Private equity investors need to look more closely at the opportunities among Liverpool manufacturing businesses as a growing number of owner-managed companies consider their long-term future and succession, according to a leading business adviser based in the city.
Andrew Matthews is Corporate Partner and Head of the Liverpool office at national accounting and advisory firm MHA and specialises in advising manufacturing and engineering businesses, as well as distribution companies and organisations in the life science and technology industries.
He was speaking following the release of the latest S&P Global UK Manufacturing PMI results for September, which rose to 51.9 from 51.7 in August. The index was also 51.9 in July, with a reading above 50 indicating growth in the sector.
Reflecting on the previous quarter Andrew suggested that despite the difficulties manufacturers were facing, including rising employment and fuel costs, the North West, including Liverpool, remained resilient compared to other areas of the UK.
Andrew said strong availability of manufacturing skills across the region and good transport connectivity were supporting this resilience.
His comments follow the release of MHA’s Manufacturing Report 2026 in June. The report indicated North West manufacturers were more optimistic than any other UK region about the 12 months ahead, with 90 per cent expecting growth above three per cent, up from 76 per cent in 2025.
Andrew commented:
“We have some really good manufacturing businesses here and I think the North West has the right skillset, good connectivity and a strong industrial heritage.
In Liverpool, there are a lot of owner-managed manufacturing businesses who are considering the future, including those looking at whether now is the right time to exit while the going is still relatively good.
Others are looking at investment, whether that is private equity, finance or listing. If you don’t look far enough ahead as a manufacturer, you will be left behind. We’ve seen real growth in investment into Greater Manchester businesses over recent years and now private equity needs to wake up and see the opportunity in Liverpool.”
Despite the resilience Liverpool and North West manufacturers have shown over the past quarter, Andrew highlighted that external factors were continuing to put pressure on the industry.
He continued:
“We are starting to see the first signs of the Jaguar Land Rover job reductions having an impact further down the supply chain,” he said. “I don’t think that has fully worked through yet, but as businesses look towards the next financial year, more of them are starting to think about their cost base.
With regard to pharmaceuticals, it’s a mixed picture. From what we are seeing, luxury goods are doing well and FMCG businesses are also performing strongly, but it is the middle of the market that is finding things more difficult.”
Andrew also highlighted that uncertainty, including over future government policy, is affecting planning discussions among MHA’s clients in the Liverpool City Region.
“The biggest issue businesses continue to raise with us is uncertainty. We have had a lot of discussion around government budgets, National Insurance and minimum wage increases. Businesses want more certainty about employment costs and taxation because uncertainty can slow investment decisions.
We are also seeing employers think harder about recruitment and whether they take on somebody experienced or invest in somebody more junior. That is having an impact on opportunities for younger people coming into the workforce.”
