Key takeaways

• UK Manufacturing PMI reached 53.7 in April 2026, its highest since May 2022
• Six consecutive months of expansion, the longest run since 2022
• Manufacturing employment rose for the first time since October 2024
• New orders growing at one of the fastest rates in four years
• Growth is broad-based across consumer, intermediate and investment goods
   

What the data shows

The S&P Global UK Manufacturing Purchasing Managers' Index rose to 53.7 in April 2026, its highest reading since May 2022 and a 47-month high. Released on 1 May, the figure beat market expectations and marked the sixth consecutive month above the 50.0 threshold that separates expansion from contraction.

Four of the five sub-indices pointed to improved conditions. Output expanded for the sixth time in seven months. New orders grew at one of the fastest rates in four years, with demand coming from both domestic customers and export markets including the US, China, Japan and India.

The employment sub-index is the most significant detail for the talent market. Manufacturing headcount rose in April for the first time since October 2024. After 18 months of net decline, factories are hiring again.
 

Why this recovery looks different

Previous PMI recoveries in 2023 and early 2024 faded quickly. This one is building on a different foundation.

The government's Modern Industrial Strategy and Advanced Manufacturing Sector Plan are now in delivery, and they have materially improved manufacturer confidence. The Make UK and PwC Executive Survey 2026 found that nearly two-thirds of manufacturers believe the opportunities ahead outweigh the risks, and 63% said they would bring forward investment as a direct result of the strategy.

In April, the government also expanded the British Industrial Competitiveness Scheme to cover more than 10,000 electricity-intensive manufacturers, cutting energy costs by up to 25% from April 2027. The scheme covers automotive, aerospace, steel, pharmaceuticals and nuclear fuel processing, among others, and is backdated with a one-off payment. For many manufacturers, this removes the cost pressure that has most directly weighed on hiring decisions.

Rob Dobson, Director at S&P Global Market Intelligence, described the result plainly:

April saw the growth rate of the UK manufacturing sector recover after being hit by the impacts of the war in the Middle East during March. The headline PMI rose to a near four-year high, as the trends in output and new orders strengthened. Staffing levels were also increased for the first time in 18 months.
 

The capital behind the numbers

The PMI reflects demand that is already running. Across the sectors where engineering talent is most sought after, multi-billion pound capital programmes are moving from planning into active delivery.

In automotive, the SMMT has identified a £4.6 billion supply chain opportunity as manufacturers scale up electric vehicle production. Seven new EV models are due from UK plants in 2026 alone. Battery manufacturing capacity is being added at three gigafactory sites: Agratas in Somerset, AESC in Sunderland, and the Coventry and Warwick Gigapark. The demand for automation engineers, process specialists and quality professionals across these sites is already significant and growing.

In nuclear, Hinkley Point C in Somerset is at peak construction and moving towards its fit-out phase. Sizewell C, the first majority British-owned new nuclear station in a generation, reached its Final Investment Decision in July 2025 and is building its workforce now. The Wylfa SMR programme, using Rolls-Royce's factory-built reactor design, formally started design activity after a contract was signed in April 2026.

In defence, BAE Systems now has a record 6,800 apprentices and graduates in training and is recruiting nearly 2,300 new starters in 2026. Rolls-Royce Submarines is expanding its Raynesway site in Derby, adding around 1,170 skilled roles. These are active hiring programmes, not future commitments.
 

What this means for engineering professionals

The April employment figure is the first upward signal after 18 months, but demand across these programmes has been building throughout that period. The gap between what the sector needs and what the market can supply is not narrowing.

EngineeringUK estimates the sector requires around 173,000 new engineers and technicians each year through 2030. The Nuclear Industry Association estimates the civil and defence nuclear workforce needs to grow from around 83,000 today to 120,000 by 2030. The IET's 2025 Skills Survey found that 76% of engineering employers report difficulty filling key roles.

The roles drawing the most attention span automation engineering, controls and instrumentation, manufacturing and process engineering, quality and safety assurance, and project management across capital programmes. In nuclear and defence, SQEP (Suitably Qualified and Experienced Person) status and safety case experience carry a significant salary premium.

For professionals currently working in these disciplines, the timing matters. Programmes at the scale of Sizewell C, the Wylfa SMR and the automotive gigafactories take years to reach peak workforce. Engineers who establish themselves in these programmes now build experience and clearances that carry long-term value.
 

What this means for hiring managers

The six-month recovery in PMI output points to sustained demand, but the employment sub-index tells the more specific story. Manufacturing businesses held back on hiring even as output recovered. In April, that changed.

The Make UK survey found that almost three-quarters of manufacturers cite a shortage of technical skills as their biggest barrier to recruitment. With nuclear, defence and automotive all competing for the same engineering disciplines at the same time, lead times for specialist roles are extending. Businesses that plan their workforce requirements early and engage specialist recruiters ahead of need are consistently better positioned than those that hire reactively.
 

Working with Millbank

Millbank has been placing engineering professionals across nuclear, defence, energy, automotive and advanced manufacturing for over 40 years. We understand the programmes, the disciplines and the timelines. Whether you are an engineer considering your next move or an organisation building out a team for a major programme, we can help you navigate a market that is moving quickly.

For candidates: If you are an engineering professional ready to explore what this market has to offer, view our current vacancies or register with us and a member of our team will be in touch.

For clients and hiring managers: If you are planning a workforce around one of these programmes and want to talk through timelines, disciplines and market availability, contact our team here.
 

Frequently asked questions

What does the April 2026 UK Manufacturing PMI result mean? The S&P Global UK Manufacturing PMI rose to 53.7 in April 2026, its highest since May 2022. A reading above 50 signals expansion. The result reflects broad-based growth in output, new orders and employment across consumer, intermediate and investment goods.

Why did manufacturing employment rise for the first time since October 2024? Output and new orders have been recovering since November 2025. Many manufacturers held back on headcount until demand looked more durable. The April result suggests confidence has reached the point where businesses are committing to hiring again.

Which engineering roles are most in demand across UK manufacturing right now? Automation engineers, controls and instrumentation specialists, manufacturing and process engineers, quality and safety professionals, and project managers with capital programme experience are among the highest-demand disciplines. In nuclear and defence, SQEP clearance and regulatory experience attract a further salary premium.

Is the manufacturing recovery likely to last? Six consecutive months of PMI expansion, combined with confirmed capital investment across nuclear new build, defence manufacturing, electric vehicle and battery production, points to structural rather than short-term momentum. The Industrial Strategy and the BICS energy cost reduction scheme both provide multi-year visibility for manufacturers planning investment and hiring decisions.

What is the British Industrial Competitiveness Scheme? The British Industrial Competitiveness Scheme (BICS) reduces electricity costs by up to 25% for energy-intensive manufacturers. The government expanded it in April 2026 to cover more than 10,000 businesses, including those in automotive, aerospace, steel, pharmaceuticals and nuclear fuel processing. Support begins from April 2027, with a backdated payment to cover the period from April 2026.

Which UK manufacturing sectors are growing fastest in 2026? Nuclear new build, defence manufacturing and electric vehicle production are the three areas seeing the sharpest demand growth, both for direct employment and across their supply chains. Battery manufacturing is a fast-growing specialism within the automotive sector, with three major gigafactory sites now in active development.

How can Millbank help me find an engineering role in manufacturing? Our specialist consultants work across nuclear, defence, energy, automotive and advanced manufacturing. We can advise on where your skills fit, which programmes are actively recruiting and what the market is paying. View our current roles or get in touch with the team to start a conversation.