Ungated Post | 04 May 2018
The true impact of UK manufacturing
The size of the UK’s manufacturing sector is closely monitored in official statistics which track the sector’s direct contribution to the economy, for example in terms of GDP and employment. But such measures do not reflect the full impact of manufacturing on the UK economy, which extends far beyond these headline estimates.
The Manufacturing Technologies Association (MTA) asked Oxford Economics to investigate this, and to estimate the true impact of UK manufacturing. This request follows in the footsteps of the government’s 2016 Manufacturing Metrics Review, which highlighted the need for a more comprehensive approach to measuring manufacturing activity.
In response, this report uses an economic impact assessment to quantify the full contribution that the manufacturing sector makes to employment and GDP. Crucially, this includes the wider economic “footprint” supported by the industry’s domestic supply chains, together with the wage-financed consumption of its workers and those in its supply chain.
Bringing together these wider impacts of manufacturing, we estimate that the total impact of manufacturing on UK GDP was £446 billion in 2016. For every £1 million that the manufacturing sector contributes to UK GDP itself, a further £1.5 million is supported across the wider economy through indirect and induced multiplier effects. On the same basis, manufacturing supported a total of 7.4 million jobs in 2016. For each job in the manufacturing sector itself, a further 1.8 are supported in other sectors of the UK economy.
Oxford Economics’ team is expert at applying advanced economic tools that provide valuable insights into today’s most pressing business, financial, and policy issues.
To find out more about our capabilities, contact:
Americas
Diantha Redd
+1 (646) 503 3052
Email
Asia Pacific
Peter Suomi
+65 6850 0110
Email
EMEA
Aoife Pearson
+44 (0)203 910 8054
Email
Related Services
Post
The Economic Footprint of JLR in the UK
This report examines the economic footprint of JLR in the United Kingdom in 2024. The analysis is conducted both at the national level, as well as on the West Midlands and North West regions, where JLR’s main facilities are located.
Find Out More
Post
Airbnb’s Economic Contribution to APAC in 2024: GDP, Jobs, and Regional Impact
Airbnb's platform connects hosts across Asia Pacific (APAC) with travellers from around the world. Oxford Economics was commissioned by Airbnb to quantify its economic footprint in 10 APAC markets in 2024.
Find Out More
Post
Economic Insights: Airbnb’s Contribution Through the Lens of Oxford Economics
Oxford Economics Australia delivered a tailored economic impact assessment for Airbnb, including GDP contribution modelling, job creation analytics, guest‑spend segmentation, and regional tourism dispersion insights to underpin Airbnb’s stakeholder communications and strategic growth initiatives.
Find Out More