The UK engineering and manufacturing sector has navigated another year of change in 2025. While economic uncertainty and cost pressures have remained part of the landscape, the industry has demonstrated notable resilience, continuing to evolve through technology adoption, workforce transformation and shifting hiring priorities.
For employers and engineering professionals alike, the market has become less about rapid expansion and more about efficiency, retention and long-term capability. As we move toward 2026, these themes are expected to shape both hiring strategies and salary expectations across the UK.
Below, we summarise the key trends that defined the market in 2025 and what they mean for the year ahead.
A Sector Focused on Stability and Productivity
Across 2025, manufacturing output stabilised in most UK regions, with many industries operating above pre-pandemic levels. Rather than aggressive growth, businesses focused on improving reliability, productivity and operational resilience.
Investment has largely centred on:
- automation and digital systems
- equipment reliability and preventative maintenance
- supply chain efficiency
- workforce upskilling
This shift has reinforced the importance of engineering talent that can directly impact uptime and performance; particularly maintenance, controls and engineering leadership roles. In short, companies are hiring more strategically, prioritising impact over headcount.
Automation Continues to Reshape Engineering Demand
Automation and Industry 4.0 adoption accelerated throughout 2025, particularly within FMCG, distribution, packaging and logistics environments. Businesses increasingly turned to technology to offset labour shortages and rising operational costs.
As a result, demand has grown for engineers who can bridge mechanical and electrical disciplines, including:
- Controls Engineers
- Multi-skilled Maintenance Engineers
- Project Engineers and Managers
- Reliability-focused Engineering Managers
Employers are placing a clear premium on electrical bias, PLC knowledge and fault-finding capability; skills that continue to influence salary growth across multiple sectors.
Skills Shortages Remain the Biggest Market Challenge
Despite softer economic conditions in parts of the year, skills shortages remained the defining issue for employers in 2025.
Many organisations reported:
- longer hiring timelines
- increased counter-offers
- stronger competition for experienced engineers
- greater reliance on internal development and apprenticeships
The talent gap is particularly noticeable at mid-to-senior levels, where experienced Engineering Managers, Supervisors and technical specialists remain in short supply.
As a result, retention has become just as important as recruitment. Employers are increasingly reviewing salaries, shift patterns and progression opportunities to keep key staff in place.
Hiring Trends: Quality Over Quantity
Hiring activity during 2025 was selective rather than expansive. Employers focused on roles that directly support operational continuity, including:
- Maintenance Engineers and Shift Engineers
- Field Service Engineers
- Health & Safety Managers
- Production and Engineering Supervisors
Rather than large recruitment drives, many businesses prioritised strengthening core teams and reducing downtime risk.
This approach has created a competitive market for experienced candidates, even during periods of wider economic caution.
Regional Manufacturing Strength Continues Across the UK
Manufacturing performance remained regionally diverse but broadly resilient.
Traditional industrial hubs across the Midlands and North continued to benefit from strong manufacturing infrastructure, while growth in aerospace, logistics and advanced manufacturing supported demand in other regions. High-volume FMCG and distribution environments remained particularly active employers throughout the year.
Across all regions, one theme remained consistent: engineering skills shortages outweigh regional economic differences.
Market Outlook for 2026: Cautious Optimism
Looking ahead, 2026 is expected to be a year of gradual improvement rather than rapid expansion.
Key expectations for the year include:
- Steady Hiring Growth: Businesses are likely to increase recruitment cautiously as confidence improves, particularly for maintenance, automation and engineering leadership roles.
- Continued Salary Pressure: Competition for experienced engineers is expected to remain strong, sustaining upward pressure on salaries for specialist and multi-skilled roles.
- Further Automation Investment: Technology adoption will continue as organisations seek productivity gains and operational resilience.
- Retention as a Strategic Priority: Employers will increasingly focus on career development, training and workplace flexibility to secure long-term talent.
Overall, the sector appears to be entering a stabilisation phase; one where companies investing in skills and technology are best positioned for growth.
What This Means for Employers and Engineers
For employers, success in 2026 will depend on attracting and retaining the right technical talent in an increasingly competitive market.
For engineers, opportunities remain strong, particularly for those developing automation, electrical or leadership capabilities.
Understanding salary benchmarks and market expectations has therefore never been more important.
Download the full UK Manufacturing & Maintenance Engineering Salary Guide for 2026
Our latest Salary Guide provides detailed insights into:
- UK regional hiring trends
- Salary benchmarks across key engineering roles
- Industry-specific pay comparisons
- Market outlook and workforce trends for 2026
👉 Download the full Salary Guide here to benchmark your salaries and stay ahead in a competitive market.