As manufacturers look to the year ahead, Andy Coussins, EVP International, Epicor, says it’s clear that excellence is more and more defined by resilience and innovation, with automation delivering a competitive advantage

Manufacturing rarely stands still. The past few years have brought almost continuous disruption, but that same pressure has also accelerated progress. As manufacturers look to the year ahead, it’s clear that excellence is more and more defined by resilience and innovation.

The sector remains a vital part of the UK economy, valued at £212 billion and ranking 11th globally. Output across every UK region is now above pre-pandemic levels, and around 12,000 new manufacturing jobs have been created in the past year. The recent S&P Global UK Manufacturing PMI rose above 50 in November, the highest it has been for 14 months.

Despite this momentum, confidence is fragile as manufacturers continue to navigate a whole host of challenges, from rising input costs and supply chain shifts to ongoing skills shortages.

The challenge now is turning short-term stability into long-term transformation. Our annual customer interactions have given light to how dynamic and innovative our customers continue to be, and five trends are emerging when it comes to reshaping operations.

  1. Harmonising global operations through connected systems

For many manufacturers, the barrier to progress is fragmentation. Organisations with multiple sites, regional variations, or acquired business units often struggle to maintain visibility and consistency across operations.

We are seeing manufacturers shift toward cloud-first, standardised operating models that unify processes and create a single source of truth. For example, one of our customers is a global group that has set out a cloud-first roadmap aimed at bringing more than 20 operating entities onto one platform. As a result, they have reduced reliance on ageing systems and eliminated regional workarounds.

Similarly, a global valves and materials-handling manufacturer operating across four continents has reduced support overheads and IT ticket volumes by consolidating disparate regional systems into a single operational model.

Success in modern manufacturing hinges on breaking down silos and enabling cross-border consistency. Cloud ERP has become the foundation for doing both, and for building the more resilient and connected operations that we need.

  1. Turning data into action on the shop floor

Treating the shop floor as a rich data source and space for performance optimisation is setting our customers apart. Collecting data directly from equipment and operators on the shop floor in real-time maximises data accuracy and process automation.

In turn, manual processing time and error rates are reduced, improving efficiency, uptime and better supplier fulfilment outcomes. With information instantly in shop floor hands, employees are empowered to make informed decisions, decreasing response times and anticipating and solving production problems before they happen.

This shift is tangible. Some businesses have cut quoting times from days to hours by connecting design and production data, while others are using analytics to spot quality issues before they escalate.

For example, in the plastics manufacturing space, one customer has excelled in their focus upon enabling efficiency, quality and eco-friendly principles while providing real-time analysis for optimal production performance.

The team can monitor Overall Equipment Effectiveness (OEE), run rates, scrap, yield, and energy consumption which has revolutionised their shop floor operations.

While another electronics manufacturer serving sectors such aerospace and defence, boosted day-to-day efficiency across operations and processes by moving its ERP to the cloud as part of a wider transformation project. Service is now enhanced for its high-profile customers, resource utilisation is maximised, and supply chain planning has greatly improved. Quotes that used to require a week of calculations to build now take a couple of hours.

  1. Using automation to innovate and differentiate

The best manufacturers are rethinking what automation means. They are going beyond automating tasks and are connecting systems to unlock innovation, enhance customer responsiveness and deliver a competitive advantage.

One such customer prides themselves on excelling in complex, small-batch production, delivering high-quality finished components within challenging lead times. With a 24/7 production environment it uses automation in multiple ways to deliver cutting-edge, high specification manufacturing.

A notable innovation is the use of QR codes for ease of transmitting information to customers, which used to be a manual process. For production, they have spearheaded a new recycling process to further reduce waste and introduced lighter materials to reduce fuel consumption in the aerospace industry.

For others, integrating cloud-based ERP systems with customer service solutions such as Zendesk can revolutionise customer relationships with new customer support processes, the elimination of duplicate data entry, streamlined operations, and pipeline visibility for sales teams.

  1. Making change a cultural advantage

Operational excellence stems not just from tech investments, but from change management and maximising internal adoption. It takes communication, early and ongoing training, and collaboration to make transformation stick and become part of an ongoing culture.

One approach that can be successful is a two phased roll-out, with part one focused on workforce buy-in and embracing change management, such as during a cloud deployment, then part two on enterprise-wide implementation. This proactive approach to embracing change can greatly improve adoption, accuracy and maximise resources and planning from the get-go.

Other organisations have benefited most from bringing together previously siloed brands under an umbrella brand and embarking on a journey to achieve a comprehensive 360-degree view of operations. This greatly improves visibility and control, minimises duplicate efforts, and drives lasting results for Epicor customers.

According to the BDO Manufacturing Outlook Q3 2025, many attributed their progress to greater workforce engagement and better communication around technological change. What separates a successful business isn’t just what they implement, but how they implement. That takes engaged employees, phased adoption, and strategic intent.

  1. Manufacturing with purpose: aligning sustainability and performance

The days of viewing sustainability through the lens of regulatory compliance are over. Sustainability should be integrated into the heart of a business strategy. Adopting sustainable operations and technologies helps manufacturers stay compliant, boost the bottom line, and stand out in a crowded marketplace.

For some, that means investing in cleaner energy and new machinery. For others, it means digitising documentation and monitoring waste in real-time. Whatever the approach, the logic is the same: sustainability improves efficiency and business growth.

In an era where sustainability is a key focus for businesses, one global packaging provider stands out by embodying this mission throughout their operations and in everything they do. The company has a clear ambition to be the global leader in sustainable packaging solutions, and they have strategically invested in technology to support this commitment.

This company is now able to solve complex supply chain planning challenges, forecast capacity with accuracy, timeline sales orders and reduce waste in their operations e.g. by remanufacturing rejects. All this has led to an ambitious, consistent, sustained approach to global expansion with sustainability at the heart of everything.

Environmental performance and purpose-driven innovation aren’t optional anymore, when done in the right way, they offer a real strategic advantage.

Preparing for a new competitive cycle

The manufacturers defining excellence in 2025 share common traits. They are unifying operations globally, embedding digital insight into everyday decisions, and viewing automation as a way to connect people, not replace them. They are also creating workforces that thrive on change and aligning sustainability with performance.

Looking ahead, the sector’s progress will depend on its ability to sustain this momentum and thrive in a rapid changing environment.

Progress in manufacturing has always been driven by those who combine technical skill with practical leadership. As the sector heads toward 2026, that balance between innovation and execution, and between people and technology will continue to define what excellence really means.