKRelated reading
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- UK manufacturers recalibrate trade strategies as tariffs bite
- Steph McGovern launches new Teesside University scholarship to support women in engineering
- UK manufacturing climbs one place to 11th in global rankings
Kyle explained how his department is working to manage disruption to trade and supply chains. He talked of resilience, competition and “championing the next generation of manufacturing” and cited strategies that had been launched and claimed investments in areas such as electrification of vehicles, plants, batteries, electric motors and hydrogen fuel cells.“Our competition is racing to secure industrial supremacy. They are investing in smart factories. In advanced propulsion. In robotics. And we have got to keep up. In this world, securing Britain’s transition to next generation manufacturing is not an option. It’s a strategic imperative. But to do it we need to look at how things are designed, made and sold around the world. In other words: conception, production and utilisation,” he said.Looking at conception and how things are designed, Kyle noted that in the ‘next generation economy’ value is increasingly captured at the design stage.“Artificial intelligence, digital twins, advanced simulation, and data-driven engineering are transforming how products are imagined. Long before they are ever built. The factory of the future begins not on the shop floor, but on a high-performance computer.”But conception alone is not enough. “We must modernise production. We must maximise utilisation,” he chanted.“Right across the world, advanced economies are reindustrialising. The European Union is investing heavily in semiconductor resilience. In the US, Congress has passed landmark legislation. It is onshoring critical supply chains for manufacturing. And in East Asia, economies continue to lead in robotics density and advanced electronics production. For us to compete, our factories can’t be relics of the past. They have to be models of the future.”Throughout the morning and afternoon, breakout sessions covered everything from the Employment Rights Act to health, safety and wellbeing at work and how to protect and prepare people for change. Other work streams took a deeper look at the skills landscape, from the value of apprenticeships to training support and investment as well as future-proofing, greener manufacturing trends and innovation.The later sessions explored strategies for growth – including an in-depth panel talk on the future of Britain’s steel industry and its global role amid a tariff war and another on the circular energy economy and opportunities for the sector.Rounding up the conference attendees were treated to an inspirational keynote by former combat helicopter pilot Sarah Furness who aptly talked about courageous leadership under fire.
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