UK Manufacturing Edges into Growth: What It Means for the South West

UK Manufacturing Edges into Growth: What It Means for the South West

The latest S&P Global UK Manufacturing PMI shows the sector returning to very modest growth, with a reading of 50.2 in November 2025. This is the first expansion since September 2024 and reflects stabilising demand, rising output and improving business confidence.

While this is a welcome signal after a prolonged slowdown, the picture for hiring is more complex. Beneath the headline improvement, manufacturers remain cautious, particularly around workforce expansion.

Demand Is Stabilising, but Growth Is Narrow

Output has increased for a second month, driven almost entirely by investment goods manufacturers, including advanced engineering, aerospace, machinery and specialist equipment sectors. These industries are strongly represented across the South West and are likely to be early beneficiaries of improving conditions.

Consumer and intermediate goods producers remain subdued, suggesting uneven recovery across the broader market.

New orders have finally stabilised after 13 months of decline, with domestic demand improving even as export orders continue to fall. Business optimism has climbed to a nine-month high, supported by expectations of market stabilisation, new product pipelines and investment in technology.

Hiring Remains Weak Despite Improving Sentiment

Despite better output data, employment fell for the thirteenth consecutive month. Employers are delaying hiring decisions due to:

• cost pressures
• higher employer NICs and National Minimum Wage adjustments
• uncertainty following the Autumn Budget
• continued surplus capacity, reflected in declining backlogs

In practical terms, this means gradual improvement in vacancies rather than an immediate rebound. Replacement hiring is returning first, but large-scale recruitment remains the exception rather than the rule.

Implications for the South West Manufacturing Market

Although the PMI does not provide regional data, the South West’s industrial profile allows us to infer several key trends:

1. Stronger outlook for engineering-led sectors

The region’s strengths in aerospace, defence, marine technologies and precision engineering align with the investment goods segment, which is currently showing the fastest growth. This is where recruitment activity is likely to pick up first.

2. SME caution will persist

The PMI highlights that only large firms are seeing output growth. South West manufacturing includes a high proportion of SMEs, which are still battling supply chain disruption and tight margins.

Hiring here will remain selective and skills-focused.

3. Supply chain stress is still a major factor

Longer vendor lead times, raw material shortages and ongoing logistics challenges affect the South West disproportionately due to its geographic position and specialist supply chains.
As a result, demand continues to grow for:

• procurement specialists
• supply chain planners
• logistics and inventory coordinators

4. Skills shortages remain, even in a subdued hiring climate

Engineering, maintenance, automation, quality and technical project roles remain difficult to fill. As output improves, these shortages will re-emerge quickly.

What Employers and Candidates Should Expect Next

For employers:

• Expect a cautious uptick in recruitment over the next quarter, especially for technical and engineering roles.
• Workforce planning will become more important as the sector transitions from stagnation to gentle recovery.
• Competitive hiring for specialist skills will return faster than broader market growth.

For candidates:

• Engineering, maintenance, quality and supply chain skills continue to offer strong career prospects.
• Opportunities in aerospace, advanced engineering and specialist manufacturing are likely to increase first.
• Now is a good time to prepare for movement in the market: update CVs, upskill in digital and automation technologies, and reconnect with specialist recruiters.

How Cathedral Appointments Can Help

As the region’s leading recruitment partner, we support manufacturers across the South West in navigating shifting hiring trends. Whether you’re planning for growth or seeking your next role in engineering, production or technical operations, our team is here to help.

To discuss your workforce needs or explore new opportunities, contact Dan Marting at Cathedral Appointments today.