UK Manufacturing Productivity Index

Q3 2025 Update

Q3 Manufacturing Output up 1.7% Vs Q3 2024

According to our analysis of the latest ONS data, growth in the aerospace, textiles, electronics, metals and machinery industries pushed the value of UK manufacturing output to £156.5bn in Q3 2025, an increase of 1.7% (£2.6bn) from the same period in 2024.

Manufacturers of aircraft, spacecraft & related machinery delivered the biggest year-on-year productivity gains and a 26.5% (£1.6bn) increase in output in the three months to September, while the production of metals, metal products & machinery output was up 7.0% (£798m).

UK computer, electronic & electrical products manufacturing increased by 5.9% (£610m), and textiles, apparel & leather output was 10.0% (£244m) more than in Q3 2024.

The value of UK food production and chemicals & pharmaceutical preparations increased year-on-year by 4.1% (£1.1bn) and 2.5% (£358m) respectively. However, much of this was due to higher prices. The real level of food production was 0.7% (£192m) higher in 2024, while chemicals & pharmaceutical productivity fell by 0.4% (£53m).

Overall growth levels in UK manufacturing were dragged downwards by significant declines in the automotive sector. Motor vehicle & trailer manufacturing value fell by 12.6% (£2.5bn) between Q3 2024 and Q3 2025, The Society of Motor Manufacturers and Traders reported a large fall in vehicle output in September because "a cyber incident paused production at a major manufacturer, while plant restructuring drove down commercial vehicle volumes".

Q3 Headline Performance

Q3 Headline PerformanceRead More

UK Manufacturing Productivity Index

UK Manufacturing Productivity IndexRead More

Subsector Output & Productivity

Subsector Output & ProductivityRead More

Q3 Subsector Performance

Q3 Subsector PerformanceRead More

Given the uncertain geopolitical situation, the cost increases UK manufacturers must bear, and the major headwinds our automotive sector faces from tariffs and supply chain disruption, the fact that UK manufacturing has delivered yet another quarter of growth is encouraging.

Chris Iveson, CEO & Co-Founder

Subsector output and productivity

Aerospace & Spacecraft equipment sector achieved a 26.5% (£1.6bn) increase in the value of output
Food & Beverage products saw output increase by 4.1% (£1.1bn) year-on-year
Chemicals & pharmaceutical preparations rose 2.5% (£358m)
Textiles, apparel & leather products output achieved gains worth 10.0% (£244m)
Computer, electronic & electrical products output increased by 5.9% (£610m)
Metals, metal products & machinery output was up 7% (£798m).

Sectors where output had declined compared to the same period in 2024 were:

The value of Coke & refined petroleum products output experienced the most significant decline, falling by 18.1% (£437m) year-on-year.
Motor Vehicles and Trailer products fell by 12.6% (£2.5bn) year-on-year
Alcohol & tobacco products output was down by 0.3% (£18m)
Paper, paper products & printed material output fell by 2.1% (£128m).

Manufacturing subsector and productivity output

Manufacturing Productivity Index | CEO Viewpoint

Chris Iveson, CEO and Co-Founder of FourJaw Manufacturing Analytics, provided his thoughts and perspective following the release of Q3's manufacturing productivity index.

“The big picture for UK manufacturing is one of productivity and operational excellence in the face of adversity. Our manufacturers have digitised faster than any other area of UK industry and have achieved productivity gains that exceed most other major manufacturing economies in recent years.”

How Much More Productive Could Your Factory Be?

Manufacturing productivity can have a huge impact on a business's overall operational performance, competitiveness and profitability.

It is a key performance indicator that is just as important a 'health barometer' to an individual business as it is to the UK manufacturing sector as a whole.

There are various strategies that manufacturers can employ to increase productivity. One approach is to invest in technology and automation, which can streamline processes and lead to a reduction in manual labour, fewer errors, and increased production speed.

In addition, efficient supply chain management, minimising waste, and adopting sustainable practices all contribute to overall productivity. Regular evaluation and optimisation of workflows, along with fostering a positive work environment, can also have a significant impact.

When manufacturers proactively use FourJaw’s technology, they can achieve productivity gains of anywhere between 10-20% which can increase output capacity by as much as 30%.

Across the entire UK manufacturing sector, that would be a productivity boost of £62bn.

For a manufacturer producing £4.6m worth of goods this year, that means the ability to get £1.4m more output in 2025 from their existing machines, people and production lines.

Methodology

FourJaw Manufacturing Productivity Index

FourJaw’s data team analysed a range of data provided by the Office of National Statistics (ONS) to create a rolling five-year 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 and producer price inflation datasets, and UK business activity, size and location statistical bulletins. FourJaw calculated productivity levels by adjusting output figures in line with 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 Q1 2023 levels.

Q3 Manufacturing Output up 1.7% Vs Q3 2024

Q3 2025 UK Headline Performance