Shared Insight: Advanced Manufacturing - UK Industrial Growth
posted 21st January 2026
The UK Government's Modern Industrial Strategy; 'Invest 2035: the UK's modern industrial strategy', identifies eight strategically crucial sectors for targeted investment and grant allocation over the coming decade.
These IS-8 sectors comprise:
Advanced Manufacturing
Clean Energy
Creative Industries
Defence
Digital and Technologies
Financial Services
Life Sciences
Professional and Business Services
This analysis examines Advanced Manufacturing: defining the sector, explaining its strategic importance, and profiling leading UK businesses driving innovation.
Defining Advanced Manufacturing
Advanced Manufacturing represents the application of cutting-edge science and technology throughout production processes. The Government's industrial strategy recognises this as a fundamental growth sector.
Rather than conventional manufacturing, Advanced Manufacturing integrates breakthrough technologies directly into production workflows. These may include artificial intelligence systems, robotics, additive manufacturing (3D printing), virtual/augmented reality, novel materials like graphene, and IoT-connected devices.
The defining characteristic: technology must be embedded within the manufacturing process itself, not merely supporting administrative or logistical functions.
The suggested broader proxy includes:
20 - Chemical and chemical product manufacture
26 - Computer, electronic and optical product manufacture
27 - Electrical equipment manufacture
28 - Machinery and equipment manufacture (not elsewhere classified)
29 - Motor vehicle, trailer and semi-trailer manufacture
30 - Other transport equipment manufacture
Leading UK Advanced Manufacturing Businesses
Drawing on Beauhurst platform data, we've identified top-performing companies by two metrics: revenue and equity investment.
Top Three by Revenue
3. Airbus UK
Founded: 1997 | Headquarters: Westminster | Revenue: £4.62bn
Operating from London, Bristol (Filton), and North Wales (Broughton), Airbus UK designs and produces wings and related systems for Airbus commercial aircraft. The subsidiary employs approximately 8,000 people, forming a cornerstone of Britain's aerospace cluster.
Production incorporates robotics, composite materials, and digitally-integrated manufacturing lines. Innovate UK grants and substantial R&D expenditure support the Broughton facility's position as a flagship aerospace manufacturing site.
2. Johnson Matthey
Founded: 1891 | Headquarters: City of London | Revenue: £11.7bn
This London-based global chemicals and sustainable technologies company manufactures catalysts, battery materials, fuel cells, and processes precious metals, applying specialised engineering and research to deliver cleaner technologies.
From hydrogen fuel cells to electric vehicle battery components, Johnson Matthey exemplifies Advanced Manufacturing's contribution to UK decarbonisation and innovation objectives.
1. Rolls-Royce
Founded: 1906 | Headquarters: Islington | Revenue: £18.9bn
A global power and propulsion systems leader, Rolls-Royce designs, develops, and manufactures advanced aerospace engines alongside marine and nuclear technologies.
The company integrates advanced materials science and AI-powered predictive maintenance into jet engine production, whilst pursuing major R&D programmes in hybrid-electric and hydrogen propulsion systems, establishing leadership in UK Advanced Manufacturing.
Top Three by Equity Investment
3. Plessey Semiconductors
Founded: 2000 | Headquarters: South Hams | Capital Raised: £73.0m
Specialising in advanced optoelectronic semiconductors, Plessey has secured £73.0m across three equity rounds, complemented by 19 Innovate UK grants totalling £14.9m. Haylo Labs acquired the company in August 2025.
Work in microLED technology, augmented reality displays, and chip design demonstrates UK capability in high-value semiconductor manufacturing, critical for consumer and industrial applications.
2. Alloyed
Founded: 2015 | Headquarters: Cherwell | Capital Raised: £82.2m
This University of Oxford spinout manufactures advanced alloys and metal components whilst developing modelling and simulation software for manufacturing optimisation, having raised £82.2m in equity.
Alloyed exemplifies the advanced materials dimension through combining additive manufacturing, proprietary alloy development, and digital process enhancement.
1. McLaren Automotive
Founded: 1985 | Headquarters: Woking | Capital Raised: £410m
McLaren designs and manufactures high-performance sports and luxury vehicles, recognised globally for lightweight composite materials, engineering excellence, and electrification focus.
The company has secured £410m in equity to support expansion, technology development, and new model programmes.
GS Verde Group: Strategic Advisory for Manufacturing Excellence
Advanced Manufacturing sits at the heart of Britain's industrial strategy, accelerating progress across sectors from aerospace to medical devices. As Beauhurst data illustrates, sector growth stems from technological innovation, university commercialisation, and international collaboration.
Manufacturing businesses frequently require specialist guidance when securing R&D funding, scaling operations, protecting intellectual property, or executing cross-border transactions.
GS Verde Group partners with UK manufacturing and engineering businesses across their growth journeys. Our integrated team delivers corporate finance, legal, tax, accountancy, and communications expertise, providing comprehensive transaction support under one roof.
Whether you're an early-stage spinout, scaling operation, or established manufacturer pursuing strategic growth, GS Verde Group delivers the expertise to navigate complexity and secure competitive advantage.
Explore UK Advanced Manufacturing insights at: https://www.beauhurst.com/blog/guide-to-advanced-manufacturing-industrial-strategy/