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Manufacturing risk in 2026: what’s changing for UK businesses

Baseline insight, sector trends and practical considerations for manufacturers navigating cost pressure, supply chain complexity and evolving payment behaviour

Manufacturers are continuing to operate in a mixed and fast-moving environment in 2026.

Cost pressure, demand uncertainty and shifting payment behaviour were already shaping the year, and many of these trends are still playing out across supply chains today. Our latest Manufacturing Sector Report assesses the sector outlook as moderate, with businesses continuing to navigate raw material cost volatility, skills shortages and cautious investment conditions. 

This page brings together a few key insights, along with a practical example and event activity, to help manufacturers understand how risk is evolving in the current market.

 

What's happening now?

 

Manufacturers are still dealing with a challenging mix of cost pressure, demand uncertainty and shifting payment behaviour.

 

Our March industry trends report looks at how conditions are evolving across the machines and engineering sector.

 

While published earlier this year, many of the pressures highlighted are still very much being felt by manufacturers today.

 

This is something we’re hearing more and more from businesses in the sector.

Read our recent machines & engineering insights
Download our latest Manufacturing Sector Report
The manufacturing risk baseline for 2026

Our latest Manufacturing Sector Report provides Atradius' assessment of manufacturing sector risk, business conditions and financial health heading into the second half of 2026, covering:

  • Sector outlook and credit risk assessment
  • Payment performance and customer risk trends
  • Business conditions and profit margin outlook
  • Insolvency developments
  • Financing and investment challenges
  • Key manufacturing sector trends for H2 2026

Thank you for downloading the manufavtuirng sector report, your download should start shortly. Please check your download folder if the report doesn't open in a new tab.

"“Atradius provides us with the cover and limit satisfaction we need to trade confidently and grow our business, even when customer risk is high.”"

Finance Director, The Encore Group

How one manufacturer is managing customer risk in practice

The findings in our Manufacturing Sector Report are reflected in the conversations we're having with manufacturers across the UK, many of whom are looking for ways to manage customer risk without restricting growth.

While insight is useful, it’s often easier to see how this works in a real-world setting.

The Encore Group, a multi-site UK manufacturer of envelopes and paper-based packaging, wanted to better manage customer risk without restricting growth or changing how they traded.

By putting a more structured approach in place, they were able to:

They’ve now worked with Atradius for over seven years, with consistent support helping them grow while managing risk more effectively.

Payment trends
Cash flow visibility remains a priority for many manufacturers

As businesses navigate changing demand, investment pressures and evolving customer behaviour, many are taking a more structured approach to credit management and risk assessment.


Atradius' B2B Payment Practices Trends in the UK 2026 report explores how businesses are managing payment behaviour in practice, including how they balance supporting sales with protecting cash flow.

 

For many, it's not about avoiding risk altogether, but managing it in a way that still allows them to grow.
 

Explore UK payment trends

We spoke at Machine Building South 

On the 8th of July, Atradius attended Machine Building South, spoke with manufacturers, engineers and suppliers about the opportunities and challenges currently shaping the sector.

Our workshop, Credit Insurance & Supply Chain Resilience, led by Chris Wall, explored the themes that are having the greatest impact on UK manufacturers today, including economic uncertainty, cash flow protection, supply chain disruption, fraud prevention and the growing role of automation and digitalisation.

The discussion also highlighted the importance of maintaining visibility over customer risk and payment behaviour as businesses balance growth ambitions with an increasingly complex operating environment.

Key discussion points from the workshop:

CH-show Stand-show keith-show-1

If you have any questions or would like get more information, don't hesitate to get in touch

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