In the third quarter, UK manufacturing continued to expand, with improving order books and rising output, while volatile logistics and skills shortages complicated production planning.
Our industry news on socials highlighted a recurring challenge: how to meet stronger demand while keeping staffing, stock and operating costs under control.
Flexible capacity was a central theme. Outsourcing, better material flow and targeted buffer stocks offer practical ways to support production without relying solely on additional headcount. Alongside these operational priorities, we explored how AI, digital skills and supplier cyber resilience could strengthen productivity and supply continuity.
For OEMs, the focus is on matching resources to real demand, and keeping components moving reliably from warehouse to production line.
Top Trends in Supply Chain Technology for 2026 just published by Gartner include:
— Acorn IC (@Acorn_IC) July 3, 2026
Polyfunctional Robots, Agentic AI, Collaborative Multi-agent Systems (MAS), and Product Provenance.
More ⇢ https://t.co/5KX5tl94nA pic.twitter.com/KOfqhazOzr
June Manufacturing PMI at 52.5.
— Acorn IC (@Acorn_IC) July 8, 2026
Client strategic stockpiling is helping manufacturing output rise despite slowing momentum in new orders.
– Manufacturing production expansion continues
– Consolidation over growth: 48% expect output to rise
– Global shipping under stress pic.twitter.com/h0fqc3V8ES
July European logistics updates by Maersk highlight the unpredictable nature of global supply routes currently
— Acorn IC (@Acorn_IC) July 10, 2026
European stability is improving in places, but buffer stock, documentation and route flexibility are key to keeping on top of the situation ⇢ https://t.co/lJRaJ5ZkaY
UK manufacturing is still expanding, but it's indicative of a cautious recovery.
— Acorn IC (@Acorn_IC) July 13, 2026
With ouput growth hitting a 22-month high, production pressure is rising, putting a premium on reliable component flow and line feed delivery.
PMI releases at ⇢ https://t.co/GTqRPYFMmC pic.twitter.com/4sLcWswTKU
The latest report by GEP notes buffer stockpiling for safety is reaching highs not seen since January 2023.
— Acorn IC (@Acorn_IC) July 15, 2026
A better targeted approach = identifying production-critical components, monitoring consumption & replenishing against real demand.
More at ⇢ https://t.co/MVIUlcxNCV
As part of the UK's new industrial strategy, a new Supply Chain Centre is being set up, with 6 objectives. Including:
— Acorn IC (@Acorn_IC) July 17, 2026
– Anticipating future supply chain risks
– Identifying the inputs the UK needs
– Building domestic resilience
More on the plan ⇢ https://t.co/Ehgj9O74wK
Make UK’s 2026 Makers’ Manifesto calls for action on energy costs, skills, infrastructure, planning and supply chain resilience.
— Acorn IC (@Acorn_IC) July 21, 2026
Where should the UK strengthen manufacturing investment and priorities?
Make UK's answer ⇢ https://t.co/A0eFvwvTKe pic.twitter.com/kutrFe8Qb3
Skills shortages remain one of the biggest constraints on UK manufacturing growth.
— Acorn IC (@Acorn_IC) July 28, 2026
New technical education pathways announced by UKGOV would allow students from 14 up to combine academic learning with technical education & employer experience
Article ⇢ https://t.co/xOzpfeukZK
Adding headcount isn’t the only way to increase production capacity.
— Acorn IC (@Acorn_IC) July 30, 2026
Reducing unnecessary handling, improving material flow and removing transactional work can often deliver faster gains.
6 ways to do it ⇢ https://t.co/6YKQpxM26G pic.twitter.com/ajhgt5cKpe
Supporting manufacturers means strengthening the supply chains behind them.
— Acorn IC (@Acorn_IC) August 5, 2026
UK manufacturing delivers:
– £220bn output
– £44.1bn investment
– 2.6m jobs
– 42% of UK exports
More at ⇢ https://t.co/A0eFvwvTKe pic.twitter.com/CRmefDAhTe
Increasing capacity doesn’t always need more people.
— Acorn IC (@Acorn_IC) August 7, 2026
It often needs better supply chain design.
