The world of subcontract manufacturing is making a surprising U-turn—showing signs of renewed liftoff after months of hesitation. According to the latest Contract Manufacturing Index from sourcing platform Qimtek, the market surged 61% in Q2 2025—on top of an already 50% jump in Q1. The future seems to be settling in.
An Index with Scale—and a Story
The CMI reflects the purchasing budgets of more than 4,000 active buyers and over 7,000 suppliers—cumulatively representing budgets of over £3.4 billion and turnarounds exceeding £25 billion. The index baseline of 100 corresponds to the market’s average between 2014 and 2018. In this context, a Q2 CMI score of 103 is particularly striking when compared to Q1’s 64, or Q2 2024’s low score of 59.
These numbers tell a clear story: April saw demand more than double overnight, May showed solid albeit moderating momentum, and June ended the quarter on a high—making it the strongest since January 2023.
Where the Work Is—and Isn’t
Breaking down the surge reveals stark contrasts. Machining and fabrication dominated, accounting for 45% and 50% of activity, respectively. Other roles—like moulding and electronics assembly—shrank significantly, down to just 5%.
Even more dramatic shifts occurred across industry sectors. Automotive shot from near-zero in Q1 to pole position—an astonishing 90,000% increase. It now nearly doubles the market size of the second largest sector, Marine. By contrast, Industrial Machinery—once top dog since 2021—fell 30%, placing it third behind Consumer Products and Heavy/Construction Machinery.
A Glimpse into Recovery—and Caution
Karl Wigart, owner of Qimtek, summed it up aptly:
“It is good to see the market up on the previous quarter. It finally seems to be getting up some momentum and shrugging off potential adverse factors. That said it is an uneven market. We have not had lots of new projects, but we have seen some of the larger buyers coming back to the table. We are hearing that there are more projects to come, but buyers are not sure when that will be. Hopefully this growth will continue in the next quarter.”
In short, optimism is returning, but unevenly. Demand is surging in core regions—especially where automotive output is accelerating. Yet the mood remains wait-and-see, as buyers tease new orders without committing on timelines.
Summary Table
| Metric | Q2 2025 | Q1 2025 | Q2 2024 |
|---|---|---|---|
| Contract Manufacturing Index | 103 | 64 | 59 |
| Machining Share | 45% | — | — |
| Fabrication Share | 50% | — | — |
| Other Processes Share | 5% | — | — |
| Top Sector: Automotive | 90,000% increase | — | Very low |
| Industrial Machinery Position | 3rd (down 30%) | — | 1st |
Bottom line: The Q2 surge in subcontract manufacturing reveals pent-up demand—and strong buyer re-engagement, especially in automotive. But with market unevenness and cautious optimism in the air, the real test will be whether this restart proves sustainable as the year progresses.