5 minute read • published in partnership with Purbeck Insurance Services
JLR cyberattack: How one incident exposed the financial fragility of Britain’s manufacturing supply chain
When Jaguar Land Rover (JLR) was hit by a major cyberattack earlier this year, the effects were immediate and far-reaching. Production lines ground to a halt, deliveries were delayed, and systems across the UK’s largest carmaker were paralysed. But beyond the headlines of digital disruption, the true cost of the attack is still being felt most sharply down the supply chain — among the many small and medium-sized suppliers who depend on JLR’s steady flow of orders to keep their businesses moving. Todd Davison from Purbeck Personal Guarantee Insurance looks at the impact and why Britain’s manufacturing supply chain needs to integrate financial resilience within its growth and investment decisions.
For many firms, even a brief interruption in production can create a financial shockwave. When invoices aren’t paid and cash stops flowing, suppliers still have to cover payroll, raw materials, and energy bills. Some have already been forced to seek emergency loans just to stay solvent — and for many, that borrowing comes with a personal risk attached.
A cyber crisis with real-world consequences
The temporary shutdown at JLR was a stark reminder that Britain’s manufacturing ecosystem is only as strong as its weakest link. In an era where cyberattacks can shut down production overnight, operational risk has become inseparable from financial risk.
While the Government’s recent announcement of a loan guarantee for JLR — designed to provide surety across the supply chain and safeguard jobs in key manufacturing regions — offers a vital lifeline, it cannot undo the damage already done to supplier cashflows.
At Purbeck Insurance Services, we’ve seen this pattern before. When a large OEM faces disruption, the impact ripples through hundreds of smaller firms — from precision engineers in the Midlands to logistics providers in Merseyside. And as the pressure mounts, these firms increasingly turn to lenders for support.
The challenge? Many of these emergency loans require a personal guarantee. That means the directors signing them could be personally liable for repayment if their business fails to recover — putting their homes and personal savings at risk.
Personal guarantee exposure rising among manufacturers
As a direct consequence of the JLR incident, Purbeck has seen a marked rise in applications for Personal Guarantee Insurance (PGI) from automotive and manufacturing businesses seeking financial support to weather the disruption.
The demand isn’t surprising. Recent data from our Q3 2025 analysis of personal guarantee–backed loans among manufacturers shows both a shift in business confidence and an increase in the strategic use of finance:
39% of loans were used for working capital, still the dominant reason for borrowing but slightly lower than the 41% recorded in the previous quarter.
20% of personal guarantee–backed loans were secured for asset purchases, up from just 6% in Q2 2025, suggesting renewed investment in new machinery and production technology.
16% of loans were for acquisitions, and 13% for growth initiatives, underscoring that while manufacturers remain cautious, many are still pursuing expansion and M&A opportunities.
However, the average loan value fell from £213,396 to £163,716, a drop of over 30% in one quarter — a sign that directors are consciously avoiding overexposure amid rising labour costs and ongoing economic uncertainty
This data paints a nuanced picture. Manufacturers are beginning to look beyond survival, but their confidence is measured. They’re investing in efficiency — not extravagance — and balancing ambition with risk management.
The human cost of corporate risk
Behind every loan application is a business owner who has put their livelihood on the line. A personal guarantee is, at its core, a promise — a commitment by a director to repay a company’s debt if the business cannot. For many in the supply chain, that promise feels like the only path to keeping staff paid and operations running.
But it’s a high-stakes decision. If the business fails, the director’s personal assets — including their home — could be seized by the lender. That’s why Personal Guarantee Insurance has become such an essential tool in the modern manufacturing finance toolkit. It offers up to 80% protection on the guaranteed amount, giving business leaders the confidence to access funding without jeopardising their financial security.
As I’ve often said, losing your business is devastating enough — you don’t want to lose your home too.
Cashflow is still king
Our data shows that cashflow remains the number one concern for UK manufacturers, and that’s unlikely to change any time soon. Labour costs are climbing, the Employment Rights Bill is set to add further pressure, and the cost of borrowing remains high.
In that environment, many firms are taking a disciplined approach to debt — borrowing smaller amounts, spreading risk, and seeking protection through insurance. This pragmatism is a hallmark of British manufacturing resilience: a sector willing to invest, but unwilling to gamble.
Cyber and financial resilience must converge
The JLR cyberattack has reinforced a critical truth: digital security and financial resilience are now inseparable.
It’s no longer enough for manufacturers to focus on IT firewalls or backups. The bigger question is how to protect against the financial aftershocks that follow operational disruption. When a cyber incident halts production, it can quickly turn into a liquidity crisis. That’s why more firms are integrating financial risk management — including personal guarantee protection — into their broader business continuity strategies.
Supply chain security today means not only protecting data but also protecting directors, businesses, and livelihoods from the fallout of disruption.
Looking ahead: A sector defined by cautious confidence
As production at JLR resumes and government-backed support begins to flow, there is cautious optimism that the sector can recover. The manufacturing data from Q3 2025 reflects that same sentiment — one of measured growth.
Manufacturers are investing in new assets, pursuing acquisitions, and driving productivity improvements. But they’re also acknowledging the risks — from cyber threats to cashflow volatility — that continue to shape their decision-making.
At Purbeck, we believe that this balance between ambition and caution will define manufacturing success through the remainder of 2025 and into 2026. Those who combine investment with protection — whether through technology, insurance, or smarter financial planning — will emerge stronger, more resilient, and better prepared for whatever shocks lie ahead.
For more information on how Purbeck support SME manufacturers, visit: Purbeck Insurance Services