Read the article:
How to Increase OEM Capacity Without Adding Headcount ⇢ https://t.co/6YKQpxM26G pic.twitter.com/enycKZKmBE
PMI eased slightly to 51.9, yet production, new business and export orders remain strong. Demand is strengthening ahead of confidence.
— Acorn IC (@Acorn_IC) August 10, 2026
Manufacturing gathers momentum.
Supply chain pressures ease.
Capacity pressures emerge.
Inventory remains cautious.
Full summary in graphic. pic.twitter.com/Ei2VkdN3KJ
UK productivity is growing more strongly than official figures suggest, according to the Resolution Foundation
— Acorn IC (@Acorn_IC) August 25, 2026
Faced with skills and labour shortages, manufacturers are finding growth through using existing processes, tech and operations better
Read ⇢ https://t.co/5OvJ6gY7WB
"29% of working hours across supply chains could be automated by generative AI," according to Accenture Research.
— Acorn IC (@Acorn_IC) August 27, 2026
With the skills shortage creating a personnel squeeze, it's another way to free up your existing talent to keep supply moving.
More ⇢ https://t.co/R38z3bmfcI pic.twitter.com/z3SUmoSbat
A cyber incident at one supplier can cascade …
— Acorn IC (@Acorn_IC) August 31, 2026
Among affected manufacturers, 31% experienced supply delays, 31% reduced capacity & 23% component or material shortages
Be on top of the threat. Work with suppliers who take it seriously
Make UK report ⇢ https://t.co/2735CaWKEM pic.twitter.com/ms0PNxx6RO
UK Manufacturing sector continues to defy expectations, expanding in August (S&P Global PMI).
— Acorn IC (@Acorn_IC) September 4, 2026
While new orders and growth slowed slightly (after the previous month’s surge), the pace of new job creation is now at a 2y high.
More ⇢ https://t.co/PPUYVtR9ev pic.twitter.com/h826bqR4yW
Compliance must become an operational capability, not simply a paperwork exercise.
— Acorn IC (@Acorn_IC) June 3, 2026
As trade/freight requirements become more data-dependent, manufacturers need confidence in product records, batch traceability and supplier documentation.
More ⇢ https://t.co/NGKHnwt4WK pic.twitter.com/Mp8qa5f3fl
'Digital skills stacking' is a workforce imperative in connected factories (WMG – Warwick Manufacturing Group thinking).
— Acorn IC (@Acorn_IC) September 9, 2026
How manufacturing jobs are evolving and the emergence of the hybrid manufacturer (article with U.Warwick's Dr Awinder Kaur) ⇢ https://t.co/O5O7z9xHmh
In spite of the knock-on effects of the Iran conflict, the UK economy is defying expectations: growth continues, up from 0.3% in June, to 0.4% in July.
— Acorn IC (@Acorn_IC) September 14, 2026
While much of this growth is put down to AI, manufacturing output continues to rise.
More ⇢ https://t.co/JPS2SraMTE pic.twitter.com/ASZyUate9H
Make UK's Q3 Manufacturing Outlook highlights improving business orders, confidence, and investment, but hiring is still lagging.
— Acorn IC (@Acorn_IC) September 18, 2026
Partnerships can help keep pace with capacity while caution remains around adding headcount.
Make UK Report ⇢ https://t.co/c2BuYoQYVc
Supply chain resilience is affecting broader operations and directly impacting production. (Supply Chains Under Pressure, The Manufacturer)
— Acorn IC (@Acorn_IC) September 23, 2026
More stock to protect line production is an easy solution. Where to hold it and who manages it for greater efficiency is a better question pic.twitter.com/XSj7ly36g7
The new CBI Industrial Trends Survey shows UK manufacturing order books continuing to improve.
— Acorn IC (@Acorn_IC) September 25, 2026
Improving orders while keeping inventory lean begs the question: how to meet demand without adding headcount?
Outsourcing can provide flexible capacity
More⇢ https://t.co/o8DATeYw0t
Drinks manufacturer AG Barr says supply chain issues contributed to £10m in lost sales in H1, 2026.
— Acorn IC (@Acorn_IC) September 29, 2026
Product availability and operations suffered due to capacity and capability issues.
Do you have flexible capability in your logistics?
Story ⇢ https://t.co/JfinzhjHGq
