Manufacturing & Supply chain

Commercial

The National Wealth Fund has published its new strategic plan, setting out its ambition to drive more than £100 billion of investment into companies, infrastructure and supply chains. The plan includes 3 strategic ambitions: 1. unlocking growth opportunities on the pathway to clean energy by accelerating investment into the most critical projects, technologies and industries that enable decarbonisation; 2. providing financing and expert advice to significant projects throughout the UK via the Regional Project Accelerator; 3. strengthening sovereign and strategic capabilities by investing in growth opportunities underpinning the UK’s national security, and backing domestic supply chains for growth and resilience including critical minerals, defence, green steel and AI.

UK manufacturing output fell back into contraction in March, as rising geopolitical tensions and surging input costs weighed on production and business confidence.

The Financial Times reported (18 and 21 April 2026) on the impacts of conflict on global food production. In particular, disruption to the Strait of Hormuz is exacerbating the risk of a global food crisis, as increasing energy prices squeeze fertiliser production and logistics.

As part of the UK-EU reset, the UK Government is negotiating with the EU a new Sanitary and Phytosanitary Agreement (SPS Agreement) and an agreement to link the UK and EU Emissions Trading Schemes. The arrangements will involve the UK agreeing to alignment with relevant areas of EU law. The SPS Agreement is intended to make it easier and cheaper for plants, animals and their products (including food and drink) to be imported and exported between the EU and Great Britain. See our recent article for more information. Defra is consulting on the SPS Agreement, which it intends will take effect mid next year.

The Office for Product Safety & Standards published the outcome of its 2025 call for evidence on UK machinery safety regulation. It confirms that the UK government intends to legislate for continued CE recognition for machinery products in Great Britain, and to align the GB regime with the new EU regime insofar as possible. No timeline is given.

The government has announced significant plans to strengthen product safety protections for consumers, via two related consultations, open until 23 June: Product regulation: the UK’s new product safety framework and Enforcement and market surveillance reform.

ESG

We’ve reported periodically on the progress of the alleged forced labour litigation against Dyson in respect of its Malaysian supply chain. Following the High Court’s ruling, earlier this year, that the claim would proceed to trial, Dyson has now reached an out-of-court settlement. Dyson’s settlement doesn’t determine liability, but it, and the publicity the claim received, does underscore the need for businesses to address ESG (environmental, social, governance) issues not only in-house, but also throughout their supply chain. See here for further knowhow support on the subject.

On 6 February 2026, the European Commission (EC) published a call for evidence in connection with the Forced Labour Regulation, which applies from 14 December 2027). It will prohibit economic operators from placing, selling, or exporting products made with forced labour in the EU, impacting businesses interacting with the EU market.

Also in relation to ESG, the Competition and Markets Authority has published guidance on best practice when making green claims across the supply chain. And, whilst we’ve reported previously that the EU Green Claims Directive is on hold, the Empowering Consumers for the Green Transition Directive (now in force and with rules applying from 27 September 2026) will significantly reinforce the EU consumer‑protection framework in relation to environmental marketing in any event. From September 2026, every EU point‑of‑sale journey must prominently display the new legal‑guarantee notice exactly as prescribed. Wider greenwashing prohibitions apply from the same date. Click here for further information and guidance. In the UK, the FCA has published examples of good and poor practice for using sustainability labels under the UK Sustainability Disclosure Requirements regime.

In Europe and of interest to manufacturing businesses, the EC has adopted new measures under the Ecodesign for Sustainable Products Regulation to stop the destruction of unsold clothing, accessories and footwear. The rules aim to cut waste, reduce environmental harm and support circular business models. Businesses will be required to disclose the volume of unsold goods they discard from February 2027. A ban on destruction will apply to large s companies from July 19, 2026, extending to medium‑sized companies in 2030. In the UK, the government’s circular economy strategy, which is expected to address sustainable manufacturing, is still awaited.

On packaging, PackUK, scheme administrator for the UK’s extended producer responsibility for packaging regime, has published its operational plan for 2026 to 2027. and, the UK government has published guidance on mergers and acquisitions in respect of extended producer responsibilities (EPR) for packaging.

The Welsh draft Digital Waste Tracking Regulations have been laid before the Senedd. The draft Regulations are expected to come into force on 1 October 2026, and will introduce the first phase of a digital system to record the movement of controlled waste in Wales.

Also in Wales, the Senedd voted on 25 March 2026 in favour of the Deposit Return Scheme for Drinks Containers (Wales) Regulations 2026, establishing a Deposit Return Scheme (DRS) in Wales from October 2027. The scheme, which differs in scope from schemes elsewhere across the UK and which will include glass bottles, will add a deposit to the price of drinks in eligible containers at the point of purchase, which consumers can reclaim by returning empty containers to designated return points. Businesses involved in the production, distribution and retail of drinks in eligible containers in Wales should begin assessing what operational, logistical and labelling changes will be required ahead of the October 2027 implementation date.

