Business Costs

Manufacturers in Northern Ireland face a growing cost burden that threatens the sustainability and competitiveness of the sector. These pressures include escalating energy and logistics costs (among the highest in Europe), alongside additional employer National Insurance contributions applied in April 2025. The sector must also meet obligations under the Climate Change Act, demanding major investments in decarbonisation, productivity, automation and workforce development. 

Without targeted measures to help our firms compete internationally, Northern Ireland risks losing its competitive edge, undermining the sustainability of its manufacturing base 

In Northern Ireland, 96% of manufacturers are SMEs, almost exclusively homegrown, with their share of turnover rising from 19% in 2015 to 23% in 2023. These firms play a critical role in sustaining wages for working families across both urban and rural areas. Meanwhile, just 1% of manufacturers employ more than 250 people but account for nearly half of all employment and turnover and are highly exposed to global cost fluctuations. 

Our businesses need decisive action and investment now to address mounting cost pressures. Alongside robust lobbying efforts, Manufacturing NI will continue to deliver strategic insight, foster industry-wide collaboration, and provide practical, member-focused support. Our goal is to help manufacturers navigate uncertainty, build resilience, and secure Northern Ireland’s future as a world-class region to make, innovate, and grow.