Manufacturing Roundtable: Strategic insights for an industry under pressure
Chris Barlow · Posted on: October 9th 2025 · read
On 30 September 2025, MHA welcomed senior leaders from across the Midlands’ manufacturing industry to Rutland House for a roundtable discussion focused on the challenges and opportunities facing UK manufacturers.
The event brought together voices from industry, education, energy, and policy, with the conversation chaired by MHA’s Chris Barlow and in conjunction with the Business Desk.
The discussion was wide-ranging, covering everything from Brexit and energy costs to apprenticeships, taxation, and the future of the recently launched Industrial Strategy. What emerged was a clear picture of a industry under pressure, but also one full of resilience, innovation, and ambition.
An industry at a crossroads
The roundtable opened with reflections on Brexit’s lingering impact. Manufacturers shared ongoing frustrations with cross-border trade, citing red tape, delays, and rising costs. One participant described the post-Brexit landscape as “a red tape nightmare,” particularly for businesses with European supply chains.
Despite the government’s Industrial Strategy being seen as a step in the right direction, attendees expressed concern about the lack of follow-through. “We’ve seen the announcements,” one manufacturer noted, “but where’s the delivery?”
Energy costs and carbon policy: A growing threat
Energy emerged as a dominant theme where several businesses warned of a looming crisis pending in April 2026.
When non-commodity electricity costs are expected to rise by between 10-30%, leaving many feeling blindsided by the lack of public awareness and government communication around this change.
The Carbon Border Adjustment Mechanism (CBAM) was also flagged as a major concern. While intended to support net zero goals, manufacturers warned that CBAM could penalise UK businesses, especially those already investing in low-carbon production. One participant described CBAM as “fiendishly complex,” with fears that it could lead to double taxation and further bureaucracy as well as pushing production abroad so allowing the UK to achieve green targets but failing on so many other levels.
There was consensus that without joined up thinking between departments, particularly HMRC, the Treasury, and the Department for Business and Trade, policies like CBAM risk undermining the very industries they aim to support.
Taxation and investment: A call for relief
Taxation continues to be a prominent feature for the industry where manufacturers voiced frustration at rising National Insurance contributions and the erosion of R&D tax reliefs for smaller entities. While capital allowances were seen as helpful however, they were not enough to offset the broader cost pressures.
Several attendees called for a reduction in corporation tax to stimulate investment, citing Ireland’s success in attracting global businesses. Others proposed targeted reliefs for companies reinvesting profits rather than extracting dividends.
Skills and apprenticeships: A mixed picture
The conversation turned to workforce development, with mixed views on apprenticeships and the current skills gap that there is in the industry. Some manufacturers reported success in recruiting and retaining apprentices, while others had paused programmes due to cost and retention challenges.
There was a new concern about generational shifts in attitudes toward work and employers noted that younger workers often lacked workplace readiness, with unrealistic expectations around flexibility and communication. Colleges and training providers echoed this, highlighting the need for more structured pathways and foundation apprenticeships to bridge the gap.
However, despite these challenges, there was strong support for investing in people of all ages. Retraining older workers was seen as a valuable strategy, particularly in rural areas where recruitment can be a difficult process.
generational shifts in attitudes toward work and employers noted that younger workers often lacked workplace readiness, with unrealistic expectations around flexibility and communication
Global competition and supply chain pressures
Manufacturers shared stories of intense global competition, particularly from China and continental Europe. One business described the cost of reshoring production to the UK as “an impossible wall,” citing high labour and building costs.
Supply chain delays continue to also be a concern where Brexit-related friction has led to longer lead times and increased stockholding requirements. While some businesses have found workarounds, such as using Delivered at Place (DAP) systems to smooth EU exports, others warned that the UK’s competitiveness is slipping when comparing to other nations around the world.
Industrial strategy: Promises vs. delivery
While the government’s Industrial Strategy was broadly welcomed, attendees were united in their call for action over rhetoric. The lack of detail around regional clusters, energy relief schemes, and foundational industries was seen as a major barrier to progress.
One participant summed it up: “The strategy was one of the best reports I’ve seen, but we’ve heard nothing since.”
The strategy was one of the best reports I’ve seen, but we’ve heard nothing since.
Top priorities for government and industry collaboration
As the session drew to a close, attendees were asked to identify the top three priorities for government and industry collaboration. The consensus included:
Energy reform
Competitive pricing and clarity around relief schemes are essential to avoid further business closures.
Tax incentives for investment
Reduce corporation tax or offer reliefs for reinvested profits to stimulate growth.
Joined-up policy delivery
Ensure departments work together to implement industrial strategy effectively, with clear communication and accountability.
Key takeaways
The roundtable highlighted an industry facing complex, interlinked challenges, but also one with deep expertise and a strong will to adapt. Manufacturers are calling for:
Policy clarity and delivery: From CBAM to energy relief, businesses need actionable support.
Tax reform: Incentives must align with investment and growth, not penalise it.
Skills investment: Apprenticeships and retraining must be supported across generations.
Global competitiveness: Trade friction and cost pressures must be addressed to keep UK manufacturing viable.
Quote of the day
"Manufacturing is the heart of this country. Let businesses run their businesses, let them invest and it will bring money back into the economy."
Get in touch
At MHA, we remain committed to supporting manufacturers as they navigate these pressures and opportunities.
If you’d like to discuss any of the issues raised in this roundtable, from energy costs and taxation to skills development and investment strategy, our team of manufacturing specialists can help you plan with confidence.
Get in touch with MHA’s Manufacturing & Engineering team to explore how we can support your business and help shape the future of UK manufacturing.