The Department for Environment, Food and Rural Affairs (Defra) has published a new Waste Crime Action Plan, which signals a significantly enhanced, and resourced, waste crime surveillance and enforcement regime. The government has already announced mandatory waste tracking from October 2026, but other measures set out in the plan, such as strengthened rules for waste carriers, brokers and dealers, funding increases and new police-style powers, don’t yet have confirmed start dates.

Defra has published the UK’s first plan to combat PFAS  (per- and poly-fluoroalkyl substances) or “forever chemicals”: the persistent substances used in manufacturing and low-carbon technologies that pose long-term environmental and health risks. The plan sets out a range of measures including: consulting on statutory PFAS limits in England’s drinking water later this year; assessing contamination in estuaries and coastal waters for the first time; increased testing and monitoring including for contaminated land, soils and food packaging; creating new guidance for industrial sites on handling, monitoring and disposing of PFAS; a new public website to raise awareness. See our recent article on PFAS and legal risk.

Technology

As we move through spring 2026, 3D printing is a key horizon issue. 3D printing (or ‘additive manufacturing’ or ‘AD’) is no longer seen as primarily a prototyping tool, but rather as a production-grade manufacturing platform, particularly in regulated and safety‑critical sectors. Market analyses published in March–April 2026 (3D Printing Market Size, Share, Industry Trends Report, 2034; 3D Printing Market | Global Market Analysis Report – 2036) show double‑digit CAGR driven by end‑use qualification, expanded materials, and digital supply-chain strategies. The legal risk profile of 3D printing appears to be shifting from experimental questions, to IP and product liability, regulatory compliance, and cross‑border enforcement.

From 11 September 2026, under the EU Cybersecurity Act, manufacturers of products with digital elements will be required to notify, via a Single Reporting Platform (SRP), actively exploited vulnerabilities and incidents that have a severe impact on the security of that product. The European Union Agency for Cybersecurity has published FAQs on the SRP.

The EC has launched an ICT Supply Chain Security Toolbox to help identify and mitigate cybersecurity risks in supply chains.

The Manufacturer has published a free step-by-step guide to implementing AI in manufacturing. Also from The Manufacturer (in conjunction this time with digital consulting partner, Columbus), is this article on how manufacturers can reduce waste, cut costs and drive resilience.

Logistics

Industry news

BusinessWire has reported that Gatik has become the first company in North America to deploy fully driverless trucks in commercial operations at scale. The company is running $600 million in contracted revenue and daily deliveries for Fortune 50 retailers with no human driver or safety observer behind the wheel.

The Department for Transport and the Office for Zero Emission Vehicles have announced £1 billion to help businesses to roll out clean trucks and vans and install new EV chargers at depots (more on this under ‘Road/rail strategy and freight infrastructure’ below).  The Zero Emission Truck and Van Grants will offer savings of up to £81,000 off the heaviest zero emission trucks, and discounts of up to £5,000 off the cost of electric vans. Businesses and public authorities will also be able to save up to £1 million, covering up to 70% of the cost, when installing charging infrastructure for vans, coaches and eHGVs under the Depot Charging Scheme.

As global supply chains become more fragmented and difficult to manage, Fourth-Party Logistics (4PL) is increasingly being discussed as an emergent model. But what is it? Paul Lockwood, UK & Ireland Group Managing Director at SEKO Logistics explained “4PL is about orchestration. As networks become more complex, businesses are realising that managing providers is now as challenging as moving the goods themselves.” Rather than operating individual assets, a 4PL provider offers coordination as a strategic capability. It oversees and integrates multiple logistics partners, technologies, and workflows into a single, coordinated supply chain ecosystem. With 4PL, businesses retain strategic ownership of their supply chain, but outsource coordination, visibility, and optimisation. Technology plays a central role. If you’re interested in investigating 4PL options and legal/contractual implications, contact our specialist logistics lawyers for information or advice.

Geopolitical instability, including ongoing tensions affecting transit through the Strait of Hormuz, is placing global supply chains under real pressure. Our recent article can help businesses respond effectively.

New research from Savills shows that, with data centres and logistics warehouses typically operating in similar locations and footprints, these asset types have inevitably begun to compete. And, with data centres currently outperforming traditional industrial and logistics assets in terms of total return, land that would typically have been considered part of the future supply pipeline for the logistics sector is being taken out of play.

Decarbonisation

The Health and Safety Executive (HSE) has played a key role in a major research project that has been recognised with a national award for innovation in sustainable transport.

The government has published a policy summary and opened a consultation on three sets of draft regulations for the carbon border adjustment mechanism (CBAM), which is scheduled to commence on 1 January 2027. The draft regulations cover administrative requirements for registration, returns and record‑keeping; the methodology for calculating the CBAM rate and carbon price relief; transitional arrangements from January 2027 to June 2028.

The European Parliament has adopted a European Commission proposal for a Regulation to introduce more flexibility in calculating emission credits for heavy duty vehicles. When the European Council has adopted the Regulation, it will be published in the OJEU and enter into force. Businesses using heavy duty vehicles should review the changes.

The UK Emissions Trading System (UK ETS) Authority is consulting until 15 June 2026 on the future treatment of sustainable aviation fuels (SAF) in the UK ETS.

