UK Manufacturing Hit Hard as Oil Prices Surge Above $100

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Oil prices have surged above $100 per barrel due to tensions involving Iran, significantly increasing costs for UK manufacturing, especially for SMEs. Rising energy costs are driving inflation and squeezing margins, while many manufacturers are losing potential business due to underperforming websites. As procurement increasingly relies on online research, improving digital presence is crucial for capturing demand and staying competitive.

Press Release

London - May 7, 2026

Oil prices have surged above $100 per barrel following escalating tensions involving Iran, driving up fuel, transport and production costs across the UK. Manufacturing SMEs are under increasing pressure but many are still losing revenue through under performing websites, according to ALT Agency.

The latest data shows UK manufacturing costs rising at their fastest rate since 1992. At the same time, the forecast indicates economic growth will slow to 0.7% in 2026. Rising energy costs are feeding directly into inflation and squeezing margins across the sector.

For manufacturers, the impact is immediate. Higher fuel costs increase logistics spend. Most manufacturing businesses are reacting to visible cost pressures. Fewer are looking at how demand is being lost.

Buyer behaviour has shifted. Procurement teams research suppliers online before making contact. Websites now play a central role in shortlisting.

Craig Murphy, Director at ALT Agency, said:

The fuel crisis is putting pressure on the industry. But many manufacturers are still ignoring how much demand they lose online. That’s something they can actually fix.

If a site is slow, outdated or difficult to use, potential buyers move on.

Common issues include:

  • Poor visibility in search
  • Slow load speeds
  • Weak mobile performance
  • Inefficient enquiry journeys

These are not technical problems. They are commercial ones.

SMEs Under Pressure

Smaller manufacturers are more exposed. They have less margin for error and rely more on inbound enquiries.

At the same time, competition is increasing. Global suppliers are easier to find, meaning more choice and if demand is not captured effectively, it goes elsewhere. Digital performance is often overlooked. That creates a gap. One that becomes more expensive in a cost crisis.

The Wider Impact

The Iran-linked fuel disruption is affecting global supply chains. Costs are rising across multiple sectors, as economic uncertainty is increasing. You cannot control oil prices. You cannot control geopolitical events. You can control how your business performs online.

Notes to editors

About ALT Agency

ALT Agency is a UK digital marketing and web development agency specialising in SEO, website design, website maintenance and lead generation for businesses across the manufacturing, engineering and construction sectors.

Led by Craig Murphy, the agency focuses on helping businesses improve online visibility, website performance and conversion rates through custom digital strategies designed to support long-term growth.

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