Navigating the storm: overcoming supply chain challenges in UK manufacturing
23 October 2025With global supply chains shifting and changing, how does the UK remain world-class in advanced manufacturing? That is the question posed by Melissa Conlon, director of supply chain research for the AMRC, who heads up a specialist team helping to develop stronger and more efficient supply chains.
The current challenges in the UK manufacturing supply chain are multifaceted and complex, reflecting both domestic issues and international pressures. Ongoing disruption from geopolitical tensions, pandemic aftershocks and global trade instability cause fluctuating prices, delayed deliveries and inventory shortages.
This creates uncertainty and operational risk for manufacturers trying to meet customer demand and plan long term. Additionally, manufacturers are facing challenges in rising operational costs when it comes to energy, raw materials, labour and compliance.
The shortage of skilled labour is a critical barrier to growth, whilst technology adoption and digital transformation are seen as tools for addressing inefficiencies and visibility. However adoption requires investment, a skilled workforce and integration.
As a result, UK manufacturing finds itself trying to navigate ‘a perfect storm’ of overlapping challenges where recovery - and more importantly growth - are dependent on strategic adaptations.
At the University of Sheffield AMRC, we have made a significant investment in our newly-established supply chain team, who conduct applied research focused on developing innovative materials, processes and technologies that improve supply chain efficiency, resilience and sustainability. This can include, but is not limited to, advancements in automation, AI and predictive analytics.
Kevin Shepherd, Kevin Ross and Andy Hinton make up the new team and work under my guidance and closely with our AMRC supply chain resilience theme lead, Dr Victor Shi. It is based at AMRC North West in Lancashire, but works across the entirety of the AMRC and has both a national and international reach.
The team, which has many years of experience in supply chains and comes from a background in nuclear supply chain development, is now working across all sectors of manufacturing, from defence and aerospace to food and drink. In addition to academic research, it applies practical solutions to supply chain challenges, often working with our partners on their shopfloors.
Bridging the divide
Team lead Kevin Shepherd has found the cross-sector nature of his work to be one of its most compelling elements. He began his career aged 16 in the automotive industry, later transitioning into the food and drink sector, followed by a role at the Manufacturing Advisory Service (MAS). Eventually, his journey led him into the nuclear industry as an industrial advisor.
“I wanted to use my industrial experience to support other businesses - and that’s exactly what brought me to the AMRC,” Kevin explains. “For me, it’s all about translating academic knowledge into practical application, bridging the divide between academia and the shop floor. That means getting innovation into operations - whether it's business strategy, production enhancements, or design improvements.
“Our team thrives on the industrial side of manufacturing - process optimisation, automation, digital innovation - it’s the kind of work I’m passionate about.
“In my opinion, that’s what manufacturing is all about. At the AMRC I bring a hands-on, shop-floor mindset to engineering, working alongside our academic partners to create meaningful change in the industry. We are strategic about strengthening supply chains, building resilience and reducing risk.
“This practical, boots-on-the-ground approach is what fuels our new team. Take our recent collaboration with a company that needed vacuum vessels and initially knew of only two UK suppliers. Through our network and research expertise, we identified 36 potential manufacturers. Narrowing that to eight gave the company a 300 per cent increase in viable options - dramatically expanding its supply base beyond what they had imagined possible.”
What are we here to do?
The supply chain team’s objectives are based primarily around:
- Collaboration and networking: Facilitating collaboration between manufacturers, suppliers and research institutions to share knowledge, best practices and resources.
- Research and development: Conducting applied research with a problem solving focus based on the specific challenges of a single manufacturer or an entire sector.
- Supply chain analysis: Using our digital manufacturing capability to develop tools and methodologies for better data collection and analysis, enabling manufacturers to gain insights into their supply chains.
- Sustainability solutions: Delivering solutions that promote sustainable practices and materials that minimise environmental impact. This may involve creating frameworks for circular supply chains, waste reduction and energy efficiency, aligning with regulatory requirements and consumer expectations.
- Risk management frameworks: Developing guidelines and frameworks for manufacturers to assess and manage risks associated with supply chain disruptions. This can include strategies for diversification, contingency planning, scenario modelling and pivoting into new supply chains.
- Prototype and pilot programs: Supporting manufacturers in testing new technologies and practices through pilot programs.
- Digital transformation support: Encouraging and assisting manufacturers in adopting digital tools and technologies that enhance supply chain visibility and responsiveness. This includes promoting industry 4.0 practices involving internet of things (IoT), automation and data analytics.
