Insight: Why 2025 is a watershed year for future-proofing in manufacturing

Inflation, trade friction and rising tax burdens make now a defining moment for manufacturing owners to protect long-term value. Most use process improvement methodologies, from Six Sigma to Kaizen, to improve factory performance. What if the same mindset guided decisions in the boardroom? Marc Fecher, chairman at Moore Kingston Smith Corporate Finance, a leading multi-disciplinary advisory, tax and audit firm, explains why a continuous improvement approach to business strategy is no longer optional.

Family-owned businesses are the backbone of UK industry, accounting for over 90%* of all private firms in the sector. Yet despite their importance, many remain unprepared for what lies ahead.

Two in three family business owners, for example, have no formal strategy for what happens when they step back or retire**. Even fewer have stress-tested that plan against real-world risks. That lack of planning is no match for the speed or scale of change manufacturers now face.

Labour, energy, materials, compliance, transport – costs are up across the board. At the same time, sweeping tax reforms are adding weight to an already heavy load. Business is becoming more complex, more expensive and more exposed to risk.

From reflection to action

Whether you’re thinking about growth, leadership, exit or simply protecting what you’ve built, now isn’t the time to wait and see. It’s time to take stock, test your assumptions and ask the hard questions:

• What if tax changes cut your business value by 40%?
• What if a key leader left tomorrow?
• What happens if tariffs or input costs spike again?
• What if your family disagrees on succession?
• What if a buyer made an offer?

These aren’t hypotheticals. They’re real scenarios playing out across the sector. Those navigating them best bring the same discipline to the boardroom as they do to the shop floor: decisions led by evidence not intuition, and a clear plan-do-check-act (PDCA) mindset.

This starts with clarity. Making long-term decisions in uncertain times can be overwhelming but delaying could limit your options. That’s why a holistic, objective review of your current position should be your first move. It gives you the insight, confidence and control to plan what’s next.

Bring lean thinking into the boardroom

Six Sigma and lean principles are second nature in manufacturing but too often, they’re left at the factory door. Few owners apply that same discipline to strategy, succession or structure.

A business isn’t static and neither is its environment. Just as you’d audit a process or review routes to market, your strategy needs the same scrutiny. A business health check – a full-spectrum review of where you are now, where risks are emerging and what levers you can pull – provides that foundation.

Think of it like a GP check-up or vehicle MOT. It helps you catch issues early, avoid nasty surprises and keep performance on track. And just like any good improvement programme, it shouldn’t be one-and-done. Manufacturing is a fast-moving environment where each stage is poised for disruption. Staying ahead means building a rhythm of review and improvement to leadership, finance, governance and ownership.

We’ve used this approach to help firms resolve misaligned ownership structures, prepare for succession years ahead of schedule and lift business value by fixing simple but overlooked governance gaps.

Whole-lifecycle planning, not last-minute firefighting

Too many owners wait for a crisis before seeking advice. But building and protecting value isn’t something you do just before a sale – it’s a mindset that runs through the full lifecycle of your business.

We help manufacturing leaders plan with clarity and confidence at every phase:

• Founding/acquiring – structuring it right from the start
• Scaling up – funding growth, managing risk and staying efficient
• Navigating pressure – making strong decisions in uncertain times
• Leadership transitions – preparing the next generation or bringing in outside talent
• Sale – exploring private equity, trade buyers, management buy-outs or employee ownership trusts

Whether exit is years away or you’re just starting to think about what’s next, the most important step is the first: be clear on where you stand and what your real options are. Even if you’re not ready to sell or step back, you need to be ready if circumstances change – because that’s what genuine resilience looks like.

Waiting narrows options, acting now expands them

Every manufacturer knows the value of being proactive. You don’t wait for a machine to break down – you monitor performance, run diagnostics and act before it’s too late. Your business plan deserves the same treatment.

The right strategy reflects your goals, people and appetite for change. It might involve diversifying your customer base, building leadership capacity or exploring external investment. It all depends on clear thinking, informed by independent experts who know your sector, priorities and pressures.

That’s what we bring: practical, grounded advice shaped by decades of working inside manufacturing, across every kind of political and economic cycle – growth, contraction and reform.

You don’t have to decide everything now but you do need to start asking the right questions. The choices you make in the next 12 months could determine whether your business remains stable, tax-efficient and in trusted hands or faces an uncertain future.

There’s no one-size-fits-all. The best strategy reflects your business’s performance, people and long-term goals. Ultimately, it keeps you in control – to protect what you’ve built, preserve family harmony and shape what’s next on your terms.

Help from the experts

If you’re unsure where to begin or want to explore your full options, now’s the time to start the conversation. Contact our manufacturing team at pd@mks.co.uk or visit www.mooreks.co.uk to see how Moore Kingston Smith can help you plan with clarity and confidence.

* State of the Nation: The UK Family Business Sector – Family Business Research Foundation
** Meeting the Needs of Modern Families report – STEP