UK Manufacturers Take a Breather After Big Tax Boost
Thanks to the latest Autumn Statement, many factories can relax a bit: the Finance Minister has made the tax perks for new investment a permanent fixture. That means businesses can safely plan their growth without fearing surprise fiscal hiccups.
What the Fresh Numbers Are Saying
- 83% of manufacturers swear that the last six months have been tougher than a pandemic lockdown.
- 40% say rising interest rates are pulling the plug on new projects.
- 26% worry about wages climbing like a bad party balloon.
- 23% highlight the messiness of global supply chains.
Short‑term, many have cut costs, leaned into AI to streamline supply chains, and in a surprising move, 58% are bringing production back home—reshoring that boosts security and cuts shipping headaches.
Reshoring: The Good Life of Onshore Production
Even though reshoring can sound pricey, 90% of firms that’ve done it report:
- 26% say they’ve gained sharper value and better security.
- 24% have trimmed costs.
These wins mainly come from:
- 22% of suppliers hiking prices.
- 22% of technology breakthroughs.
Looking ahead, 82% of manufacturers plan to ramp up reshoring over the next two years.
What Keeps Them on the Fence
When asked about the toughest hurdles:
- 38% cite rising prices.
- 32% mention higher operating costs.
- 27% fear supplier management complexities.
So, they’ll need more staff: 47% say on‑shore jobs must grow, and 45% expect specialist hires to shepherd the reshoring push.
Tech: The Secret Weapon
Business leaders are practically giddy about:
- 31% of AI‑driven tracking tools.
- 29% of factory digitalisation.
- 29% of data analytics for risk management.
And the ROI on automation is sweet: 78% anticipate a quick return.
Customers’ Bottom Line
Manufacturers foresee that, by focusing on reshoring, they’ll deliver:
- 35% cheaper product prices.
- 34% faster delivery.
- 33% higher quality.
Why This Matters for the Whole Economy
Shifting to on‑shore production can spark ripple effects across many industries—boosting local jobs, reducing shipping emissions, and tightening the supply chain vertebrae.
Commentary from Paul Ellis, UK MD, Medius
“In a battle‑tested market where interest rates are cramping our legs and supply chains are more tangled than a summer BBQ napkin, a remarkable 58% of manufacturers are reshoring their operations. They’re driven by tech gains and the promise of greater security, and the price tag isn’t as scary anymore. This is only the start; AI and automation aren’t just helping us survive—they’re letting us thrive amid shifting economic tides.”
Mattress Tek’s Big‑Bang Strategy: British Innovation, Big Growth
“It’s a lean, mean machine‑making machine,” says Shaun Peal, Technical Director of Mattress Tek.
He’s not just talking about numbers – the company is hiring, winning awards, and turning the UK after a 8th‑place world ranking into a hotbed for bedding tech.
What’s Going on Inside the Factory?
- All machines design, build and test right on our UK site – no exotic overseas parts.
- We buy bulk British steel at locked‑in prices and pipe it to our precision‑component arm for the final touch.
- Engineers install the gear in the same place, preserving quality and speed.
Why Customers Love It
- Programmable automation systems that streamline and speed up production.
- Sharper accuracy, improved safety, and higher productivity.
- A smart long‑term investment that even lowers shipping costs with our own pallets and crates.
Growth Snapshot
In just two months we hired four new teammates – a clear sign that we’re expanding, thriving, and snagging accolades.
It’s not a “flash‑in‑the‑pan” growth; it’s a concrete, lean‑approach engine pulling the brand forward.
“All our machines are designed, built, and tested at our UK site … and installed by our own engineers,” Shaun explains.
“This approach translates into better processes for our partners: automation that guarantees speed, accuracy, safety, and efficiency.”
With a fresh crew, a growing portfolio, and an eye on the future, Mattress Tek is proving that British ingenuity can make the home‑bedding industry sit down and do the job right.
