85% of Scottish Manufacturers Expect Growth in 2026, Even as Costs and Global Uncertainty Bite

A new MHA survey finds Scottish manufacturers more bullish than they were a year ago, with the majority planning to invest despite rising operational pressures. That confidence deserves a closer look, because the conditions driving it matter for every Scottish business owner, not just those on the factory floor.

Eight in ten Scottish senior manufacturing executives expect growth in the year ahead, according to the MHA Manufacturing & Engineering Report 2026. That is not a number you typically see when inflation is sticky, energy costs are elevated, and global trade routes remain as predictable as a Scottish summer. Yet there it is: 85% of those surveyed are pointing the dial at expansion, not survival.

MHA, the accountancy and business advisory group, surveyed senior leaders across Scottish manufacturing and engineering for the report. What it found was a sector that is not waiting for conditions to improve before committing capital. Investment plans are being maintained, not shelved. That is a meaningful signal. Manufacturers are long-cycle thinkers by necessity, they do not spend on plant, equipment, or headcount unless they genuinely believe the order book will support it.

The confidence sits against a backdrop that is, frankly, difficult. Operational costs remain high across the board, a direct consequence of energy price volatility and the residual pressure of supply chain disruption that still has not fully unwound since 2021. According to Scottish Enterprise's most recent sector intelligence, Scottish manufacturing accounts for around 15% of the country's total economic output, making it a bellwether for the wider economy. When manufacturers start spending, the downstream effect touches logistics, professional services, technology procurement, and everything in between.

There is also a skills story lurking inside this data. The MHA report points to ongoing workforce challenges, a theme consistent with findings from the Fraser of Allander Institute, which has repeatedly flagged skills shortages as a structural constraint on Scottish manufacturing output. The good news is that the same digital tools now available to a ten-person Edinburgh marketing agency, AI-assisted scheduling, automated quality control, demand forecasting software, are increasingly within reach for smaller manufacturers too. The sector's confidence may partly reflect that realisation: that technology can do more of the heavy lifting without a proportional increase in headcount.

For Scottish SME owners outside manufacturing proper, the headline figure is worth filing away. When a capital-intensive, margin-sensitive sector is this confident about the year ahead, it tends to be right more often than wrong. These are people who have to be. Their optimism is not vibes; it is order books, contract pipelines, and signed purchase orders. Scotland's wider business community should take note, and perhaps borrow a little of that resolve.

What this means for you: If your business touches manufacturing in any way, supplying components, professional services, logistics, or technology, this is a good moment to be in front of those clients. Scottish manufacturers are planning to invest, which means budgets exist. Check what MHA's full report covers at mha.co.uk and cross-reference it with Scottish Enterprise's sector support offers; there may be grant or co-investment routes that align with where your manufacturing customers are heading next.