UK manufacturing output plummets
The UK has dropped out of the top ten manufacturing countries for the first time as output plummeted according to a new report form Make UK.
The manufacturing sector contributed £217bn in output to the economy last year, down 11% from £244bn in the previous, bumper, year but still up from the £183bn in the year before. This now puts the UK at number 15, down from 8th previously.
Electronics accounted for 8% of exports last year, while electrical equipment was 4.4% in 2024, up from 6.5% and 2.7% respectively in 2023..
Like last year’s edition, ‘UK Manufacturing: The Facts 2024’ again reveals that manufacturing jobs are better paid than most, with average salaries rising by £2,281 to £38,769 this year. In comparison, salaries in services and the wider economy average at £34,698 and £35,404 respectively.
The US remains the UK’s top export destination for manufactured goods, worth £61.8bn and up from £56.7bn last year, with Germany and the Netherlands rounding off the top three.
In terms of imports, Germany is the biggest supplier of manufactured goods to the UK at £73.8bn over 12 months.
The North West of England remains the leading manufacturing area of the UK, with output worth £29.5bn, and is closely followed by the South East at £26.1bn.
However the growth in equipment for renewable energy is a key opportunity.
“The UK has huge potential to regain its position as a manufacturing superpower, if it harnesses the transformative power of the energy transition,” said Kelly Becker, President of UK and Ireland, Belgium and Netherlands for electrical equipment giant Schneider Electric.
“This needs to be a key part of the forthcoming Industrial Strategy which should assess and support the manufacturing and uptake of solutions that contribute to the decarbonisation and digital transformation of the UK economy and infrastructure. Many of these manufacturers are creating new, highly skilled jobs across the country and will help to supercharge local economies and maximise the UK’s competitive advantage globally, by developing local expertise and creating new trade and investment opportunities.
“Long term investment in the manufacturing industry, such as maintaining and expanding full expensing, will be critical to driving growth and prosperity, help the UK reach net zero, and set the standard for climate and sustainability standards globally.”
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