Manufacturing News – Early November 2025
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Rolls-Royce Holdings has reported continued strong performance across its businesses in a trading update to 31 October 2025, saying results remain in line with expectations and reinforcing confidence in its full-year guidance.
Chief executive Tufan Erginbilgic said the group’s ongoing transformation programme was “delivering profitable growth and further strengthening our balance sheet”, despite ongoing supply chain challenges. Rolls-Royce continues to target underlying operating profit of between £3.1bn and £3.2bn and free cash flow of between £3.0bn and £3.1bn for 2025.
Britain’s manufacturers are urging to government to use the forthcoming Budget to focus solely on measures to boost growth, warning that any further increases in business taxes, as well as a continued failure to reduce industrial energy costs, risks setting the UK on a path to significant deindustrialisation.
The call comes on the back of data published by Make UK showing that manufacturers’ business costs have already risen significantly this year in response to the increase in National Insurance Contributions (NICs), while companies fear further cumulative burdens and costs from the changes to Inheritance Tax and the looming implementation of the Employment Rights Bill.
UK manufacturing output expanded for the first time in a year in October, survey results from S&P Global showed on Monday, despite ongoing weakness in both domestic and overseas markets.
The manufacturing purchasing managers’ index rose to 49.7 points in October from 46.2 in September, remaining slightly below the 50-point neutral mark. It marginally outperformed the flash reading of 49.6 points.
Three of the PMI constituents – new orders, employment and stocks of purchases – registered contractions, while the sub-indices for output and suppliers’ delivery times showed improved operating conditions.
Plans to shut two bearing factories are a “betrayal” to the almost 400 workers who could lose their jobs, a union has said.
Japan-based NSK Ltd has told staff it is looking to end production at its two factories in Peterlee, County Durham, as part of a restructure of its European business.
NSK said it would consult with unions on the proposed closures, which were part of a wider scheme to “withdraw from unprofitable businesses”.
Specialist South West manufacturer Spirax Group today said it expects its growth to continue in international markets despite ongoing uncertainty around the impact of US tariffs on global trade.
The Cheltenham-headquartered group, which provides steam management systems and employs 10,000 people across 30 manufacturing sites worldwide, said the tariffs were still “dampening business confidence and demand for large projects”.
Added to this, continued weakness in key markets such as the US, Germany, France, Italy and the UK, meant third-quarter industrial production was lower than the half.
Aerospace engineering group Melrose Industries has reaffirmed its full-year guidance after posting strong trading for the four months to 31 October, driven by robust demand across both its civil and defence markets.
In its latest trading update, the Solihull-headquartered business said group revenue grew 14%, with its Engines division up 28% and the Structures division up 5%. The group said adjusted operating profit was ‘significantly higher’ than the same period last year and in line with expectations.
