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UK Manufacturing Growth in 2026

It's not all doom and gloom! Whilst we are suffering with shortages and supply chain issues, investment in UK manufacturing is going gang-busters. Read more here.

UK Manufacturing: Growth Where It Counts

It is hard to ignore the noise around UK manufacturing right now. Rising costs, supply chain instability and global uncertainty are all real, and they are putting pressure on margins and planning across the sector. But here is the part that is being missed, behind the headlines, the start of 2026 has delivered a steady stream of investment, expansion and long-term commitments to UK manufacturing, some serious capital, job creation and infrastructure that point to confidence in the UK as a place to build, innovate and scale.

The Manufacture recently publish a list of 'wins' we wanted to share with you. 

Key UK Manufacturing Highlights – Q1 2026

  • AstraZeneca committed £300m to its Macclesfield plant, including a £100m investment specifically into manufacturing capability and site upgrades, reinforcing the UK’s role in advanced medicines production

  • McLaren Automotive Ltd expanded operations with a new facility at the McLaren Technology Centre in Woking

  • BAE Systems announced plans to recruit 2,300 apprentices, graduates and undergraduates

  • Cummins Inc. is investing $50m into its Daventry power systems plant

  • AESC officially opened a new battery manufacturing plant in Sunderland

  • Airbus Helicopters secured a £33.6m Ministry of Defence contract to support the UK’s H145 fleet

  • Nissan Motor Corporation began production of the new electric LEAF in Sunderland following a £450m investment

  • Diageo opened a £73m Guinness Open Gate Brewery in London

  • Airbus launched a new central manufacturing hub at its Broughton site

  • Safran announced plans for its first Research and Technology Centre outside France, based in the UK

  • McMurtry Automotive Limited opened a new multi-million pound factory in Gloucestershire

  • FUJIFILM Biotechnologies completed a £400m expansion of its Teesside facility

  • Suntory Beverage & Food GB&I committed £25m to upgrading its Coleford factory

  • Cummins Inc. is expanding its engine manufacturing plant in Darlington

  • Leonardo secured a £1bn contract to build 23 helicopters in Yeovil, protecting over 3,000 jobs

  • Rolls-Royce is investing £21.3m to double capacity at its Rotherham blade casting facility

  • Vestas plans a £216m manufacturing plant in Scotland, creating around 500 jobs

  • Lockheed Martin is building a new £85m satellite manufacturing facility in Scotland

  • Airbus and Rolls-Royce secured a multi-billion pound order from Atlas Air for A350F aircraft

  • Stellantis is investing an additional £50m into its Ellesmere Port plant

  • British Steel is ramping up production following a £70m export contract

  • GE Aerospace is investing over €110m and creating more than 1,000 jobs across UK and European sites

The Bottom Line

There is no point pretending the market is easy, it is not. Cost inflation, volatility and global disruption are all making life harder, particularly across procurement and supply chains.

What Q1 does show clearly is that investment is being made, global manufacturers are still choosing the UK and businesses are still backing long-term growth.

That said, the reality on the ground is mixed. We are seeing some contract manufacturers in our sector genuinely struggle under the weight of these pressures and it is likely that some will not make it through to the end of the year. The gap between those who can navigate this environment and those who cannot is widening. Customers are not just looking for capacity, they are looking for partners they can depend on.

Texcel, who are going from strength to strength, we are stable, capable and a committed UK manufacturing partner, focused on long-term relationships and delivering with confidence, even when the market is anything but predictable.

 
 
 
 
 

 

 

 

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