Between 2018 and 2023, the average value added by the UK manufacturing sector increased by $14,000 per worker, more than in any other major manufacturing economy.
Our analysis of global manufacturing output for National Productivity Week shows that the value added by manufacturing employees in the UK increased by almost $14,000 per worker between 2018 and 2023. These gains were higher than those achieved in any other major manufacturing economy over the same period.
World Bank data show that UK manufacturers delivered net output worth $280 billion in 2023 after removing the cost of energy, materials, and other inputs. FourJaw’s analysis, which also draws on OECD workforce data, reveals this equated to $109,000 of added value for each of the UK’s 2.6 million manufacturing workers in 2023. This figure was 15% more than the $95,000 value-add per worker achieved five years earlier.
The UK’s productivity gains have elevated the value of per-worker manufacturing output above that of Germany ($106,000), South Korea ($93,000), and Japan ($76,000). These economies continue to produce more than the UK in absolute terms and previously outperformed the UK on per-worker productivity. Only US manufacturing workers, who delivered net output worth $167,000 each, produced more value more efficiently than their UK counterparts in 2023.
China’s manufacturers delivered net output worth $4.7 trillion in 2023, more than a quarter of the world’s $16.2 trillion total. Statista reports that 214 million people worked in China’s manufacturing sector in 2023, which gives the world’s biggest manufacturing economy a per-worker productivity level of $22,000.
Chris Iveson, CEO at FourJaw Manufacturing Analytics, comments:
“Many of the world’s major manufacturing economies still produce more value in absolute terms than the UK, but they need many more people to do so. Only US factory workers create more value more efficiently than those in the UK.”
“Our analysis shows that the value of productivity improvements achieved by UK manufacturing workers between 2018 and 2023 was better than those achieved in any other major manufacturing economy. But the reality is that they’ve only just scratched the surface of what is now possible on productivity.”
National Productivity Week, which runs from the 27th of January until the 31st of January, is a campaign by the Productivity Institute to improve UK productivity. The Institute is hosting a series of events to help businesses increase productivity through people development, emerging technologies, and finance and investment deployment.
Our view at FourJaw is that Productivity isn’t just one factor in manufacturing success - it’s the factor.
As economist Paul Krugman famously stated, ‘Productivity isn’t everything, but in the long run, it is almost everything.’
For manufacturers, higher productivity means producing more with the same resources, reducing costs, increasing competitiveness, and driving profitability. In an industry where margins are tight and global competition is fierce, improving productivity through better processes, smarter technology, and data-driven decision-making is essential for long-term growth.
Ultimately, manufacturers prioritising productivity don’t just survive—they thrive.