Copper-coated chill rollNew research from
BEP Surface Technologies warns that the UK’s electroplating and surface finishing sector is shrinking at an accelerating rate, with one in six firms disappearing over the past decade and most of the remaining businesses showing no real-term financial growth.
The analysis of Companies House balance sheets shows that of the 80 independent electroplating firms operating in 2015, only 67 remain, and at least seven of those are already insolvent or being wound up. Across the group, combined net worth has barely increased despite inflation rising by more than 40% in the same period. Most financial strength is concentrated in the top 10 companies, while the majority are barely breaking even.
Andrew McClusky, managing director of BEP Surface Technologies, said: “This industry has been slowly and quietly shrinking. Not failing in headlines, but gradually thinning out each year, one plant at a time. Once the capability falls below critical mass, it will not return. We are close to that point.”
BEP’s own balance sheet places it firmly in the top tier of the sector, with net assets exceeding £3 million and a long history of supporting nuclear, defence, rotating equipment and wider industrial clients. However, broader data shows an industry where many competitors struggle to stay viable, even after this year’s Chrome 6 authorisation under UK REACH helped stabilise the market. Several firms have already removed plating tanks, exited chrome processes entirely, or closed following fires, restructurings or prolonged losses.
Capability is crucialMr McClusky added: “If a power station is waiting for a refurbished turbine shaft, or if a naval gearbox needs to be back in service, you cannot wait three months for an international sub-contract queue. Capability is either here when you need it, or it is not — that is how serious this is.”
He warned that while the UK’s decision earlier this year to permit continued, tightly regulated use of Chrome 6 under UK REACH prevented an immediate collapse, it did not resolve deeper structural problems. “Authorisation stopped the immediate fall, but it did not rebuild the ground beneath us. The sector is still under strain, and without coordinated action, we will lose capability that the UK cannot replace.”
Skills shortages remain a critical issue. Mr McClusky said: “You cannot learn surface engineering from a PowerPoint or just from the recently announced V-Level qualifications. They have their place, but they are not a substitute for real benches, real plants and real operators. Unless the UK rebuilds proper workshop-based training, with young people learning alongside skilled operators who have spent decades on the shopfloor, we will lose this knowledge faster than we can replace it.”
Despite these pressures, Mr McClusky emphasised that SMEs can modernise when conditions are favourable. “Give SMEs clear rules and a nudge on tech, and they move. We have seen it first-hand. The wins include better yields, fewer reworks and faster audits. That is how you keep capability here and make it cleaner and more competitive.”
He concluded: “The sector now needs realignment, with a clear understanding of where capability remains strong, where it is strained and where intervention can prevent irreversible damage. We have a narrow window to safeguard and rebuild this industry. If we do not act now, we will not get a second chance.”