44 February 2026 www.drivesncontrols.com As we’re now well into 2026, the manufacturing sector finds itself energised by “disruptive” technologies, challenged by tightening regulations, and guided (at last) by a clearer national industrial strategy. Yet beneath the noise of innovation lies a more grounded truth. Progress depends not solely on chasing new tools, but more on applying the right technologies to the right problems, while keeping pace with legislative and regulatory change. The manufacturers who will thrive in 2026 will be those who resist the pressure to adopt technology for technology’s sake. They will focus instead on building layered, interoperable systems that combine the fundamentals of connectivity, data hygiene, cybersecurity and process discipline, while only using advanced tools that add genuine value. Artificial intelligence continues to dominate the headlines, and for good reason. AI‑driven optimisation, predictive maintenance, autonomous quality control, and generative design are no longer fringe concepts; they’re mainstream enablers of productivity. But the danger is obvious. Too many organisations are tempted to “tick the AI box”, rather than solve real problems. Deploying AI where a simple sensor, a well‑designed workflow, or a software upgrade would suffice, is not transformation but simply distraction. AI is powerful, but it is not a substitute for good engineering. This year also marks a turning point for both SMEs and large manufacturers as new regulations come into force. From strengthened sustainability reporting requirements, to stricter cyber‑resilience standards, compliance is no longer a side project. For large manufacturers, these regulations add complexity but also create opportunities to standardise, streamline, and lead supply‑chain expectations. For SMEs, however, the burden is heavier. Many will require financial, technical, and advisory support to meet new obligations without diverting resources away from growth and innovation. The gap between organisational sizes becomes more apparent as without accessible pathways into digital transformation – including clear use cases, skills support, and tailored funding – the UK risks a deepening productivity divide between large, digitally advanced firms, and smaller players. Initiatives such as the Made Smarter adoption programme, expanded under the government’s Industrial Strategy, are steps in the right direction, but meaningful outreach and practical on-theground support will be essential. This is where the UK’s industrial strategy must prove its worth. After years of fragmented policy, 2026 demands coherence and long‑term incentives for digital adoption, targeted support for SME capability‑building, and a national commitment to skills that match the technologies shaping the sector. The strategy must recognise that manufacturing is a gateway to international competitiveness. However close attention must be paid to differences in sectors. For example, aerospace and automotive have different digital maturity levels than food production or precision engineering. A one‑size‑fits‑all approach will fail, which is why correct focus on the eight sectors identified in the industry strategy is essential, with each sector requiring different measures. Crucially, the industrial strategy must champion balanced transformation. Yes, AI, robotics, and advanced analytics will define the next decade. But so too will the less glamorous foundations such as upgrading legacy equipment, improving energy efficiency, strengthening supply‑chain resilience, and embedding continuous improvement cultures. The UK cannot afford to glamourise disruption while neglecting the basics that keep factories running. The smartest move for both the UK manufacturers and for policy is not to chase every new tool, but to build the right ecosystem for long‑term, sustainable competitiveness. Regulatory context is shifting. The EU’s Carbon Border Adjustment Mechanism is adding new reporting and cost pressures for manufacturers, along with the Cyber Resilience Act security incident reporting obligations which apply from September 2026, and the expanded scope of the Ecodesign for Sustainable Products Regulation. These are only a few of the essential areas which manufacturers must understand and utilise to build their resilience and strengthen their efficiencies. Seeking assistance from associations such as Gambica is essential here to help keep track of changes ahead of time. For manufacturers of all sizes, this underscores an emerging reality that technology choices will increasingly be tied to compliance and sustainability, not just productivity. Investing in digital systems that can track carbon intensity, supply chain footprints, and real-time compliance will be as important as optimising production outputs. With the UK’s Modern Industrial Strategy emphasising advanced manufacturing and energy cost reform, it does reflect the government’s intent to revitalise an industry that deserves it. However, strategy alone won’t guarantee success. Ensuring a pipeline of skilled workers, reskilling existing ones, and aligning education and apprenticeships with industrial needs must also be core priorities. Let’s see how the rest of the year unfolds. n AI is not a substitute for good engineering 2026 is likely to be a challenging year for UK manufacturers – especially SMEs – with new regulations adding to their existing challenges. They must also decide how much they are going to invest in new AI-based technologies. Nikesh Mistry*, Gambica’s sector head for automation, argues they shouldn’t simply adopt new technologies for technology’s sake. * 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
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