UK manufacturing AI investment intention rises to 41%, energy costs constrain expansion

en.Wedoany.com Reported - In late October, UK manufacturing organization Make UK and audit and consulting firm RSM jointly released the "2026 Manufacturing Investment Monitor" survey report. The survey shows that 56% of UK manufacturing companies believe the country's investment attractiveness has declined compared with the past three to five years, and 41% of surveyed companies list artificial intelligence as a future investment priority, up from 27% the previous year. Industrial electricity prices, the tax environment and production costs continue to affect corporate investment decisions.

Among companies planning to significantly expand production capacity in the next 12 to 24 months, 62% still hope to prioritize increasing capacity in the UK. Make UK points out that UK industrial electricity prices are among the highest in Europe, and manufacturers are calling on the government to reduce electricity costs and expand the scope of industrial energy support measures.

Willingness to invest in artificial intelligence rose by 14 percentage points, ranking alongside production equipment and workforce skills training as key investment priorities. The survey also shows that manufacturing companies are reducing the proportion of long-term capital investment in operating revenue, with the share of production equipment investment falling from 6.8% to 6.4% and the share of R&D investment falling from 6.2% to 5.1%.

The impact of tax policy on manufacturing investment has further increased. 35% of surveyed companies believe that a more favorable tax environment would prompt them to expand investment, compared with 24% the previous year. Companies are also watching tax incentives for equipment investment, employer National Insurance contributions and support policies for manufacturing energy costs.

Make UK is calling on the UK government to shift part of the additional charges under electricity policy to general taxation, expand the coverage of the British Industrial Competitiveness Scheme (BICS), and implement relevant support measures earlier. The organization also recommends expanding the Made Smarter manufacturing digitalization support program to include AI applications and energy efficiency improvements within its scope.

Mike Thornton, head of RSM UK's industrial business, believes that expanding BICS support for manufacturing companies facing persistently high energy costs would help improve their investment conditions. Make UK Chief Executive Stephen Phipson called on the government to enhance the competitiveness of UK manufacturing investment by reducing industrial electricity prices, adjusting employment cost policies and supporting technology investment.