A joint study by Civitas and Make UK finds that UK manufacturing SMEs could boost the economy by up to £83 billion in GDP if they overcome scaling challenges. Although over 60% of these firms aim to grow, many rely on outdated tools and lack strategic visibility to turn ambition into reality.
The Scaling Barrier
UK manufacturers have demonstrated resilience through Brexit, supply-chain shocks, labour shortages, and soaring energy costs. Yet, founder Michael Gould of Kaleidoscope.com, a planning platform for SMEs, says traditional methods—“fragile spreadsheets, siloed thinking, or blind optimism”—leave growth plans stalled.
“SME manufacturers are some of the most resilient, inventive and hardworking businesses in the UK. They’ve weathered Brexit, supply chain shocks, labour shortages, and an energy crisis. And yet, many still plan their futures using fragile spreadsheets, siloed thinking, or blind optimism,” said Gould. “That simply isn’t good enough when we’re talking about unlocking tens of billions in economic value.”
From Data to Decisions
The report suggests that turning small enterprises into mid-sized or large firms could catapult the UK from the 12th to the 7th largest manufacturing economy worldwide. However, scaling requires more than funding—it demands robust forecasting and scenario planning:
“Most business owners don’t lack ambition, they lack clarity. They might have a dozen gut instincts about how to grow, but no safe, structured way to test those assumptions,” Gould explained. “That’s why so many growth plans stay stuck in limbo, especially in sectors like manufacturing, where the stakes are high and the margins tight.”
Kaleidoscope’s Collaborative Platform
Kaleidoscope replaces static spreadsheets with a live, collaborative environment. Founders and teams can:
- Run multiple what-if scenarios (e.g., material cost increases)
- Model costs against economic conditions
- Stress-test decisions instantly, avoiding formula errors and siloed data
Beyond Technology: A Holistic Approach
Gould emphasizes that digital tools must be paired with broader support:
“The UK has spent the last decade trying to become a start-up nation. But it’s scale-ups that drive real economic transformation,” he said. “And in manufacturing, scaling is capital-intensive, talent-driven, and strategically complex. That means we need more than slogans, we need proper support systems.”
His recommendations include:
- Accessible funding for growth-stage SMEs
- Mentorship from experienced operators
- Government incentives for digital adoption
- Peer-learning case studies to share best practices
A Critical Moment for Manufacturing
With government policy reviews on competitiveness, energy efficiency, and reshoring underway, the next 12 months could shape Britain’s industrial future:
“The next 12 months could define the next decade for British manufacturing. If we help these hidden champions scale now, we could lock in a stronger, more resilient economy. But if we miss the moment, we’ll continue to lose talent, contracts and ideas to overseas markets,” Gould warned.
Kaleidoscope is currently in an early adopter phase with SME manufacturers testing the platform’s forecasting and planning capabilities.
“Confidence is the biggest growth lever no one talks about. When you know the numbers, when you can test your thinking safely, when you can see the road ahead clearly, that’s when you’re able to scale with conviction. And that’s what we’re trying to give back to these businesses,” Gould added.
