UK Manufacturing Productivity Index

Q2 2025 Update

Q2 Manufacturing Output up 1.5%

According to our analysis of the latest ONS data the value of UK manufacturing output grew to £155.8bn in Q2 2025, up 1.5% (£3.8bn) from the same period in 2024, driven primarily by a 5.8% (£1.8bn) increase in the value of output from the automotive, aerospace & transport equipment sector.

Although the value of motor vehicles and trailers produced in the UK fell by 3% (£664m) year-on-year, this was dwarfed by a 28% (£2bn) rise in the value of aircraft, spacecraft and related machinery manufactured in the UK, and a 26% (£507m) increased in the production of ships and boats.

There were significant gains in the production of food products, where output increased by 3.4% (£880m) year-on-year, and chemicals & pharmaceutical preparations, which rose 7.6% (£822m) from the previous year.

The value of basic pharmaceutical products & preparations manufactured in the UK exceeded £7.9bn in the second quarter of 2025, 13% (£894m) more than the year before.

Q2 Headline Performance

Q2 Headline PerformanceRead More

UK Manufacturing Productivity Index

UK Manufacturing Productivity IndexRead More

Subsector Output & Productivity

Subsector Output & ProductivityRead More

Q2 Subsector Performance

Q2 Subsector PerformanceRead More

It is fantastic to see further growth in the value of UK manufacturing output, especially in sectors such as aerospace and pharmaceuticals, where we have world-leading manufacturing capabilities...

Chris Iveson, CEO & Co-Founder

Subsector output and productivity

Aerospace & Spacecraft equipment sector achieved a 28% (£2bn) increase in the value of output
Ships and Boats increased by 26% worth (£507m)
Food & Beverage products saw output increase by 3.4% (£880m) year-on-year
Chemicals & pharmaceutical preparations rose 7.6% (£822m)
Textiles, apparel & leather products output achieved gains worth 10.0% (£238m)
Computer, electronic & electrical products output increased by 1.5% (£152m)
Metals, metal products & machinery output was up 0.1% (£17m).

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 13.9% (£351m) year-on-year.
Motor Vehicles and Trailer products fell by 3% (£664m) year-on-year
Alcohol & tobacco products output was down by 1.8% (£107m)
Paper, paper products & printed material output fell by 0.9% (£53m).

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 Q2's manufacturing productivity index.

“It is fantastic to see further growth in the value of UK manufacturing output, especially in sectors such as aerospace and pharmaceuticals, where we have world-leading manufacturing capabilities.

This growth and the productivity gains that have made it possible have been achieved despite significant global economic uncertainty, which is a testament to the innovation and adaptability of our vital manufacturing sector.”

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.

Q2 Manufacturing Output up 1.5%

Q2 2025 UK Headline Performance