Costs Hit 30 Year High as Engineering Firms Still Fail to Convert Online

UK manufacturing has entered 2026 in growth territory, with PMI reaching 51.8, its highest level in over a year, but rapidly rising fuel and energy costs are exposing a critical weakness across the sector. Underperforming and poorly maintained websites, according to Craig Murphy, Director of ALT Agency.

Recent data from Make UK shows the sector has seen renewed momentum, with export orders rising for the first time in four years. However, this recovery is now being squeezed by escalating cost pressures, with input costs increasing at their fastest rate since 1992.

At the same time, global fuel price volatility linked to geopolitical tensions in the Middle East is adding further strain to margins, forcing manufacturers to reassess efficiency across their operations.

“Manufacturers are cutting costs across operations, supply chains and staffing but are ignoring the digital systems that generate demand,” said Craig Murphy. “A neglected website actively loses you enquiries every day.”

With oil prices climbing above $100 per barrel and input costs rising at their fastest pace in decades, manufacturers are facing a squeeze on margins. Sector growth remains constrained, with only a small proportion of businesses able to significantly increase production capacity.

This has shifted the focus toward efficiency but digital performance is still being neglected. Unlike machinery or production lines, website performance often degrades silently over time.

• Search visibility drops as SEO is not maintained
• Load speeds slow due to outdated infrastructure
• User journeys break or become inefficient
• Security and compliance risks increase
• UK Manufacturing Legal and Compliance Risks Increase

UK manufacturers need to be aware that:

• Public sector organisations have faced enforcement under accessibility regulations
• The Government Digital Service has required compliance with WCAG standards
• The Equality and Human Rights Commission can investigate breaches under the Equality Act 2010

From Domino’s Pizza to major retailers, businesses have already faced legal action over inaccessible websites, highlighting a risk many UK manufacturers are still overlooking.

Growth vs Pressure: A Critical Moment

According to the Office for National Statistics, UK manufacturing generated over £452 billion in sales in the latest available data, underlining the scale of the sector.

However, growth expectations remain modest, with forecasts suggesting limited expansion potential in 2026. At the same time, procurement behaviour continues to shift, with buyers increasingly researching suppliers online before making contact. This is making website performance a critical factor in winning new business.

As cost pressures intensify and competition increases, Craig Murphy warns that businesses failing to address digital performance, compliance risks are compounding external challenges.