5 minute read • published in partnership with Moore Kingston Smith
Insight: How manufacturers can lay the foundations for long-term strategic growth
The question isn’t whether the challenges facing manufacturers are significant – they are. The real question is: How will you respond? You can wait for conditions to improve, or you can take decisive action and seize the opportunities ahead. Jeremy Read, Partner at Moore Kingston Smith, a leading multi-disciplinary advisory, tax and audit firm, shares how manufacturers can unlock competitive advantage in 2025 and beyond.
The latest Executive Survey* by Make UK reveals that 2025 is set to be another challenging year for manufacturing business leaders, with rising costs and economic pressures continuing to test resilience. Yet, it also highlights significant opportunities, with 50% of companies planning to increase investments in new product development, entering new markets and talent development over the coming months.
This investment is, in part, driven by a belief that technology – automation in particular – can boost efficiency and counter the forthcoming increase in national insurance contributions in April and the rise in the minimum wage.
It’s an encouraging snapshot but what stands out is the enduring hesitancy holding companies back from unleashing their full investment potential. Over half of respondents (57%) said they are waiting for a government-backed industrial strategy before ramping up investments.
Here’s the problem with that approach: What if that strategy never materialises? Will your plans for automation, innovation or expansion stay on hold indefinitely? Relying on external signals puts others in control of your business’s future. The most successful businesses don’t wait, they think strategically and act decisively.
That starts with a robust three-to-five-year plan to guide manufacturers through uncertainty and position them for long-term sustainable growth.
Moore Kingston Smith is encouraging manufacturers to take decisive action and seize the opportunities to unlock competitive advantage in 2025 and beyond / Picture: Getty/iStock
Now is the time to plan for the future
The almost constant buffeting manufacturing sustains has forced many business leaders into a reactive stance. This mindset creates a vicious cycle, where short-term survival tactics take precedence over building a foundation for future growth. Reflecting on my manufacturing clients, those focused on the next 12 to 24 months seem far more affected by shocks than those looking further ahead.
Decision-makers who look beyond macropolitical, social and economic trends find themselves better prepared to pivot when disruption occurs, planning for multiple scenarios and making more informed choices.
A structured three-year plan provides clarity and control. It helps boardrooms anticipate challenges, seize emerging opportunities and make decisions that drive long-term value. Crucially, it enables you to stop reacting and start anticipating.
When circumstances change – and they will, given the volatile political and economic landscape – you’ll already have a framework to adapt and move forward strategically, while maintaining a focus on key priorities. It’s a tricky balance to strike but critical for navigating the current climate effectively.
A clear example of how quickly the landscape can shift is the government’s decision to restrict business property relief (BPR) and agricultural property relief for inheritance tax from April 2026. This policy shift could have significant implications for manufacturers, particularly those with succession planning and business continuity strategies tied to this relief.
While the changes are expected to raise £1.4 billion over the course of this parliament, independent research** suggests it could backfire – potentially costing the Treasury £1.26 billion as businesses divert investment ahead of future inheritance tax liabilities. Reviewing your business structure and estate planning now will help you remain in control of how assets are passed down, safeguarding your company’s future.
Start with sustainability
Sustainability is an excellent place to start your long-term planning because it offers a natural starting point for leaders to think beyond immediate pressures. It presents a powerful opportunity to add value to your business by streamlining operations, broadening market appeal and building stakeholder trust.
Manufacturers investing in waste reduction, energy efficiency, rethinking by-products and local supply chains – where feasible – are already reaping benefits like:
• lower operating costs;
• access to rapidly growing markets for sustainable goods;
• improved employee retention and brand loyalty.
But sustainability isn’t just about environmental impact, it also goes hand in hand with operational efficiency. Smarter resource management, supply chain optimisation and process improvements reduce carbon emissions and operating costs, while enhancing productivity and profitability.
The manufacturers succeeding are those investing in innovation, prioritising sustainability and planning strategically / Picture: Getty/iStock
At the same time, well-run, efficient operations create the capacity for businesses to pursue more ambitious sustainability goals – whether through investing in cleaner technologies, reducing reliance on volatile suppliers or meeting evolving customer expectations.
Manufacturers that embed sustainability and operational efficiency into their strategy create value beyond mere compliance, they position themselves to thrive in markets that increasingly reward responsible practices. We see more and more business leaders prioritise decisions that benefit the planet, redefining their processes, developing innovative products and engaging with supply chains that align with their long-term ambitions.
This commitment also extends to workforce development. Investing in skills training, incentivisation programmes and employee engagement ensures that your business isn’t just prepared for tomorrow’s challenges but actively shaping them.
Ask the tough questions
Whether you start with sustainability or another strategic priority like automation, technology transformation or supply chain optimisation, every transformative plan begins with reflection. To build a strategy that delivers results, ask yourself:
• What does your business look like today?
• Where do you want to be in three years?
• What needs to change to achieve that vision?
Answering these questions may reveal difficult truths. It may also mean changing your view of particular approaches. For example, one client identified underperforming parts of their business during this process and chose to sell them. Restructuring is often viewed negatively but, by divesting those areas, the client freed up resources to reinvest in their core operations.
At Moore Kingston Smith, we specialise in helping manufacturers have these critical conversations. From the usual audit, accounting and tax compliance support you would expect as standard to R&D tax relief, cyber security, strategic outsourcing and ESG, we provide practical, strategic guidance tailored to manufacturers’ unique challenges and ambitions. Our team has the expertise to help you address immediate needs while laying the groundwork for sustainable long-term growth.
Data from Make UK show 50% of companies are planning to increase investments in new product development, entering new markets and talent development over the coming months / Picture: Getty/iStock
Take control of your future
The choice is clear: Wait for external forces to dictate your next move or take proactive steps to secure your future. The manufacturers succeeding are those investing in innovation, prioritising sustainability and planning strategically.
2025 doesn’t have to be another year of uncertainty. With the right strategy in place, it can be a year of transformation and growth. Contact our manufacturing team at pd@mks.co.uk or visit www.mooreks.co.uk to discover how Moore Kingston Smith can help turn your vision into reality.
