Unplanned downtime has become a routine operational reality for small and mid-sized UK manufacturers, with 84% reporting it at least once a month and nearly a fifth (18%) experiencing it at least weekly, according to new Aviva research.
Supply-chain disruption is the most commonly cited cause, named by 22% of respondents. Cyber incidents follow at 17%, with equipment failure and staff shortages each named by 14%. Nearly four in five manufacturers (78%) said current risks are causing moderate to significant disruption to their operations.
The frequency varies by manufacturer type. Light manufacturers are most exposed, with 89% reporting unplanned downtime at least monthly. For firms dependent on specialist machinery, key suppliers or a small pool of skilled workers, a single point of failure can halt production entirely.
Supply chains remain the largest single source of disruption, though manufacturers are taking steps to manage the exposure. More than a third (37%) regularly review supplier performance and the same proportion monitor market and geopolitical developments. Some 35% use supply-chain management software.
The findings point to a set of conversations brokers are well placed to have. Nearly eight in ten manufacturers (79%) said they are somewhat or very concerned about the cost of replacing key machinery, plant or equipment following a breakdown, fire or other major event. More than a quarter (28%) said they would value help identifying underinsurance and gaps in cover, while 27% want support with business continuity and resilience planning.
For manufacturing clients with specialist or long-lead-time equipment, the gap between current sums insured and actual replacement cost is the critical question - as is whether business interruption cover provides an indemnity period long enough to reflect realistic recovery timelines.
Chris Andrews, director of global risk management solutions at Aviva, said: “Manufacturers want to be able to focus on growing their businesses, investing and serving their customers. When something unexpected stops production, attention can quickly shift to getting the business back up and running.
“That’s why resilience matters. A supplier can fail to deliver, a cyber incident can take systems offline or a key machine can stop working. Businesses need to understand what could bring production to a halt and have a clear, tested plan for how they would respond.”
Aviva’s research was conducted among small and mid-sized UK manufacturers.
