UK Manufacturing Output Takes a Dive

The United Kingdom has experienced a significant drop in its manufacturing ranking, falling out of the top ten countries for the first time. According to a recent report from Make UK, the country's manufacturing output has plummeted, contributing £217 billion to the economy last year. This marks an 11% decrease from the previous year's £244 billion, although it is still an improvement from the £183 billion recorded two years ago. The UK's current position is now at number 15, a notable decline from its previous 8th place.

Within the manufacturing sector, electronics and electrical equipment play crucial roles. Electronics accounted for 8% of exports in the past year, while electrical equipment saw a rise to 4.4% in 2024 from 2.7% in 2023. The 'UK Manufacturing: The Facts 2024' report highlights that manufacturing jobs offer higher average salaries compared to other sectors, with an increase to £38,769 this year. In contrast, salaries in services and the wider economy average at £34,698 and £35,404, respectively.

When it comes to export destinations, the United States remains the top market for UK-manufactured goods, valued at £61.8 billion and showing growth from the previous year. Germany and the Netherlands follow closely behind in the top three. On the import side, Germany stands out as the largest supplier of manufactured goods to the UK, with a total value of £73.8 billion over the past 12 months.

The North West of England continues to lead in manufacturing output, contributing £29.5 billion to the economy, closely followed by the South East at £26.1 billion. Despite these regional strengths, there are emerging opportunities in the renewable energy sector that could drive growth and innovation in the manufacturing industry.

Kelly Becker, President of UK and Ireland, Belgium, and Netherlands for Schneider Electric, emphasizes the potential for the UK to reclaim its status as a manufacturing powerhouse by leveraging the energy transition. Becker advocates for integrating this transformation into the upcoming Industrial Strategy to support the manufacturing and adoption of solutions that promote decarbonization and digital transformation. By investing in the manufacturing sector and prioritizing sustainability, the UK can position itself as a global leader in climate action and innovation.