The UK has moved up one place to 11th in the global manufacturing output rankings, according to
Make UK’s latest
Manufacturing – The Facts report. The sector produced $279 billion in 2023, placing it just behind Brazil, which returned to the top 10 for the first time since 2012. China, the USA, and Japan continue to dominate the global manufacturing landscape, with Germany maintaining its position as Europe’s leading industrial economy. Italy and France follow as the continent’s second and third largest producers.
Despite falling out of the top 10 last year, UK manufacturing remains a cornerstone of the national economy. It accounts for 42% of total exports, 48% of business R&D, and 17% of business investment. The average manufacturing salary stands at £41,220, comfortably ahead of the economy-wide average and significantly higher than the services sector.
The USA remains the UK’s largest export market, followed by Germany and the Netherlands. Seven of the top 10 export destinations are now in the European Union (EU), with combined exports worth £143 billion — more than double the value of exports to the USA and nine times that of China. Food and drink is the UK’s largest manufacturing sector by gross value added, followed closely by transport (aerospace and automotive) and chemicals and pharmaceuticals. These three sectors also account for 70% of all manufacturing R&D activity.
Regionally, the North West leads the UK in manufacturing output, generating £29.5bn and employing 335,000 people. Wales has the highest proportion of manufacturing in its economy at 15.6%, well above the national average of just under 10%. Dr Seamus Nevin, Make UK’s chief economist, said the figures highlight the need for a long-term industrial strategy to ensure the UK retains its place among the world’s leading advanced manufacturing nations.