MakeUK/BDO survey applauds Q4 growth but says worries ahead
14 Dec 2025
Make UK issued a relatively upbeat report on UK manufacturing for the final quarter of 2025, with both domestic and export orders having grown.
The latest Make UK/BDO Manufacturing Outlook survey said output growth remained positive following strong performance from both categories.
But while investment intentions also appeared encouraging, the industry body listed significant concerns for current performance and the period ahead.
Senior economist at the organisation James Brougham stated: “After a difficult twelve months when manufacturers have faced multiple challenges across all fronts, it’s a relief to see the year ending on a more positive note.
“However, the prospects for any form of significant growth remain remote and, with rising employment costs and any help on energy still well over the horizon, companies will have little inclination to fill up the punch bowl to start the party.”
The survey of 263 companies between 27 October and 20 November, suggested that, despite the latest results, business confidence had dropped for the second consecutive quarter.
Pre-Budget speculation also appeared to have impacted recruitment intentions, which weakened amidst warnings of tax rises and increased labour expenses, said Make UK.
Richard Austin, head of manufacturing at survey co-author BDO, acknowledged that the Budget had resulted in relief from businesses with regards to investment, green transition and skills measures but said it had fallen short on addressing key concerns from industry.
“This year has been a volatile one for UK manufacturers. Whilst the last six months have shown tentative signs of growth in output and orders, the sector is lacking the confidence and assurance they need to put their hands in their pockets and invest,’ he said.
“Businesses need decisive action if growth is to be realised.”
Make UK also published analysis outlining the possible benefits of raising public and private sector investment to match OECD average levels.
In the decade to 2024, said the association, the OECD average investment intensity – investment as a share of GDP – was 22%, compared with just 17% for the UK.
If the Government set a target of matching the OECD percentage in10 years’ time, this would attract around £670 billion, pointed out the organisation.
Of this, it added, an estimated 60% would come from the private sector, with 11% of that figure, or £44 billion, provided for manufacturing.
