UK companies are accelerating localisation and regionalisation strategies to manage risk and build resilience as they navigate ongoing geopolitical uncertainty, a new survey by EY shows.
Conducted in August 2025, the survey of 100 UK CEOs – 70% of which are from publicly listed companies – found that CEO confidence has grown despite a turbulent macro and geopolitical environment.
87% of UK CEOs said they were very or somewhat optimistic about company performance over the next 12 months, an increase from 83% in May this year.
Going local
Against the backdrop of recent geopolitical challenges, including tariffs and trade negotiations, UK CEOs are taking proactive steps to embrace localisation and regionalisation strategies.
Localisation – initiatives such as producing goods in the country where they will be sold – has already been implemented by 41% of CEOs surveyed, while 23% have put regionalisation strategies, such as building supply chains within specific blocs, into practice.
44% are currently rolling out localisation measures, and 37% are in the process of implementing regionalisation plans.
Of those surveyed, 65% said they viewed localisation as a long-term strategic shift rather than a short-term tactical adjustment, with 71% also echoing this trend from a regional perspective.
The key areas CEOs are applying localisation and regionalisation strategies include, operations and supply chain, technology and data, and research and development (R&D).
Challenges persist
While CEOs are feeling more confident, many are also still cautious about the future. 41% said they believe the current elevated levels of geopolitical and economic uncertainty will persist for up to three years.
Most respondents (42%) identified geopolitical tensions as the most significant challenge to achieving their company’s financial targets over the next 12 months, while 35% referenced macroeconomic and market uncertainty with the same number (35%) also identifying trade tensions.
When it came to the subject of tariffs, 79% agreed that higher tariffs will materially weaken their company’s financial performance.
UK CEO respondents also identified clear priorities for policymakers. Ninety-two per cent said accelerating AI deployment in the public sector should be a national imperative, while 90% believe reducing public debt and restoring fiscal sustainability must be a top priority.
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