News 6 | Plant & Works Engineering www.pwemag.co.uk February/March 2026 Britain’s engineering and manufacturing leaders are cautiously optimistic about the year ahead, with a new survey showing strong expectations that the forthcoming Industrial Strategy and sector-specific plans will help drive growth in 2026. This confidence is accompanied by increasingly urgent warnings about escalating business costs, particularly employment and energy, which many manufacturers now believe are approaching a critical point that could push investment abroad. The Make UK 2026 Senior Executive Survey, produced with PwC UK, reports that 57% of manufacturers expect a long-term Industrial Strategy and sector plans to have the biggest impact on growth this year. Almost two thirds say they are preparing to bring forward investment in response. The strongest investment priorities are new product development, with four in five companies planning to increase spending, followed by digital technologies, AI and automation at 76%. More than half expect to expand their product ranges and 42% intend to enter new export markets. The push into AI is also linked to commercial strategy, with over a third citing increased marketing activity as a key growth opportunity. Although a majority still consider the UK a competitive place to manufacture, sentiment is shifting. Twenty six per cent now view the UK as uncompetitive, and international perceptions are evenly balanced, with 39% of non-UK businesses seeing the UK as an unattractive investment location compared with 41% who view it favourably. Cost pressures dominate the challenges reported by manufacturers. Almost nine in ten expect employment costs to rise, 79% anticipate increases in material and input costs and two thirds foresee higher business rates. These pressures are influencing strategic decisions. Around 60% of companies say they would have cut or cancelled investment had business tax increases been introduced in the latest Budget, and 57% say they would have shifted investment overseas under those conditions. Make UK warns that domestic employment and energy costs are now threatening to reach a tipping point, despite global cost pressures playing a role. The organisation is calling for the Government to accelerate delivery of the Industrial Strategy, bring forward the planned business energy support scheme and extend it to as many companies as possible. It also wants greater stability and clarity around future employment regulation, particularly given the impact of increased National Insurance contributions and the Employment Reform Bill on recruitment and long-term planning. Industrial Strategy expected to lift UK Manufacturing Combilift has celebrated a major manufacturing milestone by transforming its 100,000th forklift into a powerful force for good, raising and donating €100,000 to the United Nations International Children’s Emergency Fund to support children in crisis worldwide. To mark the production of its 100,000th forklift, Combilift launched its largest-ever worldwide competition, offering the exclusive 100,000th “Golden Prize” multidirectional Combi-CBE. All proceeds raised were donated to UNICEF Ireland’s Children’s Emergency Fund. The campaign generated €56,500 in ticket sales, and at a cheque presentation ceremony, Combilift announced it had topped up the total contribution to an impressive €100,000, underlining the company’s longstanding commitment to corporate social responsibility. Speaking at the handover, Combilift CEO and Co-Founder Martin McVicar said: “This campaign was designed not only to celebrate a major manufacturing achievement for Combilift, but also to make a meaningful difference beyond the factory floor. By supporting UNICEF, we are supporting one of the world’s most effective humanitarian organisations and helping children who need it most.” The cheque was formally presented by Martin McVicar to Owen Buckley, UNICEF Ireland’s Head of Corporate Partnerships, Combilift’s 100,000th forklift raises €100,000 for global children’s charity DigiKey renews platinum level sponsorship of WE United DigiKey, the global distribution leader of electronic components and automation products, has recently announced it has renewed its annual Platinum Level sponsorship of WE United, formerly Women in Electronics (WE). WE United is a community of leaders at all stages of their careers dedicated to expanding opportunities for women in the fast-paced electronics industry. “DigiKey is excited to continue investing in WE United, a vital partner in our efforts to accelerate progress for women in electronics and technology globally,” said Linda Johnson, executive partner, transformation and development at DigiKey. “Through this partnership, we aim to foster awareness, education and collaboration that help create a stronger, more forward-thinking industry.” WE United is a 501(c)3 public charity that provides leadership development, mentorship, networking, thought-leadership events and resources to advance gender parity in the electronics industry and adjacent technology markets. “We are excited to partner with DigiKey as WE United moves forward with its continued focus on gender parity as a critical leadership topic, as well as bringing men and women together to be a part of advancing systemic change together,” said Jackie Mattox, founder & CEO of WE United. DigiKey launched a WE United chapter in Northern Minnesota in 2018 and helped start the German chapter in Munich in 2024. Both chapters are open to all DigiKey employees and anyone in the local communities who desires access to experts, tools, resources and support to empower and develop women leaders.
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