UK energy manufacturers have seen a sharp rise in revenue, yet the latest data suggests this comes with a shadow of caution over future demand and profitability.
In software management company Unleashed’s manufacturing health index, a 72% year-on-year revenue growth has been recorded – the strongest annual increase among the UK manufacturing sectors ever tracked.
However, purchase orders were still 44% lower than the same quarter last year, suggesting the quarterly surge doesn’t mean that demand has recovered.
Gross margins fell by around 3% year-on-year, meaning manufacturers are generating more revenue but are facing pressure on the profitability of those sales – as a result manufacturers are keeping inventories tighter despite the increase in revenue, causing stock on hand to fall 57% YoY.
The report points to a mixed picture for UK energy manufacturing – strong revenue growth and a recent jump in orders are being offset by weaker margins, lower stock levels and caution around future demand.
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