HIDDEN HOPE FOR UK MANUFACTURING We are used to hearing stories of doom and gloom about the state of UK manufacturing, and its future. But a new analysis by FourJaw Manufacturing Analytics reveals that the UK manufacturing sector has achieved sustained growth in both output and productivity over the past five years, despite a shrinking workforce and historically high levels of inflation. FourJaw’s analysis of the world’s 20 largest manufacturing economies found that the UK’s output in 2025 was 6% above 2020 levels, after taking inflation into account, outpacing others such as the US (+4%) and Japan (+2%). Germany experienced a 6% decline over this period. Since 2020, UK manufacturers have also achieved a 10% boost in productivity (output per worker), with a 3% rise in the past 12 months alone. Among the major manufacturing economies, only South Korea (+34%), Spain (+14%), and India (+13%) have seen bigger productivity rises over the past five years. Despite a 4% reduction in the number of people working in UK factories, output has continued to rise, suggesting an increased adoption of automation, robotics and data analytics. The UK’s output of £253k per worker in 2025 was bettered only by the US (£449k) and France (£339k). FourJaw – a spinout from the University of Sheffield’s Advanced Manufacturing Research Centre – has also been delving into ONS data and found that the UK’s manufacturing output rose by 1.4% (£2.2bn) over the past year, reaching £159.4bn in the first quarter of 2026. However, inflation dampened these gains, with productivity falling by 1% after adjusting for price increases. There are 50,000 fewer people working in UK manufacturing than a year ago. The analyst has also been digging deeper into the performance of various UK sectors and found that the past year’s growth was led by a 12.1% (£929m) yearon-year increase in the aerospace sector. Food production rose by 2.7% (£701m), and computer, electronic and electrical products by 3.4% (£358m). But the value of automotive manufacturing dropped by 3.3% (£715m). “The narrative of decline in UK manufacturing should be put to bed,” says FourJaw CEO, Chris Iveson. “Yes, there are challenges, and yes, the number of manufacturers in the UK has declined over the years, but our analysis shows the sector has rebounded post-pandemic and is quietly outperforming many of its peers in output and productivity gains. “Given the global economy, it’s fair to say that the current operating environment is tough for many manufacturers,” he adds. “On the flip side, we can see there is renewed innovation happening in the UK, with a focus on efficiency and a commitment to overcoming challenges by updating production practices and adopting new productivity-boosting technologies.” Of course, these figures and trends could be eclipsed by the effects of the Middle East war, with soaring energy prices forcing manufacturers to focus even more on efficiency and productivity if they are to remain profitable. Tony Sacks, Editor n COMMENT Kno e ow mor Uptime d LeineLin Ear Do deliver reliability in hars nde’s 800 Series encode . more rn less. h e • Increa • Plan m • Predic give you c Wireless ase returns maintenance es ct failur e complete insight—befor diagnostics and conditio o eland Sales UK & Ir +44 1444 247711 sales@ //w @heidenhain.co.uk https:/ www.leinelinde.com
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