UK manufacturers are on strong footing for the year, report finds
Small and mid-sized manufacturers entered 2026 on a growth-ready footing, new figures reveal.
Sales revenues remained high for small UK manufacturers, with firms making an average of £411,430 in the final quarter of last year – the third highest since 2018. The Q4 2025 result was 49% higher than Q4 2024, pointing to sustained growth across the country’s SME manufacturing base.
Similarly, purchasing and stock on hand figures point to optimism in forecasts and future orders, with firms replenishing inventory to meet upcoming demand. Purchasing lifted 35% in the final quarter of last year compared to the previous quarter, while stock on hand grew by just over a fifth.
Lead times remained unchanged both QoQ and YoY at 19 days.
The figures appear in the latest manufacturing report from inventory management specialist Unleashed, an inventory management software platform popular with small and mid-sized manufacturers, wholesalers and distributors. Its quarterly report is based on data from more than 600 UK firms using the software, across manufacturing categories such as food and drink, clothing and fashion, and construction.
Commenting on the figures, Joe Llewellyn, GM of ERP Small Business at The Access Group, the parent company of Unleashed, said: “The final part of the year saw manufacturers focus on strategic restocking – replenishing inventory to meet customer demand, which has put them on a growth-ready footing. And sales are among the strongest we’ve seen, which is helping offset the costs of maintaining higher levels of inventory.”
Looking ahead to the coming months, he also acknowledged the uncertainty many manufacturers were facing:
“However we don’t yet know what impact the global picture will have on manufacturers. We may see increases in energy prices, shortages in some materials, or disruption to shipping routes which increase lead times and costs. As always, smaller firms are most vulnerable to this kind of disruption – but they are also more agile and can respond faster to changing situations.”
Unleashed’s report also compared performance across 12 different manufacturing categories.
The electrical and electronic components category saw a dramatic rebound, with sales revenue up by 36% QoQ. Electronics and telecommunication manufacturers also saw a rise of more than a fifth. Another winner was sports and recreation, which saw its revenue rise by nearly a third (32%).
Energy and chemicals saw the biggest QoQ drop in sales revenue (-18%). Building and construction also saw a notable decline in sales revenue at -17%, though this could be a correction on the previous quarter when it surged by nearly 43%.
It was a mixed picture for suppliers in the FMCG categories over the Golden Quarter. Food manufacturers saw sales revenue decline by 5% QoQ, while drinks manufacturers saw a modest rise of just over 5%. However, both saw significant YoY uplifts in sales revenue and purchasing.
View the full Unleashed Manufacturing Health Index report.