Interim leadership: A lifeline for the UK industrials sector

Significant forces are at play in the UK industrial sector, opening up opportunities for companies to harness interim talent to drive transformation and growth. These forces are headlined by the government’s Industrial Strategy, a long-term plan targeting eight sectors – among them advanced manufacturing, clean energy, life sciences and digital tech – which includes measures aimed at boosting industrial production.

Alongside this, we’re seeing the trend for manufacturing contraction easing: in July, PMI had improved for the fourth straight month, with the slowest decline since January. Market confidence is gradually returning, and executive optimism is at a five-month high. There is a marked shift towards greater localization, driven by geopolitical risks, cost pressures and the need for supply chain resilience, with UK businesses planning to invest $650bn over three years to bring operations closer to home.

Digital transformation – encompassing AI, robotics and IoT – also promises productivity gains, cost reduction and further innovation, with a competitive edge the reward for those embracing Industry 4.0.

All of that being said, persistent inflation, constrained near-term business investment and rising labor costs are still creating drag in the industrial sector, with British Chambers of Commerce forecasts projecting only a modest recovery in manufacturing production in 2026.

Non-tariff barriers and compliance burdens remain acute pain points for SMEs in particular, and a severe labor shortage remains a paramount obstacle, with many industrial businesses citing skills gaps as a barrier to growth – compounded by recruitment and retention challenges. The 2025 High-End Independent Talent Report: Industrials from Business Talent Group, a Heidrick & Struggles company, found the most in-demand skills to be financial controls and planning, project management, and growth strategy, with companies in fierce competition for the best talent across these areas.

Interim leadership: supplying skills and strategic advantage

Interim experts and leaders offer a route to countering these leadership and skills gaps. That’s why we’re witnessing large and mid-market organizations across US and European markets leveraging interim leadership to catalyze high-impact transformations during critical inflection points.

Our research shows that industrials’ requests for interim executives rose 59% in 2025, making up 39% of total demand, with independent talent being brought in for turnaround projects; to bridge roles while permanent searches run; or to steady the ship during restructuring efforts. Large transformation agendas all benefit from time-boxed executives who bring expertise, networks and the ability to work at scale. Our reporting shows the most common use cases to be:

• Program/transformation directors for plant consolidation, ERP/PLM rollouts, supply-chain redesign, and ESG or energy transition work – with the demand for ERP experts for industrials increasing by 200% in 2025 as an example.
• Acting CEO/MD to stabilize operations, preserve customer confidence and maintain momentum during permanent leadership searches.
• Interim CFO to anchor the finance function during transition moments, maintaining progress while bringing clarity to key decisions – for example, shoring up controls, driving refinancing or disposals, or rebuilding investor credibility.

Business strategy is another fertile ground for on-demand talent, with cost pressures including energy, tariffs and demand volatility prompting industrials to make course corrections, carve-outs and site decisions at pace. Seasoned interims can hit the ground running to take organizations to the next stage; we’ve seen a 71% increase YOY in hiring independent experts for manufacturing excellence projects, and a 200% increase on supply chain projects.

Demand for independent talent at the top is also on the rise: requests for interim CEOs and presidents has increased 80% YOY. This is being driven by a convergence of factors – including economic volatility, executive retirements, and the ever-evolving demands placed on today’s business leaders. Although CEO exits can have significant financial and reputational implications, Heidrick & Struggles reporting shows that succession planning often doesn’t get the board attention it deserves. In such cases, interim CEOs can quickly backfill leadership gaps and ensure continuity.

On-demand talent takeaways for UK industrials

Interim leadership isn't a stop-gap solution; it's a strategic move to increase resilience and make organizations future-ready. Boards and executive teams in industrial organizations can maximize the use of independent talent by hiring credible interims to ensure continuity and execution, rather than pausing transformation during protracted hiring cycles.

There's also a strong argument for putting finance first, with finance chairs pivotal in taking advantage of industry opportunities. This is perhaps why interim CFOs continue to be the most frequent plug-in at the high-end of the on-demand talent market, tasked with handling cash, controls, and transaction readiness.

To succeed, industrials should also seek out specialists for large transformation programs. Initiatives like the decarbonization of heavy industry, supply-chain reconfiguration, and digital programs often require leaders who have seen and done it before at scale—making experienced interim talent an ideal option.

With individuals possessing these highly specific skillsets in high demand, organizations must move quickly and decisively to secure the expertise they need to meet internal demands and successfully drive critical transformations.