UK Manufacturing Productivity Index

Q1 2024 UPDATE

Food, beverage and automotive
manufacturers drive Q1 productivity

FourJaw's quarterly analysis of ONS data shows that UK manufacturers produced goods and materials worth £150.5 billion in the first three months of 2024, a reduction of 0.8% year-on-year, however, several sectors bucked the trend.

Q1 HEADLINE PERFORMANCE

Q1 HEADLINE PERFORMANCERead More

UK MANUFACTURING PRODUCTIVITY INDEX

UK MANUFACTURING PRODUCTIVITY INDEXRead More

SUBSECTOR OUTPUT & PRODUCTIVITY

SUBSECTOR OUTPUT & PRODUCTIVITYRead More

Q1 SUBSECTOR PERFORMANCE

Q1 SUBSECTOR PERFORMANCERead More

Q1 2024 UK HEADLINE PERFORMANCE

Source: Office of National Statistics & FourJaw Manufacturing Analytics 2024.

150.5bn Total output value of UK Manufacturing (Down 0.8% YOY)

1.0% YoY PRODUCTIVITY INCREASE ACROSS THE SECTOR (WORTH £1.6bn)

1.1m Average output value per manufacturer (Down 0.2% YOY)

0.5% Productivity Decrease per manufacturer YoY (worth £5.4k each)

"While it was encouraging to see the UK economy return to growth in the first quarter of 2024, manufacturers continue to face economic uncertainty, supply chain issues, and higher input costs."

Chris IvesonFourJaw - CEO & Co-Founder

Subsector output and productivity

Food production increased by 4.3% to £25.3bn in the first three months of 2023, thanks partly to productivity improvements worth an estimated £967m.
The motor vehicles & transport equipment industries also boosted output, delivering a £2.6bn (8.8%) year-on-year gain to £31.9bn in Q1 2024.
Producers of alcoholic beverages and tobacco products also achieved productivity gains worth £249m over the last year, boosting output levels to £4.7bn.
While the overall fall in manufacturing output was led by reductions in the metals, metal products & machinery (down 11.5%) and chemicals & pharmaceutical preparations (down 7.4%), both of these sectors recovered ground in the first three months of 2024

Manufacturing Productivity Index | CEO VIEWPOINT

Chris Iveson, CEO and Co-Founder of FourJaw Manufacturing Analytics provided his thoughts and perspective following the release of Q1's manufacturing productivity index.

"Manufacturing has been robust over the last few years and many manufacturers have delivered significant productivity gains to protect their margins and businesses.

Although output is down a touch over the last quarter, it is encouraging to see sectors such as food production and automotive bucking the trend and delivering substantial improvements."

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 £61bn.

For a manufacturer producing £4.5m worth of goods this year, that means the ability to get £1.3m more output in 2024 from their existing machines, people and production lines.

Looking to increase your manufacturing productivity levels? Learn more about our technology and calculate your potential ROI via the links below.

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 June 2022 figures.