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      UK industrial manufacturing organisations are operating in an environment that has fundamentally shifted, and is now shaped by supply chain disruption, cost pressures, tightening labour markets and increasing expectations around resilience and delivery. The focus has shifted decisively from recovery to execution — improving productivity, strengthening operations and rebalancing supply chains to remain competitive.

      In this context, organisations are actively exploring opportunities such as onshoring and near shoring of critical capabilities, consolidation across fragmented sub sectors, and increased engagement with private equity and international investors.

      Jonathon Gill

      Partner, Global Head of Aerospace & Industrial Markets and UK Head of Defence & Industrial Markets

      KPMG in the UK


      The challenge for today’s industrial and automotive organisations is no longer short term recovery, but sustained execution. Productivity must be improved in the face of labour and skills shortages, operations modernised through digital technologies and automation, and increasing complex supply chains made resilient. Adaptions must also be made to meet the demands of electrification, sustainability, and software-enabled products; all while controlling costs and maintaining competitiveness in a rapidly changing global market.

      This is where our deep sector knowledge and breadth of capability come together. We work with manufacturers, engineering businesses and industrial groups across the UK and internationally, including OEMs and inbound investors, helping them strengthen operational resilience, unlock value through rationalisation and consolidation, and capitalise on opportunities such as re onshoring, supply chain transformation and private capital participation.

      We support clients with digital and operational transformation, workforce and productivity improvement, mergers and acquisitions, supply chain optimisation and investment strategy. Embedded technologies — including data, automation, artificial intelligence and machine learning — underpin our work, enabling organisations to improve industrial performance, increase delivery confidence and build sustainable long term competitiveness.


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      KPMG 2025 Industrial Manufacturing and Automotive CEO Outlook

      The figures show that in today’s rapidly evolving industrial landscape, automotive and manufacturing leaders face unprecedented complexity.



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