MHA report shows the most pressing issue in manufacturing for East Midlands is regulation
Shelley Harvey · Posted on: July 8th 2025 · read
Shelley Harvey, a Partner in the Manufacturing and Engineering team at our Leicester office, shares her reflections on this year’s manufacturing outlook, offering insight into both national trends and the specific regional dynamics affecting the East Midlands. Her comments draw on her close work with clients in the sector and her interpretation of the report’s findings.
A balanced picture: Past, present and future
Shelley feels the report offers a fair and balanced overview of the manufacturing sector, recognising the significant challenges while also pointing to areas of opportunity. It shows how businesses have responded to a changing economic landscape and outlines how these pressures are expected to develop. Encouragingly, she sees positive signs of resilience and adaptability across the sector despite ongoing pressures.
Key findings: What will affect clients most
One of the key concerns Shelley identifies is the continued impact of rising taxes and National Insurance contributions. She notes that these cost increases are affecting client decision-making, with many businesses seeing profits reduced and investment plans scaled back. This is particularly relevant for labour-intensive manufacturers, many of which are based in the East Midlands.
Shelley believes this financial pressure may drive more businesses to explore automation and the use of digital tools. While this could help boost efficiency and competitiveness, she points out that it also brings the challenge of upskilling staff.
Cybersecurity is another priority Shelley highlights. As manufacturing becomes more digital, she says the risks have grown significantly. This is a concern for many businesses she works with and is now viewed as a fundamental part of any future strategy.
The East Midlands perspective
Shelley describes the East Midlands as a key part of the UK’s manufacturing base. While the region faces the same economic pressures outlined in the report, she finds it encouraging that 53.6% of East Midlands manufacturers expect growth of between 3% and 5% over the coming year. She believes this reflects both resilience and a willingness to adapt.
Although investment confidence has been affected, Shelley sees a determination among local businesses to move forward and embrace opportunities. The region’s position among the top five for expected growth underlines the strength and importance of its manufacturing base.
What should businesses do next?
"Looking ahead, Shelley sees digital transformation as a vital opportunity. She believes that by embracing digitalisation and AI, manufacturers can improve efficiency, reduce downtime and become more agile in responding to change."
To prepare for the future, she suggests businesses should:
- Consider investing in new technology that supports smarter operations
- Manage costs carefully in the face of ongoing fiscal pressure.
- Stay open and flexible to evolving market conditions and remain responsive to changes.
Shelley believes the ability to innovate and remain resilient will be what sets successful businesses apart. Those that can adapt and make informed investments will be in the strongest position to thrive in 2025 and beyond.
