08/01/2026
UK manufacturing is starting 2026 with cautious momentum - a few green shoots, but still plenty to watch. 🔧📈
What stood out this week:
Factory activity: the UK Manufacturing PMI printed 50.6 for December (a 15-month high), with output rising for a third month and new orders ticking up.
People & costs: industry surveys continue to flag labour-cost pressure and softer hiring plans, even where output/orders are holding up.
Automotive demand: the UK new car market breached 2m registrations in 2025, with almost one in four buyers going electric, while the van market shrank overall despite EV growth. ⚡🚗
Energy remains the headline constraint: the government’s electricity-cost relief consultation (BICS) is open, worth a look for energy-intensive manufacturers and key supply-chain businesses. ⚡
Month ahead watchlist:
12 Jan: Make UK’s Executive Survey 2026 publication (signals on confidence, investment, constraints).
19 Jan: BICS consultation deadline.
5 Feb: next Bank of England rate decision (borrowing costs + capex sentiment).
From the conversations we’re having around the supply chain (including at Tarvin Precision and with our Made in Britain network), the pattern feels consistent: domestic demand is steadier, export sentiment is still “wait-and-see,” and everyone’s watching cost drivers closely.
Question for your network: what are you seeing right now - orders, lead times, or hiring?
✅ Need ISO 9001 or AS9100 machining and assembly? Speak to us or send an RFQ today:
https://tarvinprecision.co.uk/message/
https://tarvinprecision.co.uk/quote/