- Cross-industry insights: Sharing knowledge and experiences from different sectors, enabling manufacturers to learn from successful practices in other industries.
And while it is not a current activity, the team would also welcome the opportunity to engage with policymakers to shape regulations that support supply chain resilience. The team, through its current projects, can contribute data and insights to inform better decisions regarding trade policies, tariffs and support for manufacturing sectors.
By delivering the above interventions, we can significantly contribute to overcoming supply chain challenges, enhancing efficiency and resilience whilst fostering sustainability and innovation within the UK manufacturing sector.
Kevin says one of the comments he least likes to hear is ‘we don’t make anything in the UK anymore’.
"Actually, the UK still boasts a vibrant manufacturing sector with companies innovating in defence and aerospace, pharmaceuticals, and automotive industries. These sectors are thriving and contributing significantly to the economy,” he said.
"While traditional manufacturing may have declined, the UK has pivoted towards advanced manufacturing and technology-driven production. This shift emphasises high-value goods and innovative processes, which are very much alive.”
Kevin Ross agrees. He said: “Manufacturing today is global, and many UK-based companies operate within international supply chains. This approach allows them to leverage global resources while maintaining production capabilities at home.
“Many UK manufacturers are leading in research and development, particularly in sustainable practices and green technologies. This focus on innovation is reshaping the UK manufacturing landscape.
“Manufacturing in the UK continues to create jobs, particularly in emerging fields such as robotics and automation. These sectors provide skilled employment opportunities and are integral to the economy.”
Reskilling presents a significant opportunity across transferable skills, but it’s far from a new challenge. For years, engineers have been retiring faster than the next generation can be trained. In response, companies are increasingly investing in apprenticeship programmes and developing their own training schemes, recognising the potential for experienced staff to pass on critical knowledge and expertise.
Kevin says: “This makes employee retention more crucial than ever - without seasoned professionals, there’s no one left to train and mentor incoming talent.”
Andy shares this concern, viewing the skills gap as a risk that could exacerbate capacity issues. He said: “We need to spark interest as early as primary school. While AI may one day operate machinery, true engineering lies in understanding how things work - physically and conceptually - and having the curiosity to explore how they fit together.”
Industrial placements offer invaluable, hands-on learning experiences. But as Andy emphasises, that legacy knowledge from those still in industry must also be captured and transferred. The generational divide calls for deliberate succession planning. How do we ensure that standard operating procedures and processes aren’t locked away in someone's head, but shared across the organisation?
Sector startups
To partially negate the need for succession planning, a wave of innovative startups in the UK manufacturing sector is challenging the narrative of decline. These companies are leveraging technology and creativity to deliver cutting-edge products and solutions.
These new players are transforming traditional industrial models by adopting advanced technologies like AI, robotics and additive manufacturing (3D printing) to streamline production and customise goods. They are pioneering the utilisation of sustainable practices such as circular design, low-waste operations and biodegradable materials to meet environmental goals, and are fostering collaboration between sectors.
In conclusion, the future of advanced manufacturing in the UK is contingent upon the ability to adapt and innovate amidst the complexities of a shifting global landscape.
While challenges such as geopolitical tensions, rising costs and skilled labour shortages pose significant hurdles, they also present opportunities for growth and transformation within the sector.
The establishment of dedicated supply chain teams like the one we have here at the AMRC underscores a proactive approach to tackle these challenges through applied research, collaboration and the promotion of sustainable practices.
As exemplified by the efforts of Kevin Shepherd, Kevin Ross and Andy Hinton, bridging the gap between academia and industry is vital to fostering a resilient manufacturing ecosystem. By leveraging cross-industry insights, developing risk management frameworks and facilitating digital transformation, the AMRC is positioned to empower manufacturers to navigate these tumultuous times effectively.
Furthermore, the commitment to training and reskilling the workforce indicates a recognition of the essential human element in manufacturing. The University of Sheffield AMRC Training Centre focuses on providing high-quality training and education in advanced manufacturing and was established to address the ongoing skills gaps in the sector.
The potential for innovation from new startups, and the ongoing evolution of established companies demonstrate that the UK remains a hub of manufacturing prowess, constantly redefining its capabilities.
Ultimately, by embracing change, prioritising collaboration and investing in sustainable solutions, the UK can not only sustain its manufacturing legacy, but also emerge as a global leader in advanced manufacturing practices.
The narrative of decline is outdated; instead, the UK is brimming with potential, determined to innovate and prove that it remains a critical player in the global manufacturing arena.
