UK Manufacturing Productivity Index

Q4 2025 Update

The value of UK manufacturing output increased by £21bn in 2025

According to our analysis of the latest ONS data, the value of UK manufacturing output increased by £21bn in 2025, despite a workforce reduction of over 36,000 people and 2,500 fewer manufacturers.

2025 marked the fifth consecutive year of output and productivity growth for UK manufacturing. Last year, the total value of factory production was 27.8% (£55bn) higher in real terms than in 2020.

Factory output increased by 3.4% to nearly £639bn in 2025, driven by multi-billion-pound output and productivity gains in aerospace (£6.7bn), chemical and pharmaceutical (£4.2bn), metal and machinery (£2.6bn), and computers and electrical products (£1.9bn) production.

After adjusting for inflation, FourJaw estimates UK manufacturing productivity was 1.4% (£8.9bn) higher in 2025 than in 2024. Average output per manufacturing employee increased by 2.9% (£7,000) in real terms year-on-year.

Q4 Headline Performance

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UK Manufacturing Productivity Index

UK Manufacturing Productivity IndexRead More

Subsector Output & Productivity

Subsector Output & ProductivityRead More

Q4 Subsector Performance

Q4 Subsector PerformanceRead More

2025 Subsector output and productivity

Factory output increased by 3.4% to nearly £639bn in 2025, driven by multi-billion-pound output and productivity gains in aerospace (£6.7bn), chemical and pharmaceutical (£4.2bn), metal and machinery (£2.6bn), and computers and electrical products (£1.9bn) production.
After adjusting for inflation, FourJaw estimates UK manufacturing productivity was 1.4% (£8.9bn) higher in 2025 than 2024. Average output per manufacturing employee increased by 2.9% (£7,000) in real terms year-on-year.
Food price inflation, which reached 4.7% in August, increased the value of food production to £109bn in 2025. However, this was a real-terms decline of 1% (£1.1bn) from the previous year.
Automotive manufacturing, including motor vehicles and trailers, declined by nearly £5.4bn (7%) in 2025. The industry faced challenges including reduced domestic demand, export tariffs, trade uncertainty and disruption from a major cyberattack.

Manufacturing subsector output 2024 to 2025

Manufacturing Productivity Index | CEO Viewpoint

Chris Iveson, CEO and Co-Founder of FourJaw Manufacturing Analytics, provided his thoughts and perspective following the release of 2025's manufacturing productivity index.

"To deliver £21bn more in output with 36,000 fewer workers is a phenomenal achievement that 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.“

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 2026 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.

The value of UK manufacturing output increased by £21bn in 2025

2025 UK Full-year performance