The latest data from Purbeck Personal Guarantee Insurance, the provider of personal guarantee insurance to SME Directors, highlights the resilience of the UK manufacturing sector, despite economic headwinds.
Faced with high energy costs, increasing employment expenses and ongoing supply chain uncertainty, manufacturers continue to invest in growth.
Purbeck’s data shows almost a 1 in 4 of all applications for personal guarantee insurance (PGI) from UK manufacturers were to support business loans for growth initiatives, the highest Purbeck has ever recorded for the sector.
Indeed, analysis of the reasons manufacturing business sought finance reinforces the tenacity of the sector. Manufacturers are continuing to invest for the future with just under half of all applications funding a business acquisition, asset purchase, development or investment in growth.
Key manufacturing sector findings – Q2 2026
- PGI applications up 85% on Q2 2025
- 37% of personal guarantee backed business loans were for working capital
- Just under half of all applications (48%) in Manufacturing were for a business acquisition, asset purchase, development or investment in growth initiatives
- Average personal guarantee up from £188,413 in Q1 2026 to £193,000 in Q2 2026
Todd Davison, Managing Director of Purbeck Insurance Services said:
“Manufacturing businesses have remained robust despite rising UK oil and gas prices which mean our manufacturing sector faces some of the highest energy prices across Europei). Although the change in Prime Minister has obviously injected fresh political uncertainty, it is reassuring to see so many businesses confident enough to invest in growth, positioning themselves to capitalise on future opportunities.
“Despite these positive signs of growth, however, it is clear that some corners of UK manufacturing are struggling. Working capital remains the biggest reason firms are borrowing, representing 37% of all loans, highlighting the on-going pressure many businesses face in managing day-to-day cash flow.
“Access to personal guarantee backed finance whether for expansion or to manage cashflow will remain critical as manufacturers navigate the road ahead, enabling them to take advantage of growth opportunities as market conditions improve.”
