45 www.drives.co.uk June 2025 The UK’s manufacturing sector is at a turning point, as the recent trade agreements with India, the US and the EU present significant opportunities for growth. These tariff reductions and streamlined trade processes will not only boost exports, but also accelerate the adoption of automation technologies across UK industry. For manufacturers, this is more than just an economic shift – it is a transformation that will define the future of British industrial automation. The UK’s agreements with India and the US have already shown promise for manufacturers. The India-UK Free Trade Agreement (FTA) will cut tariffs on 90% of UK exports to India, with 85% becoming fully tariff-free over the coming decade. Critical sectors such as automotive, aerospace, electrical machinery and medical devices, will benefit from reduced costs, making UK exports more competitive in one of the world’s fastestgrowing markets. Similarly, the USUK tariff reductions have lifted significant barriers on British steel and automotive exports, reversing punitive tariffs imposed under previous trade policies. With these reductions, British manufacturers can re-allocate funds that they would have spent on tariff costs toward modernisation efforts – particularly on automation, robotics and AIdriven production. The new EU-UK trade deal introduces several critical measures that will ease trade friction, especially in sectors that rely on fast-moving goods and high-value exports. The reduction in red tape for food and drink exports, protection for British steel, and alignment on carbon tax policies, will make it easier for UK manufacturers to compete in the EU market. One of the most promising aspects of the deal is its indirect impact on automation investments. By reducing uncertainty surrounding exports and lowering trade costs, manufacturers can pivot toward smart production methods that improve efficiency and scalability. This deal signals stability – something UK firms have been eager for since Brexit. With these trade agreements in place, UK manufacturers must now focus on automation to fully capitalise on the new market opportunities. The global manufacturing landscape is shifting toward Industry 4.0, where automation, digitalisation and AI-driven production define success. The India-UK and US-UK deals create stronger incentives for automated production lines, as manufacturers seek to satisfy growing demand, while maintaining cost efficiency. The EU-UK trade deal reinforces this by encouraging sustainable production models – an area where automation plays a crucial role. With carbon taxes looming across industries, investments in energy-efficient robotics, AIdriven predictive maintenance, and digital supply chains, will be pivotal for survival. The UK industrial automation market will probably experience a surge in investment, driven by three key factors. First, export competitiveness: with lower tariff barriers, manufacturers will focus on speed, scalability and efficiency, driving demand for robotics, AIdriven quality control, and automated logistics. Second, sustainability mandates: automation will be central to green manufacturing, as companies aim to cut waste and optimise resource usage in line with international trade agreements. And last, but not least, AI and digital integration: Industry 4.0 technologies will dominate UK manufacturing, with AIdriven predictive maintenance, machine learning-powered quality control, and smart factory analytics becoming standard. These agreements are not just about trade; they set the foundation for a new era of technologically advanced UK manufacturing. British firms that embrace automation now will be poised to take a lead in efficiency, innovation and competitiveness. These trade deals mark a turning point for UK manufacturers. The opportunity to expand into global markets, streamline processes, and re-invent production through automation is now more tangible than ever. The next decade will be defined by how quickly British manufacturers adapt to this shift. Those that invest in automation and AI-driven production, will secure their place in the future of industry, while those that resist may find themselves outpaced by international competitors. The UK manufacturing sector has always been a powerhouse of innovation. With the right strategies, it is set to become a global leader in automated production and Industry 4.0 adoption, positioning itself at the forefront of advanced manufacturing in an increasingly digital world.. n * Gambica is the trade association for the automation, control, instrumentation and laboratory technology sectors in the UK. You can get in touch with Nikesh Mistry on 020 7642 8094 or nikesh.mistry@gambica.org.uk, or via the Gambica Web site: www.gambica.org.uk Trade deals: a golden opportunity for UK manufacturers The UK’s recent trade agreements with India, the US and the EU present extremely attractive opportunities for UK manufacturers, argues Nikesh Mistry*, Gambica’s sector head for automation. To capitalise on these opportunities, now is the time to invest in advanced manufacturing technologies, he adds. ‘These trade deals mark a turning point for UK manufacturers. The opportunity to expand into global markets, streamline processes, and reinvent production through automation is now more tangible than ever.’
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