# UK Factory Investment Survey Highlights Energy Costs and Rising AI Interest

https://cncoutlook.com/news/uk-manufacturing-investment-energy-ai-make-uk-2026/

By CNC Outlook Editorial · 2026-10-28

Make UK and RSM report that high energy costs weigh on investment sentiment even as manufacturers prioritize AI. A look at the implications for UK CNC workshops.

British CNC subcontractors evaluating new capacity face two opposing pressures: the need to improve productivity and the cost of keeping machines running. Make UK and RSM's Investment Monitor 2026, reported by trade press on 27–28 October, suggests investment interest remains but that industrial electricity prices are an important barrier to expansion in the United Kingdom.

The principal survey findings were reported in a [Make UK statement distributed on 27 October 2026](<https://www.t.pandct.com/news/budget-must-cut-energy-costs-to-reverse-decline-in-uk-investment-appeal-manufacturers-warn>)

## What the survey says

In the survey, 56% of respondents said Britain had become a less attractive place to invest over the preceding three to five years.

Among manufacturers considering a major capacity increase over the following 12 to 24 months, 62% nevertheless identified the UK as their preferred location for expansion. These are surveyed views, not audited investment totals or proof that projects will proceed.

The report also found that 41% identified artificial intelligence as an investment priority, up from 27% in the previous survey. Average plant and machinery investment as a share of turnover was described as falling from 6.8% to 6.4%, with R&D investment falling from 6.2% to 5.1%. The figures describe broad manufacturing respondents; they are not statistics specifically for CNC-only firms.

## Why the findings matter for machine shops

Electricity matters directly to shops running machining centres, compressed-air systems, coolant pumps, cleaning systems and inspection equipment. Even when modern automation could add productive hours, an owner must be comfortable with financing costs, energy bills, training and expected demand before committing to a new cell.

A decision to invest in CNC machinery should therefore be considered alongside the production plan. More unattended spindle hours will help only if orders, process capability and staffing support them. Equally, AI investment may include planning, programming, quoting or maintenance software rather than robotic machine tending; the survey's AI category does not disclose the exact use case for each business.

## Policy requests versus confirmed measures

Make UK called for electricity policy levies to be shifted into general taxation, wider coverage for the British Industrial Competitiveness Scheme and additional measures to support recruitment and digital adoption. These are advocacy positions, not already enacted changes announced by this survey. Workshops should consult current government guidance before budgeting for potential future support.

The practical takeaway is uncertainty, not paralysis. A workshop with a near-term investment case can model power cost, shift coverage, machine utilization, program preparation time and funding options under several scenarios. That exercise is more useful than treating one survey response as a forecast for its own order book.

## Sources & further reading

1. Make UK (via Process and Control Today), 27 October 2026: [Investment Monitor survey findings and policy recommendations](<https://www.t.pandct.com/news/budget-must-cut-energy-costs-to-reverse-decline-in-uk-investment-appeal-manufacturers-warn>)

2. Machinery Market, 28 October 2026: [Make UK stresses budget must cut energy costs for UK manufacturing](<https://www.machinery-market.co.uk/news/43737/Make-UK-stresses-budget-must-cut-energy-costs-for-UK-manufacturing>)

Report coverage dates: 27–28 October 2026. The findings concern manufacturers' survey responses, not a factory investment completed on those dates.

## Sources & References

- [Make UK Stresses Budget Must Cut Energy Costs for UK Manufacturing](<https://www.machinery-market.co.uk/news/43737/Make-UK-stresses-budget-must-cut-energy-costs-for-UK-manufacturing>) — Machinery Market (2026-10-28T12:00:00Z)

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