UK manufacturing added £21bn in output in 2025, even as the sector contended with a shrinking workforce and fewer active manufacturers, according to our analysis of ONS data.
The increase came despite a reduction of more than 36,000 manufacturing jobs and 2,500 fewer manufacturers operating across the UK, underscoring a decisive shift toward higher productivity and more efficient production.
UK Manufacturing - Five years of sustained growth
2025 marked the fifth consecutive year of output and productivity growth for UK manufacturing. In real terms, the total value of factory production is now 27.8% (£55bn) higher than in 2020, highlighting a sustained recovery and long-term structural improvement in the sector.
Overall factory output rose by 3.4% to nearly £639bn in 2025, driven by strong performance in several high-value industries:
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Aerospace: +£6.7bn
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Chemicals and pharmaceuticals: +£4.2bn
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Metal and machinery manufacturing: +£2.6bn
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Computers and electrical products: +£1.9bn
These gains reflect continued investment in advanced manufacturing, automation, and productivity-enhancing technologies.
Productivity continues to improve
After adjusting for inflation, FourJaw estimates that UK manufacturing productivity increased by 1.4% (£8.9bn) in 2025 compared with the previous year.
Average output per manufacturing employee rose by 2.9% year-on-year, equivalent to an additional £7,000 per worker in real terms, reinforcing the trend toward doing more with fewer resources.
Mixed Performance across sectors
However, not all parts of manufacturing experienced growth.
Food production rose in value to £109bn, largely driven by food price inflation, which peaked at 4.7% in August 2025. However, in real terms, food manufacturing output declined by 1% (£1.1bn) compared with 2024.
The automotive sector faced a more pronounced downturn. Output from motor vehicles and trailer manufacturing fell by £5.4bn (7%), amid reduced domestic demand, export tariffs, ongoing trade uncertainty, and significant disruption caused by a major cyberattack.
Commenting on the findings, Chris Iveson, CEO at FourJaw Manufacturing Analytics, said:
“UK manufacturing is proving that resilience and innovation are winning the day. To deliver £21bn more in output is a phenomenal achievement given current workforce challenges and points to a sector successfully embracing continuous improvement and productivity-enhancing technology. The resurgence of UK manufacturing is down to smart, efficient production and maximising the output of every machine and every employee.“
Methodology
FourJaw’s data team analysed a range of data provided by the Office of National Statistics (ONS) to create a rolling picture of output and productivity for the whole UK manufacturing sector and at the subsector and company level. Sources included the ONS’s Index of Production, producer price inflation datasets, and UK business activity, size and location statistical bulletins. FourJaw calculated productivity levels by adjusting output figures to reflect the corresponding inflation rate. Company and employee-level figures are averages based on the value of output and productivity per assumed active UK manufacturer at the time. Performance where indexed is indexed to January 2024 levels.
