Would it surprise you to learn that the UK's manufacturing sector has emerged as one of the few major manufacturing players to deliver sustained improvements in both output and productivity over the last five years?
For this year's National Productivity Week, we analysed manufacturing output and employment across the world’s largest manufacturing economies (those with output worth £500 billion or more in 2025).
Our research reveals that the UK’s manufacturing sector is quietly outperforming its global peers on productivity. Despite ongoing turbulence, UK manufacturers have moved past the challenges of the last “lost decade” into a new environment of growth and improved efficiency.
A decade of decline (2010–2019)
Before the recent turnaround, the UK manufacturing sector endured a decade of austerity and decline. Between 2010 and 2019, output fell by 6% after inflation, a trend also seen in other major economies like France, the US, Germany, and South Korea.
Worse, the UK's output decline came with a 5% increase in the manufacturing workforce. The resulting inefficiency was dramatic: manufacturers were paying more people to produce less in real terms, leading to a 10% drop in productivity by the end of the decade.
This graph shows manufacturing output 2010-2025
The 2020 reset: A strong rebound
The year 2020, marked by COVID and Brexit, served as a sharp reset for UK manufacturing. Output value declined by 12% that year, broadly in line with other major European producers. Since then, the sector has rebounded strongly, growing despite challenges.
In nominal value, UK manufacturing output in 2025 was 40% higher than in 2020. This post-pandemic growth rate surpassed several major global competitors, including the US (+38%), the European Union (+36%), Germany (+31%), and China (+28%).
Even after accounting for inflation, UK manufacturers delivered a solid performance in real terms.
After inflation, UK manufacturing output in 2025 was 6% above 2020 levels. This real-terms growth outperformed peers like the United States (+4%) and Japan (+2%), while Germany saw a 6% decline.
Delivering more with significantly less
While achieving output growth is a measure of success, the UK’s true distinction lies in a critical productivity measure: output per worker.
The graph shows output per worker 2010-2025
While some manufacturing economies hired more people to support output increases, UK manufacturers raised production after the pandemic despite a 4% reduction in the factory workforce. This 'doing more with less' approach is rare. South Korea is the only other major economy to increase real-terms output with a smaller workforce over the past five years.
This efficiency boost places the UK behind only South Korea (+34%), Spain (+14%), and India (+13%) among the world’s major manufacturing economies in productivity improvement since 2020. The UK's 10% productivity rise contrasts with key peers over the same period, where real output per worker declined: France (-6%), Germany (-5%), and the United States (-0.5%).
While the UK has made huge strides in growth, it is important to note where its efficiency stands today. In 2025, only factories in the United States (£449k per worker) and France (£339k per worker) produced more output more efficiently than those in the UK (£253k per worker).
The graph shows manufacturing output & productivity change 2020-2025
A Productivity powerhouse being reborn
The data provides a clear narrative. The UK manufacturing sector has transitioned from a 'lost decade' of declining productivity to what is emerging as a strong post-pandemic turnaround. The sector has demonstrated real-terms growth faster than many peers and rivals and has become significantly more efficient.
We believe this robust performance is more than a simple recovery. It signals a new, innovative spirit within UK manufacturing and a willingness to overcome deep challenges by rejuvenating production practices and refreshing factory environments with new productivity-boosting technologies.
Major investments are fuelling growth in industrial modernisation and advanced manufacturing across the UK. Commitments include £2.6 billion for Rolls-Royce modular nuclear energy reactors, £1.3 billion for Sheffield Forgemasters’ defence capabilities, and £80 million from Unilever for a new robotics-powered fragrance plant. These investments show the continued vitality of UK manufacturing and its ability to adapt to new opportunities and technologies.
This innovative spirit will be crucial if we are to continue delivering growth and productivity, and make the UK a true manufacturing productivity powerhouse once again.
Methodology: In producing this analysis, FourJaw used World Bank data to identify the world’s top 20 manufacturing economies. Then, we examined local sources to find the most reliable data and estimates for total manufacturing output and employment from 2010 to 2025. We also identified relevant inflation figures for each economy, focusing on those that show the cost of manufacturing inputs when available. Data sources included: Brazilian Institute of Geography and Statistics, China National Bureau of Statistics, France National Institute of Statistics and Economic Studies, Germany Federal Statistical Office, India Annual Survey of Industries, Italy National Institute of Statistics, Japan Ministry of Economy, Trade and Industry, Korea Development Institute, Spain National Statistics Institute, UK Office for National Statistics, and US Annual Survey of Manufactures. Some of the most recent figures are AI-generated estimates based on industrial indices and economic forecasts.
