UK manufacturers sleepwalking into DPP crisis, new research reveals

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Recent research from Forterro, a European industrial software provider, has uncovered that a large number of UK manufacturers and wholesalers are not quite ready for the upcoming EU Digital Product Passport (DPP). Surprisingly, less than half (47%) of those surveyed are even aware of this regulation and what it means for their businesses, even though it will be mandatory for anyone exporting products to the European Union.

Even more concerning is that only 43% of organizations feel prepared to comply with the DPP, a significant regulatory change set to roll out in 2027 that will transform how products are traced and how transparent their lifecycles are across Europe. These insights are part of Forterro’s 2025 study, The Digital Future of the European Industrial Midmarket, which also revealed that nearly one in five respondents (19%) were uncertain about whether their business would be impacted by this regulation at all.

Barriers to DPP readiness

UK midmarket industrial firms have pointed to the complexity of regulations as the main hurdle to DPP compliance, with 47% of respondents highlighting this issue. This challenge is further complicated by a lack of suitable technology to handle compliance needs and not having enough internal resources dedicated to compliance. On average, UK companies anticipate spending around £28,000 in the coming years to fulfill their DPP requirements.

Claudia Schmidhäuser, Senior Principal of Product Management at Forterro, shared her thoughts:

“The Digital Product Passport will be as transformative for product manufacturing as GDPR was for data — it’s that significant. However, it shouldn’t just be seen as a compliance hurdle. It also offers a fantastic chance to enhance transparency, sustainability, and customer trust.

“We witnessed the fallout from being unprepared when GDPR was launched, and far too many UK midmarket companies are still unaware or ill-equipped for the DPP. With the deadline approaching fast, businesses need to take action now to ensure their systems, data, and processes are up to speed.”

The Digital Product Passport is essentially a digital record that holds key details about a product's identity, its makeup, lifecycle, how easy it is to repair, and its environmental impact. This initiative will roll out in phases, starting with battery products in 2027, followed by other categories like textiles and iron and steel.

Once it's up and running, any product lacking a compliant Digital Product Passport won't be allowed in the EU market. Each EU member state will set its own penalties for non-compliance, but fines could soar to as much as 5% of a company's annual turnover in the EU.

When it comes to compliance, competitiveness, and the broader challenges at play, environmental regulations have emerged as the toughest hurdle for midmarket industrial firms in the UK. About 45% of those surveyed indicated that regulatory compliance significantly impacts their decisions on operations and technology investments, as businesses strive to stay competitive and dodge potential fines. Interestingly, nearly half of the respondents feel that compliance can actually give them a competitive edge, rather than just being a bureaucratic hassle.

The research also sheds light on other pressures facing the UK industrial midmarket. Roughly one-third of respondents pointed to the need to adapt their exports due to recent US tariffs as their biggest challenge, highlighting the ongoing trade tensions that are affecting industries like steel, aluminum, and automotive manufacturing. Additionally, global economic and political uncertainty, along with the need for resilient supply chains, were also major concerns.

Claudia Schmidhäuser shared some insights:

“Midmarket companies are navigating a more complicated landscape these days, often lacking the specialized knowledge that larger organizations have at their disposal. Yet, compliance and competitiveness are becoming more intertwined than ever. Whether it’s tackling DPP, environmental reporting, data protection, or adapting to changing trade tariffs, businesses that upgrade their systems sooner rather than later will see improvements in efficiency, visibility, and customer trust.

“Getting ready for new regulations takes time, especially in the initial stages of implementation. UK manufacturers should start their preparations now.”

For more details, you can download the complete report, The Digital Future of the European Industrial Midmarket, at: https://www.forterro.com/en/resource/digital-future-research-report