The latest Tech Trends survey reveals a cautiously optimistic outlook in the UK engineering sector, with growing interest in AI and a focus on automation, despite ongoing challenges in attracting the right skills. Conducted in late 2025 with responses from 152 engineers across various sectors, the survey highlights manufacturing as the leading sector, followed by electronics, defence, aerospace, and automotive.
Despite economic uncertainties, 61% of engineers express confidence in their business prospects for 2026, although this is a slight decrease from the previous year. Positive sentiments are driven by strong order books and increased demand in medical technology and renewable energy, while concerns focus on fiscal policies and skills shortages.
Automation is identified as the top industry trend, with digitalisation and energy efficiency following closely. AI is seen as the most impactful technology, though the industry remains divided on its adoption, with 53% currently using AI and 47% not yet doing so.
Investment in R&D and new product development is expected to remain steady, with cautious optimism prevailing amid economic uncertainty. The defence and security sector is projected to perform strongly, driven by geopolitical factors and increased spending.
Overall, the survey provides valuable insights into the trends and challenges facing UK engineering in 2026, highlighting the sector’s resilience and adaptability in a rapidly changing landscape.
