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Make UK’s annual analysis of the UK manufacturing industry has been published, and although the sector continues to show resilience, it has fallen four places to 12th in the world rankings based on manufacturing output compared to its ranking of 8th position in 2023. The sector contributed £217bn in output to the economy last year, down from the £224 billion output reported in 2023.
In the latest rankings, the UK finds itself behind Mexico, which has surged to seventh place with an output of $316bn, as well as trailing Italy ($283bn), Russia ($287bn), and France ($265bn).
Taiwan has also inched ahead of the UK, driven by its significant role in the global chip manufacturing industry, which has seen tremendous growth in recent decades.
China continues to dominate the rankings with an output of $5.06 trillion, accounting for nearly a third of global production. The US holds the second spot with an output of $2.7 trillion.
International Trade with the USA increases
For international trade, the US remains the top destination for UK-manufactured goods, with exports increasing to £61.8bn from £56.7bn last year. Germany and the Netherlands also hold strong positions among our top export partners. On the import side, Germany leads as the primary source of manufactured goods for the UK, with imports totalling £73.8bn over the past year.
Regionally, the North West of England maintains its status as the UK’s manufacturing powerhouse, with an output valued at £29.5bn. The South East follows closely with an output of £26.1bn.
UK Manufacturing 2024 Facts
- Accounts for £217 billion worth of output
- Supports 2.6 million jobs and wages are 10% higher than the whole economy
- The average salary in the sector has risen by £2,281, bringing it to £38,769.
- Goods account for 45% of total exports with the USA being the biggest export market, worth £61.8Bn
- Investment worth £38.8bn took place
Industrial Strategy to drive manufacturing growth
Make UK has called on the Government to reintroduce a formal industrial strategy.
Originally developed under Theresa May's Conservative administration but later discontinued, this strategy aims to bolster key sectors where the UK has a competitive edge.
Areas of focus would include aerospace, pharmaceuticals, luxury automotive manufacturing, and emerging technologies such as artificial intelligence, nuclear small modular reactors (SMRs), quantum computing, and floating offshore wind turbines.
Manufacturing accounted for 17pc of the UK economy in 1990 but now accounts for 9.4pc according to official figures.
Jonathan Reynolds, the Business and Trade Secretary, said: “This shows just how competitive the global market is for manufacturing these days.
“If you stand still, as previous governments have done, you risk other countries stealing a march on you. Britain has a thriving, successful manufacturing sector. But these figures show that the industry needs stability and a clear long-term plan.
“That’s what our new industrial strategy will deliver – ensuring UK manufacturing rises up the rankings, and has the confidence it needs to drive economic growth and deliver a fairer, greener future.”
Visit Make UK Insights for an in-depth look at the state of the UK Manufacturing industry and its economic impact.
Source: Make UK - UK Manufacturing Report 2024.
