Make UK’s latest Facts report highlights both progress and pressure points for the UK manufacturing sector. FourJaw CEO Chris Iveson shares why adaptability and digitisation will be key to turning uncertainty into opportunity.
The latest data from Make UK shows that UK manufacturers produced £220 billion worth of output last year, £3 billion more than the year before. Investment also increased, reaching £44 billion, while the UK climbed one place in the global league table to become the 11th largest manufacturing economy.
The US remains the UK’s biggest export destination, worth £59 billion in 2024. But the proportion of UK goods headed overseas has declined, slipping from 45% to 42% in the past year.
On the surface, these figures show resilience. Yet, as FourJaw CEO Chris Iveson points out, they mask deeper challenges facing the sector.
“Producers are having to adapt to another economic storm many can ill afford,” says Chris.
“Trade uncertainty is affecting investment, export activity, and supply chains, and could lead to further contraction in the UK manufacturing sector. Many manufacturers I speak to have shelved their growth plans and are focusing on building adaptability and resilience into their operations.”
Global uncertainty, from trade policy shifts to supply chain disruption, is making large-scale investment decisions harder. Rising wages and employment costs are squeezing margins further. For many manufacturers, the path forward is less about expansion and more about survival.
But uncertainty is not without opportunity. As Chris highlights:
Resilience comes from adaptability – manufacturers that reshape supply chains and focus on controllable factors are better placed to ride out shocks.
Data drives better decisions – by digitising processes and capturing machine data, manufacturers gain visibility of true performance, which allows for quick and targeted improvements.
Productivity offsets cost pressures – many FourJaw customers achieve output and capacity gains within months, helping to balance rising labour and energy costs.
“Uncertainty is the enemy of big capital investment, but it can also be the mother of invention,” Chris explains. “Manufacturers who focus on efficiency and sustainability through digitisation are not just becoming more resilient today — they are creating a competitive advantage for tomorrow.”
Government commitments to advanced manufacturing, clean energy, defence, aerospace, automotive, and life sciences hold promise. But it is the actions manufacturers take now that will determine who is best positioned when opportunities arrive.
“Manufacturers that get their house in order during the tough times will be more resilient in the moment,” says Chris, “but also better prepared to respond to new opportunities in the future.”
Read the complete report at Make UK.