Of the Scottish manufacturing senior decision makers polled for FRP’s new report The Manufacturing Agenda, nearly a third said they expect their boards to be leading buy-side (31%) or sell-side M&A (31%) over the next 12 months.

Boards will also be prioritising enhancements to their firms’ digital and automation capabilities (30%), focussing on skills and talent (28%), succession planning (27%) and preparing to navigate new geopolitical risk (27%). This follows a year where they have been focused on managing ongoing structural challenges, such as the sudden loss of key orders or customers (24%), geopolitical or trade change (20%) and ESG regulation (20%).

Reflecting their operational priorities, Scottish manufacturers are planning fresh investments for the year ahead, prioritising those that will boost supply chain resilience (43%), support sell-side M&A (41%) and deliver robust succession planning (41%).

Lenders and investors share many of the same 2026 focus areas as boards. When asked what would prompt them to intervene in a portfolio company over the next 12 months, lenders and investors cited, cost, cashflow and working capital (44%), investment, automation and digital execution (41%) and leadership resilience (37%).

Callum Carmichael, restructuring advisory partner at FRP in Edinburgh, said: “These findings reflect management teams that clearly understand where risks sit, and are proactively planning to meet capability gaps and build long-term value and resilience.

“It also shows that resilience is no longer purely defined by financial strength – it’s about the capability to make strategic investments like M&A, align with regulation and adapt at pace.

“As Scottish manufacturers look to take these steps next year, it’s critical that they have the right support – something that they’re already recognising through investments in processes like M&A and succession planning.

“As well as helping guide operational decisions, expert advisory support can also help align perspectives between boards and lenders. There’s already overlap in focuses, but there’s an important gap when it comes to the fundamentals of cost, cashflow and working capital. Bridging this will be important if firms want to secure new, or enhanced, backing.”