Article

UK manufacturers: strengthening resilience across cyber, supply chain and people risk

Manufacturers are used to operating under pressure. Explore how you can strengthen resilience across cyber, supply chain and people risk.

UK manufacturers are used to operating under pressure. Volatile input costs, shifting demand, labour shortages, production downtime and geopolitical uncertainty all create a demanding environment. According to our 2026 UK Business Risk Report, the sector’s top concerns are increasingly focused on resilience: 42% of manufacturing leaders are concerned about cyber risk, and 40% are concerned about operational and supply chain risk. Those figures reflect a simple truth - in manufacturing, disruption rarely stays contained for long.

The report also shows that manufacturers are worried about a broad mix of threats:

44% are concerned about cybercrime,
32% about talent acquisition and retention,
39% about failure of key suppliers, 46% about brand damage, and
38% about economic instability in the markets they operate in.

Taken together, these findings suggest a sector that understands how interconnected its risks have become.

Cyber risk: protecting production, data and continuity

With 42% of respondents identifying cyber risk as a major issue, manufacturers are clearly aware that digital threats can halt physical operations. A cyber incident can affect production lines, logistics, customer systems, engineering data and intellectual property. In a sector where uptime matters, even a short outage can have serious cost and reputational consequences.

The fact that 44% are specifically concerned about cybercrime reinforces the need for robust controls. Ransomware, phishing and supply chain attacks remain common threats, particularly where older operational technology sits alongside newer IT systems. Manufacturers should consider whether their cyber strategy is designed not only to prevent incidents, but to recover quickly if one occurs.

Practical considerations include:

reviewing access controls and multifactor authentication;
segmenting IT and operational technology networks where possible;
testing incident response and recovery plans;
keeping patches, backups and asset inventories current;
training employees to recognise cyber threats.

Supply chain risk: resilience depends on your weakest link

Operational and supply chain risk is almost as prominent, with 40% of respondents concerned overall and 39% specifically worried about the failure of key suppliers. That concern is well founded. Manufacturers depend on complex networks of suppliers, logistics providers, maintenance partners and technology vendors. If one part of that chain fails, the production impact can be immediate.

The lesson is that supply chain risk management can no longer sit only in procurement. Manufacturers need visibility across all tiers of suppliers and a clear understanding of which dependencies are truly critical. Questions to ask include: Which suppliers would stop production if they failed? Which have financial fragility or geographic concentration? Where are the single points of failure?

Key actions might include:

visibility across the supply chain, including mapping critical suppliers and alternative sources;
reviewing supplier financial health and operational resilience;
building contingency inventory for high-impact components;
including resilience requirements in contracts;
testing logistics and recovery scenarios.

People risk: talent remains a strategic issue

While manufacturing is often seen as asset-heavy, the report shows that people remain central to resilience. 32% of respondents are concerned about talent acquisition and retention. That is especially important in a sector that relies on skilled engineers, technicians, production managers and safety-critical roles.

The actions leaders have taken in the last 12 months suggest that this is already on the agenda. The most commonly reviewed areas were HR and employment law (52%), insurance coverage (51%), staff levels (49%), pay (48%), health and safety management (47%) and cyber security controls (47%). That is a useful sign that manufacturers are taking a broad view of risk, not just focusing on external threats.

Looking ahead, planned reviews over the next 12 months include cyber security controls (22%), employee training (21%), health and safety management (20%), mental health support (19%), ESG framework (19%) and M&A activity (19%). These plans point to a growing recognition that workforce capability, culture and wellbeing are part of operational resilience.

Strategic and financial pressure: brand and markets matter

Manufacturers are also concerned about brand damage (46%), which shows that reputation matters as much as operational performance. A quality failure, safety incident, cyber breach or supply disruption can all damage customer confidence quickly. In a competitive market, trust can be lost faster than it is built.

Economic pressure is another significant factor, with 38% worried about economic instability in their markets. That means manufacturers need robust forecasting, pricing discipline and flexibility in planning. Scenario analysis can help leaders prepare for weaker demand, higher costs or delayed capital investment.

Confidence is decent, but not universal

Encouragingly, 55% of respondents say they are confident in their business’s risk management framework to navigate challenges. But that still leaves 45% who are not confident - a sizeable group, and a sign that there is real room to improve.

The best-performing manufacturers will be those that turn risk management into a practical discipline: understanding dependencies, stress-testing assumptions, and reviewing controls regularly across cyber, supply chain, people and financial risk.

In 2026, resilience is not just about avoiding disruption. For manufacturers, it is a competitive advantage.

What our experts have to say

“Manufacturers are no longer managing risk in silos, cyber resilience, supply chain stability, and workforce capability are now all part of the same business challenge. Businesses who will thrive will be those who anticipate disruption early, strengthen controls across the business, and turn resilience into a source of competitive strength.

Manufacturing businesses are facing a broad set of interconnected risks, with cybercrime emerging as the top concern. This reflects the sector’s growing reliance on connected systems, automation, and digital supply chains, all of which increase exposure to operational disruption and data compromise. Understanding the risk of a cyberattack is essential for businesses of all sizes. It is critical to strengthen cyber resilience through continuous monitoring, incident response, and tailored planning, while investing in workforce skills to address cyber and digital capability gaps.

Economic instability overall remains a significant pressure point, demand volatility, inflation, and cost pressures of raw materials, energy costs as well as increases in people related costs creates significant uncertainty. A review of critical business costs, property reinstatement costs, and business interruption indemnity periods is essential, while solutions such as product recall and credit insurance can help protect cash flow and support the bottom line.

Operational also resilience remains a critical issue as manufacturers are concerned about the failure of key suppliers, underscoring the continued fragility of supply chains and the knock-on impact of supplier concentration, geopolitical uncertainty, and logistics disruption. Manufacturers would be wise to understand their supply chain risk in detail, with clear visibility across tier 1, 2, and 3 suppliers, to identify vulnerabilities early, strengthen resilience, and reduce the impact of disruption.

Brand damage is also a major concern with manufacturers highly aware that incidents affecting product quality, safety, service continuity, or ESG performance can quickly erode customer trust. By identifying exposures, strengthening resilience and crisis response planning, businesses can protect reputation and continuity.

Finally, the combined pressures of a shortage of skilled labour, an aging workforce, and ongoing challenges in attracting and retaining talent with the right capabilities as manufacturers transform continue to pose a significant challenge. To grow, adapt and retain their workforce and improve employee productivity, manufacturers would benefit from reviewing and tailoring employee benefits and mental health and wellbeing programs to reflect today’s diverse workforce, considering differences in age, life stage, and personal needs.”

— Kasia Lipinska: Automotive and Manufacturing Industry Leader

Corporate business team and manager in a meeting

Podcast

UK manufacturers: strengthening resilience across cyber, supply chain and people risk

Cyber risk: protecting production, data and continuity

Supply chain risk: resilience depends on your weakest link

People risk: talent remains a strategic issue

Strategic and financial pressure: brand and markets matter

Confidence is decent, but not universal

What our experts have to say

Related insights

Risk in Context Podcast: Building manufacturing resilience amid evolving trade agreements

Trade credit insurance: Supporting UK manufacturing & supply risks

Driving Towards Net-Zero: Skills and Workforce Strategies in the Automotive Industry

Exploring supply chain challenges in retail