UK Manufacturing Productivity Index

Q1 2025 Update

Q1 Manufacturing Output up 1.3% with growth in key sectors, but challenges persist

According to our analysis of the latest ONS data the value of UK manufacturing output grew to £153.1bn in Q1 2025, up 1.3% (£1.9bn) from the same period of 2025, thanks largely to production gains worth more than £1bn to the shipbuilding and aerospace manufacturing sectors, according to an analysis of ONS data by FourJaw Manufacturing Analytics.

The value of Automotive, Aerospace & Transport Equipment produced in the UK increased to £33.4bn in Q1 2025, up 6.4% year-on-year, with a 60% (£1.1bn) increase in the value of ships and boats built here and a 17% (also £1.1bn) increase in aircraft, spacecraft and related machinery production.

Shipbuilding in the UK was worth £2.8bn in Q1 2025, while the value of aerospace manufacturing output was £7.7bn. The value of motor vehicle & trailer manufacturing fell by £343m (1.68%) in the same period.

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

After achieving a record high in output in the final quarter of 2024, it is good to see UK manufacturing deliver further year-on-year growth in Q1 2025, and productivity improvements in most sectors.

Chris Iveson, CEO & Co-Founder

Subsector output and productivity

Metals, Metal Products & Machinery manufacturing output increased by £398m (3.4%)
Food Products manufacturing output achieved gains worth £318m (1.3%)
Paper, Paper Products & Printed Material manufacturing output improved by £295m (5.2%)
Textiles, Apparel & Leather Products manufacturing output increased by £77m (3.2%)

The value of Chemicals & Pharmaceutical Preparations produced in the UK experienced the most significant decline, falling by £422m (3.8%) year-on-year.

Other sectors with declining output were:

Coke & Refined Petroleum Products output fell by £89m (3.7%)
Alcohol & Tobacco Products output was down by £38m (0.8%)
Computer, Electronic & Electrical Products output declined by £60m (0.6%)

Q1 UK Manufacturing Output by subsector

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.

"“The fact that growth was achieved despite ongoing headwinds and additional global trade uncertainty is a credit to the resilience and adaptability of UK manufacturing.

“UK manufacturing is a growth industry again, but these are still challenging times. Rising costs make productivity and efficiency gains crucial for the long-term viability of most manufacturers today.”

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 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.

Q1 Manufacturing Output up 1.3% with growth in key sectors, but challenges persist

Q1 2025 UK Headline Performance