The value of UK manufacturing output increased by £21 billion in 2025, despite a workforce reduction of over 36,000 people and 2,500 fewer manufacturing firms, according to an analysis of ONS data by
FourJaw Manufacturing Analytics — 2025 marked the fifth consecutive year of output and productivity growth for UK manufacturing. Last year, the total value of factory production was 27.8% — £55 billion — higher in real terms than 2020.
Factory output increased by 3.4% to nearly £639 billion in 2025, driven by multi-billion-pound output and productivity gains in aerospace (£6.7 billion), chemical and pharmaceutical (£4.2 billion), metal and machinery (£2.6 billion), and computers and electrical products (£1.9 billion) production. After adjusting for inflation, FourJaw estimates UK manufacturing productivity was 1.4% (£8.9 billion) higher in 2025 than 2024. Average output per manufacturing employee increased by 2.9% (£7,000) in real terms year-on-year.
Food price inflation, which reached 4.7% in August, increased the value of food production to £109 billion in 2025. However, this was a real-terms decline of 1% (£1.1 billion) from the previous year.
Meanwhile, automotive manufacturing, including motor vehicles and trailers, declined by nearly £5.4 billion (7%) in 2025. The industry faced challenges including reduced domestic demand, export tariffs, trade uncertainty and disruption from a major cyber-attack.
Chris Iveson, CEO at FourJaw Manufacturing Analytics, concluded: “UK manufacturing is proving that resilience and innovation are winning the day. To deliver £21 billion more in output is a phenomenal achievement given current workforce challenges and points to a sector successfully embracing continuous improvement and productivity-enhancing technology. The resurgence of UK manufacturing is down to smart, efficient production and maximising the output of every machine and every employee.“