Road/rail strategy and freight infrastructure

A CMA interim report, published as part of its ongoing market study into the civil engineering sector for public road and railway infrastructure, highlights persistent issues hindering growth and productivity. The CMA has provisionally identified significant opportunities to improve how projects are scoped, planned, procured and regulated.

As of late last year, the government has backed Heathrow airport’s £49bn proposal to build a new runway across the M25 motorway.

The government has published its new Integrated National Transport Strategy (INTS), Better Connected, intended to set out its approach to creating a more joined-up transport network across England. However, the strategy is focused on passenger transport, with limited references to freight and logistics to date.

BEV uptake remains well below the UK’s ZEV mandate target of 33% for 2026, highlighting a widening gap. Infrastructure is the key constraint, with EV adoption led by infrastructure rather than demand. However, the government’s decision to increase EV chargepoint grants by over 40% is a welcome step, bolstered by Ofgem’s Strategic Innovation Fund. See our recent article for more information.

Also on EVs, Volkswagen has announced plans to cut around 50,000 roles after scaling back its EV ambitions, citing intense pricing pressure from cheaper Chinese electric vehicles.

A government-backed deal will see Network Rail and its property development company Platform4 take long-term control over the Barking Eurohub site in east London,  with plans for around £15 million of investment to transform it into an international logistics hub. This will support the return of regular intermodal freight trains, which carry cargo in containers that can be easily transferred across rail, road and sea, through the Channel Tunnel.

Construction and development

As uptake of artificial intelligence accelerates, construction project workflows across logistics and the wider built environment are being augmented or replaced by more dynamic, tech‑driven approaches. AI isn’t just speeding up design and site monitoring; it’s beginning to run aspects of projects itself, predicting output, balancing demand, scheduling maintenance and improving quality control. In this article, we look at how you can capitalise on the efficiencies and competitive advantages AI can offer, whilst managing legal and operational risk.

RICS has published the fourth edition of its global professional standard on environmental, social and governance (ESG) and sustainability in commercial property valuation. The updated standard, which takes effect from 30 April 2026, sets out how ESG factors should be reflected in valuation advice and responds to regulatory, market and professional developments since the previous edition.

The government has published its ‘Time to pay up’ response to its consultation on late payments. The government will legislate, as soon as parliamentary time allows, to introduce a 60-day payment cap and transparency measures, as well as a ban on the deduction/withholding of retention payments in the construction sector. For more information, see our recent article.

HMRC is introducing key changes to the Construction Industry Scheme. Our recent article highlights key issues ahead of the changes.

The High Court has overturned approval for Peel NRE’s Trafford infrastructure and logistics scheme, finding the planning inspector had failed to address whether the developer should make a financial contribution for new roads.

The Provision of Information (Contractual Control) (Registered Land) Regulations 2026 have been published. They introduce a new transparency/disclosure regime for contractual control agreements over land in England and Wales. They require disclosure of certain information about contractual control rights to HM Land Registry and publicly via a new database. The Regulations will come into force on 6 April 2027, but disclosure obligations will also apply to relevant agreements entered into between the date the Regulations are made (expected in the first half of 2026) and commencement.

We’ve reported previously on the Construction Products Reform Green Paper on wide-ranging plans for future regulation of construction products. Proposals include bringing all construction products within the general product safety regime; enhanced regulatory, surveillance and enforcement powers; development of a new single Construction Products Regulator; and civil and criminal penalties for manufacturers that engage in misleading practices or neglect their responsibilities regarding product safety. As of February 2026, the government is consulting, until 20 May 2026, on its proposals.

Walker Morris has been shortlisted for Real Estate Team of the Year at The Lawyer Awards 2026, recognising the outstanding performance of its Real Estate practice over the past year. The winners of The Lawyer Awards 2026 will be announced at the awards ceremony in London in June 2026.

People in logistics

The Employment Rights Act 2025 (ERA) is making sweeping changes to UK employment law. To help you navigate the changes, we’ve created a tracker to keep you updated on the proposals, what they mean for employers and how you can prepare, organised by topic and timeline. Access our tracker here.

The government has published updated guidance for large employers (250 or more employees) on creating gender equality action plans.

The government launched a call for evidence, open until 1 July 2026, on the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).

The government has published its response to its consultation on the right of trade unions to access workplaces. The government is now consulting, until 20 May, on a draft code of practice on how measures the government has decided to take forward as the result of the consultation will operate. It’s intended that the new right for trade unions to access workplaces will come into force by October 2026.

The Department for Business and Trade is consulting until 1 May 2026 on the agency work regulatory framework. The consultation considers how regulation of the temporary labour market should address umbrella company activity and on broader, modernising changes. It addresses various areas, including: payment and provision of information about agency workers; transparency on pay, contracts and employment rights; and current working practices and administration. Further consultation on more detailed proposals to streamline and simplify the regulatory framework may follow.

The Health and Safety Executive is consulting, until 30 June 2026, on The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR). The consultation seeks views on proposals to help reduce work-related ill health. It looks for options to reduce the burden on businesses through simplification of the reporting process.