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 Statistics_UK Manufacturing Productivity Index
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UK Manufacturing Productivity Index

A Quarterly Look at the UK's Manufacturing Performance.

Q1 2026 Update

Aerospace boom drives marginal increase in UK manufacturing output as inflation fears rise

According to our analysis of the latest ONS data, manufacturing output increased by 1.4% (£2.2bn) over the last 12 months, reaching £159.4bn in Q1 2026. 

However, inflation has dampened these gains, with overall productivity falling by 1% after adjusting for price increases.

Read our full analysis on the UK Manufacturing output for Q1 2026 below. 

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 2026 performance

Source: Office of National Statistics & FourJaw Manufacturing Analytics 2026.
159.4bn Total output value of UK Manufacturing
1.0% YoY productivity change (decrease) across the sector
1.2M Average output value per manufacturer (+2.3%YoY increase)

UK Manufacturing Productivity Index

FourJaw analysis of ONS data reveals that the value of UK manufacturing output increased by 1.4% (£2.2bn) over the last 12 months, reaching £159.4bn in Q1 2026. However, inflation has dampened these gains, with overall productivity falling by 1% after adjusting for price increases.
 
 
Q1 2026 Manufacturing output

 

Aluminium manufacturing

“These are turbulent times, and that makes growth a big challenge for the manufacturing base as a whole. The sharp rises in energy prices we’ve witnessed since March are a major concern to manufacturers, and should be forcing even greater focus on efficiency and productivity to maintain profitability.

However, the human instinct is often to look at cutting costs first, missing the opportunity to get more out of their resources and drive ruthless efficiency, which is a more strategic pivot to deliver long term resilience. ”

Chris Iveson, CEO & Co-Founder

Q1 2026 Subsector output and productivity

  • Growth in UK manufacturing over the last year was led by a 12.1% (£929m) year-on-year increase in the aerospace (aircraft, spacecraft & related machinery) sector, which delivered output worth £8.6bn in the first three months of 2026.

  • UK manufacturers also delivered a 2.7% (£701m) increase in food production, a 3.4% (£358m) rise in the value of computer, electronic & electrical products, and 2.0% (£50m) more textiles, apparel & leather products. There were also gains in chemicals & pharmaceutical preparations (output up 1.2%) and alcohol & tobacco production (up 0.7%).

  • The value of automotive (motor vehicles & trailers) manufacturing was 3.3% lower in Q1 2026 than in Q1 2025, with output worth £21bn in the first three months of 2025. Although down by £715m year-on-year, this was over £2bn more than in the final quarter of 2025.

 

Q1 2026 Manufacturing subsector performance

 

Subsector output and productivity

Change in Key Sector Performance: Q1 2025 - Q1 2026
Change in Key Sector Performance: Q4 2025 - Q1 2026
Manufacturing subsector year on year output
Manufacturing subsector Q1 2025 compared to Q1 2026

Manufacturing Productivity Index | CEO Viewpoint

 

“The good news is that significant parts of the UK manufacturing sector are growing, and there are opportunities out there for those agile enough to seize them. Across the sector, whether they are growing or not, we see manufacturers embracing technology to drive efficiency and getting much smarter about how they keep their lines running.”



 

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.

 

Improve Factory Productivity with FourJaw

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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.