Britain’s Energy Crisis Is Driving Manufacturing Offshore
Key takeaways
- The joint manufacturing outlook survey confirms that the UK s ~130,000 manufacturing firms are in crisis mode.
- British manufacturers pay an average of around 27 pence ($0.36) per kilowatt-hour of electricity, much higher than 16p ($0.21)/kWh in other developed nations, according to the study.
- According to the study, 25% of UK manufacturers have already relocated parts of their production overseas or are actively considering moving to other countries in Europe and Asia where energy is cheaper.
The UK risks a major wave of deindustrialization and widespread factory closures unless the government expands emergency relief measures for manufacturers battling soaring energy costs, a prominent manufacturing trade body has warned, as reported by the Guardian.
According to a June 2026 survey by Make UK and the Trades Union Congress (TUC), Britain faces an imminent risk of industrial collapse unless the government provides immediate financial relief to protect manufacturers from surging energy and power bills driven by systemic carbon levies and high fuel costs triggered by the Middle East conflict.
The joint manufacturing outlook survey confirms that the UK s ~130,000 manufacturing firms are in crisis mode. Indeed, recent UK government data revealed that industrial electricity prices in the UK can be more than 90% higher than the median of International Energy Agency (IEA) member countries, rendering Britain s energy-intensive industries far less competitive.