UK drops out of top ten manufacturing nations for first time

The sector contributed £217bn in output to the economy last year, supporting 2.6m jobs. Firms have also increased their investments, totalling £38.8bn, surpassing 2023 levels.

As highlighted in ‘UK Manufacturing: The Facts 2024’, manufacturing jobs continue to offer better pay than many other sectors, with average salaries increasing by £2,281 to £38,769 this year. In comparison, the average salaries in the services sector and the broader economy are £34,698 and £35,404, respectively.

The US remains the top destination for UK-manufactured goods exports, with a value of £61.8bn, up from £56.7bn last year. Germany and the Netherlands complete the top three export markets. Regarding imports, the UK purchased the most manufactured goods from Germany, spending £73.8bn over the year.

Regionally, the North West of England continues to lead UK manufacturing, with an output of £29.5bn, closely followed by the South East at £26.1bn.

This year, the UK has dropped out of the top ten manufacturing nations for first time, coming in at 12^th place.

Kelly Becker, President of UK and Ireland, Belgium and Netherlands, Schneider Electric, argues how harnessing the power of the energy transition needs to be a key part of the forthcoming Industrial Strategy, and how this will prove crucial for the UK to regain its status as a global manufacturing power.

“The UK has huge potential to regain its position as a manufacturing superpower, if it harnesses the transformative power of the energy transition. 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.”