The subcontract manufacturing market in the UK enjoyed a robust year in 2025, with activity rising by 47% compared to 2024, as revealed by the latest figures from the Contract Manufacturing Index (CMI).
The automotive industry led the way, making up almost a third of market demand, and played a pivotal role in sustaining growth—this, despite the disruptive impact of the cyber-attack on Jaguar Land Rover (JLR).
Compiled by sourcing experts Qimtek, the CMI highlights the total value of outsourced manufacturing budgets from organisations seeking subcontracting solutions each month. The index uses a baseline of 100, reflecting the average market size between 2014 and 2018. For 2025, the CMI averaged 87, significantly higher than the 2024 average of 59.
In the last quarter of 2025, the CMI recorded a figure of 69. While this was below the yearly average, it still marked a 64% increase over the fourth quarter of the previous year. The market began 2025 energetically, with first quarter figures showing a 50% jump from the end of 2024. However, momentum slowed initially as businesses considered the ramifications of upcoming rises in National Insurance contributions and the Minimum Wage.
Despite these challenges, the sector rebounded in the second quarter, propelled by the return of major clients launching new initiatives. The upturn persisted into July and August, though September saw a pronounced decline as the JLR cyber-attack rippled through supply chains, causing uncertainty around future orders. October brought renewed optimism, but activity tapered off again towards the year’s close, echoing a familiar seasonal trend.
The automotive sector dominated for the first eight months, representing 31% of total market share for the year. In the final quarter, the Industrial Machinery sector took the lead, contributing 22% across the year.
Qimtek’s owner, Karl Wigart, commented: “It was quite clear that it was a better year overall than 2024. Activity by buyers has been steady and we broke the record for the number of parts being quoted – just under 20 million parts for the year.
“However, we feel that suppliers are being cautious. They were badly affected by the uncertainty of the very late budget and the shutdown of JLR. They are fussy on which jobs they are quoting for and careful with how they are spending their money.”