Manufacturers lift product development investment in 2026

Manufacturers are putting more money into product development in 2026 because automation, digital tools and AI promise big productivity gains, but a widening skills gap is forcing firms to hire and reskill fast to capture that value.
Author

Linda Keys

Job Title

Senior Product Designer

What's driving manufacturing investment in 2026?

The case for investing is huge, and the UK is starting from behind. We rank just 24th in the world for robotics density, yet targeted innovation and digital investment could add £150 billion to the UK's GDP by 2035 Making it Smarter: Global Lessons for Accelerating Automation and Digital Adoption in UK Manufacturing - Make UK. That gap between where we are and where we could be is exactly why boards are loosening budgets for product development this year.

The adoption picture tells the same story. UK utilisation of industrial robots substantially lags internationally, at only 101 robots per 10,000 workers in 2020 Smart Machines Strategy 2035 - GOV.UK. And the technology that gets the most headlines is barely in use: only 2% of manufacturers say AI is widely embedded across their operations The Manufacturer / Make UK – AI, Skills and the Future of UK Manufacturing. For firms that move early, that's a wide-open opportunity.

Which roles and skills are manufacturers hiring for?

When product development investment rises, so does demand for people who can design, build and run new systems. Six in ten (59%) manufacturers cited automation and half (50%) cited wider digitalisation as the trends changing their jobs and skills needs Make UK – 2030 Skills: Closing the Gap. The same research shows where the real hunger lies: 74% expect demand for cognitive and meta-cognitive skills, the thinking and problem-solving kind, to increase by 2030 Make UK – 2030 Skills: Closing the Gap.

Reskilling existing teams is a big part of the plan, not just external hiring. 40% of manufacturers are looking to upskill their current workforce, specifically for redeployment as a result of automation and digitalisation, and that figure rises for firms with more than 1,000 employees Make UK Executive Survey 2026. The message is clear: investment in product and process goes hand in hand with investment in people.

What is the biggest barrier to AI adoption in manufacturing?

It isn't the technology. It's people. Over 50% of manufacturers cite skills shortages as the main barrier to AI adoption The Manufacturer / Make UK – AI, Skills and the Future of UK Manufacturing. So the firms raising their product development budgets in 2026 face a simple question: can they find and keep the talent to turn that spend into results? If they can't, the productivity gains stay on the whiteboard.

How can manufacturers hire well for these roles?

Start with the skill, not the job title. With 74% of firms expecting more demand for cognitive and meta-cognitive skills by 2030 Make UK – 2030 Skills: Closing the Gap, the people who will matter most are adaptable problem-solvers, not just those with a perfect CV match. Write job adverts around the problem you want solved and the systems the person will own.

  • Define the capability gap first: what does this person need to do that your current team can't, today?
  • Blend hiring with reskilling, since 40% of manufacturers are already upskilling existing staff for redeployment Make UK Executive Survey 2026.
  • Move quickly: in a tight market, the best people are off the market fast, so slow processes lose them.
  • Look wider than your usual talent pool, because engineering, data and automation skills now overlap across sectors.

Speed and reach are where most hiring processes fall down. When over half of manufacturers already blame skills shortages for stalled AI adoption The Manufacturer / Make UK – AI, Skills and the Future of UK Manufacturing, a two-month hiring cycle is a cost you can't afford when the competition is moving.

Where does the right hiring partner fit for manufacturing?

The right partner helps you move at the pace your product roadmap demands. Reed.ai searches 15 million candidates to find the engineers, data and automation specialists behind your next product, and manages the process end to end: a ranked shortlist in under 30 seconds, matched candidates contacted in under a minute, and interviews booked in under three minutes. Our recruitment agent manages recruitment end to end for 8% on a successful hire, with no monthly fee and no upfront cost. Start your search today.

Sources

Linda Keys
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