Johnanthan Dudley, partner and head of SME Corporates, said that 2026 was set to be a difficult and challenging year for manufacturers, but there was much they could do to plan and offset difficulties.
He said: “Especially over the festive break, watch your slow payers and don’t let them pull the wool over your eyes.
“Cash will be king more than ever in 2026, and you need to ensure you are on top of your invoices owed on a daily basis.”
His second suggested resolution would be to ensure that manufacturers check they have sufficient supply of materials to fulfil their order books in the first quarter of 2026.
Jonathan said: “Global supply chain volatility, particularly in metals, can cause nasty shocks, so again you need to be on top of your stock control on a day-to-day basis.”
He added that all manufacturers should also be taking a long hard look at their manufacturing capability and could take steps to consider their prospects within the defence industry supply chain.
He continued: “There is new funding coming down the line from April as part of the UK’s Industrial Strategy. With continuing global uncertainty, the MOD and major defence suppliers – known as ‘primes’ – could be looking to domesticate their supply chains as much as possible.
“It is a matter of security and also keeps the money within the UK, generating both jobs and tax revenues.”
His fourth recommendation is that employers take the festive break and January as a chance to do a proper assessment of the key players in their workforce.
Jonathan concluded: “Who is coming up for retirement and what skills will you lose when they leave?
“This process should run from the top of the firm to the bottom and companies should ensure they are making best use of their Apprenticeship Service Account.”
