The latest CBI Industrial Trends Survey, published on 22 October 2026, says UK manufacturing output is expected to stabilise over the next three months, but costs are still rising fast and orders are still falling. Here’s a plain-English look at the figures and what they mean for anyone buying or making steel parts.

What the CBI survey found

The quarterly survey is based on responses from 263 manufacturing firms. Output fell in the three months to October (a balance of -10%), and the CBI says metal products was one of the sub-sectors driving that fall, along with food, drink and tobacco, and chemicals. Looking ahead, firms expect output to be broadly flat in the three months to January (-1%), which the CBI describes as the strongest expectation since February 2025.

Other key points from the survey:

• Orders are still falling, but more slowly. Total new orders fell at the slowest pace since April 2025 (-16%, from -24% in July).
• Costs remain high. Average costs rose at a rapid pace (+60%) and are expected to stay elevated, running well ahead of selling prices, which the CBI says points to a continuing squeeze on profitability.
• Skills are a growing constraint. 32% of firms said a shortage of skilled labour could limit output, the highest since January 2025.
• Investment plans are weak. Firms expect to cut investment in plant and machinery (-34%) over the year ahead.
• Headcount has steadied. Employment was broadly flat, the first time in two years it hasn’t fallen, and firms expect a modest rise.

The CBI’s Senior Economist, Cameron Martin, said there are “growing signs of stabilisation for manufacturers”, but that with orders still falling and labour shortages picking up, “significant challenges remain”.

What it means for UK manufacturers and steel part buyers

If output is levelling off while costs stay high and skilled people are harder to find, many firms will be looking hard at what they make in-house and what they buy in. A few practical points:

• Buy in the parts that tie up skilled people. Outsourcing cut and folded parts can free your own team for assembly, finishing and the jobs only they can do.
• Avoid big up-front spend. With investment intentions weak, using a subcontractor’s laser and press brake can make more sense than buying your own.
• Order closer to need. Quick quotes and short lead times help keep stock and cash under control when orders are unpredictable.
• Check your drawings and nesting. When costs are rising, small design tweaks that save material or a process step really add up.

UK-made in Shaw, Oldham

At Kaizen Engineering we laser cut, fold on our CNC press brake and fabricate made-to-order steel parts at our works in Shaw, Oldham. We offer same-day quotes and same-day laser cutting, whether you need a one-off, a short batch or regular repeat work. Find out more about our laser cutting and steel fabrication services.

Send us your drawing

Email your drawing to sales@kaizen-eng.com with the material, thickness and quantity, and we’ll come back with a quote the same day.

Kaizen Engineering, Thomas Street, Shaw, Oldham OL2 8PG
Made Up North. Built to Last.

Sources

• CBI, “Output to stabilise but profitability squeeze to continue – CBI Industrial Trends Survey” (22 October 2026): cbi.org.uk