The UK manufacturing sector has edged up one place in the global league tables, now ranked 11th worldwide, according to Make UK’s annual UK Manufacturing – The Facts report. The findings underline the industry’s enduring importance to the economy, its competitive global position, and the shifting trade dynamics shaping the sector’s future.
The UK’s Place in Global Manufacturing
In 2023, UK manufacturing output reached £206.6bn, placing the country just behind Brazil (£214.8bn). This marks a return to the top ten for Brazil for the first time since 2012.
Globally, China continues to dominate with output valued at £3.5tn, followed by the United States (£2.1tn) and Japan (£622.2bn). Within Europe, Germany retains its position as the continent’s industrial powerhouse, ranking fourth worldwide with £620.7bn of output. Italy (£261.5bn) and France (£219.2bn) round out the European top performers, ranked eighth and ninth respectively.
Export Performance: The US Leads, But the EU Dominates
The United States remains the UK’s largest single export destination at £59.3bn. However, the EU remains the most significant market overall:
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Seven of the UK’s top ten export destinations are in the EU.
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Collectively, EU exports were worth around £143bn in 2024 — more than twice the value of exports to the US and nearly nine times the level of exports to China.
Germany (£32.1bn), the Netherlands (£27.9bn), and Ireland (£23.9bn) follow the US as key destinations. Notably, trade with the Netherlands may be inflated by goods routed through the Port of Rotterdam.
This underlines the EU’s continued importance for UK manufacturers, with Make UK urging government action to reduce trade barriers with its largest market.
Sector Strengths: Food, Transport, and Pharmaceuticals
Three key subsectors anchor UK manufacturing:
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Food and Drink: The largest subsector, contributing 18% of manufacturing gross value added (GVA).
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Transport: Accounting for 17% of GVA, powered by world-class aerospace and automotive industries.
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Chemicals and Pharmaceuticals: Contributing 13% of GVA, with these industries — alongside transport — responsible for 70% of UK manufacturing R&D investment.
This concentration of high-value, innovation-led industries highlights the strategic importance of the sector in driving productivity and technological progress.
Regional Picture: North West and Wales Lead the Way
Manufacturing’s footprint remains strong across the UK, with certain regions standing out:
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North West: The UK’s largest manufacturing region, generating £29.5bn in output and employing 335,000 people. Manufacturing contributes nearly 15% to the region’s economy and accounts for around 10% of the workforce.
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Wales: Holds the highest manufacturing share relative to its economy, with the sector making up 15.6% of Welsh output, compared with the UK average of just under 10%.
These figures demonstrate the critical role manufacturing plays in supporting regional economies, jobs, and skills.
Pay and Productivity: Outperforming the Wider Economy
Manufacturing continues to deliver high-quality jobs and strong wage growth:
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The average manufacturing salary rose nearly 7% in 2023 to £41,220, well above the economy-wide average (£38,224) and the services sector (£37,559).
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The sector also accounts for 42% of UK exports, 48% of business R&D, and 17% of business investment.
This underlines manufacturing’s role as a driver of both economic resilience and innovation.
Commenting on the findings, Make UK’s Chief Economist, Dr Seamus Nevin, stressed the importance of recognising manufacturing’s place in the modern economy:
“These figures reflect not just the importance of manufacturing to the economy but factors and trends which are redrawing the contours of the global economy at an accelerating rate. These trends reinforce why it was vital to introduce a long-term industrial strategy to take competitive advantage of our undoubted strengths.”
With global competition intensifying and technological change reshaping industries, the report makes clear that manufacturing is not only a cornerstone of the UK economy today but also central to its future growth.
Read the complete report at Make UK.
