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  • How UK industries are rethinking agility in 2026

Industrial Agility Assessment Results | How UK industries are rethinking agility in 2026

We talk to industry leaders as agility hits a five-year low, and about the findings from the latest report.

Introduction

This four-part Expert View interview series brings together leaders from Microsoft, Weetabix, and HSO to analyse the findings of the 2025 Industrial Agility Assessment, sponsored by HSO and conducted by The Manufacturer.

With agility at a five-year low, only 45% of manufacturers and distributors now describe themselves as highly or extremely agile. The panel explores the root causes, including supply chain disruption, cost pressures, and talent shortages. The discussion highlights how 64% of manufacturers are prioritising AI adoption, yet face major barriers in skills and data readiness, and offers practical advice for navigating these challenges in 2026 and beyond.

Part 1 | Navigating Turbulence: Industrial Agility in Focus

Industrial Agility at Tipping Point: What’s Holding Industry Back? 

James opens the discussion with headline statistics from the 2025 Industrial Agility Assessment, highlighting the sector’s five-year low in agility and the erosion of confidence and flexibility.

Matt, Claire, and Suraj discuss the main drivers behind this decline, such as geopolitical instability, supply chain issues, and the struggle to maintain pace under constant strain. 

"Manufacturers are by nature the most optimistic and resilient people you’ll meet - this is a sector that thrives on overcoming challenges and finding new ways forward."

Matt Birtwistle Industry Director, HSO

Part 2 | Digital Transformation & AI Adoption

From Big Bang to Pragmatic Change: The Future of Digital Transformation 

The conversation shifts to how manufacturers are moving from large-scale transformation projects to smaller, resilience-focused initiatives. Claire highlights that 64% of manufacturers are prioritising AI adoption, but skills gaps and data readiness remain major barriers.

She details Microsoft’s support for SMEs through AI experience accelerators and skills programs. Suraj shares Weetabix’s approach to D365, focusing on data quality, user experience, and minimising single points of failure. Matt offers practical steps for quick wins in automation, emphasising the importance of continuous improvement. 

Manufacturers are shifting toward more pragmatic digital transformation—focusing on smaller, highvalue initiatives like predictive maintenance, supply chain visibility, resilience and smarter planning, rather than largescale disruptive programmes

Clare Brown, Director of Industry, Manufacturing

Part 3 | Supply Chain, Skills, and Sustainability 

Resilience Under Pressure: Supply Chain, Skills, and Sustainability 

Suraj discusses the ongoing supply chain challenges, balancing cost and resilience, and the fierce competition for supply chain talent, echoing the assessment’s findings on talent shortages.

Claire explains how digital tools and AI-driven optimisation can help companies meet sustainability goals while controlling costs. Matt and Suraj address strategies for closing the skills gap, including upskilling and change management, in line with the assessment’s call for workforce development. 

We are in a challenging world… It’s a battle on all these fronts you constantly have to fight.

Suraj Subbarao, Head of Digital Transformation, Weetabix

Part 4 | Future Outlook: Government, Technology & Human Side of AI 

Future-Proofing Manufacturing: Incentives, Technology, and People 

The panel explores the impact of government incentives and shifting regulations, the role of emerging technologies like agentic AI, and the importance of continuous improvement.

The session concludes with advice for leaders facing uncertainty in 2026 and a discussion on the human side of AI, stressing the need to enhance trust, creativity, and well-being, key themes from the 2025 Industrial Agility Assessment. 

Unlock practical advice from industry leaders and discover how digital transformation and AI can drive agility and resilience.

Download the Industrial Agility Assessment for essential strategies to help your business adapt and grow.

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