The true impact of UK Manufacturing
On behalf of
The Manufacturing Technologies Association
Our study highlights how the manufacturing sector’s impact on the UK economy extends far more widely than manufacturing companies themselves.
As conventionally measured in national accounts, the manufacturing sector in 2022 directly employed 2.6 million workers across the UK, who collectively generated £184 billion. However, our in-depth study reveals that the sector’s impact on the UK economy extends far more widely than manufacturing companies themselves. We estimate that the total impact of UK manufacturing on GDP was £518 billion in 2022, which is nearly a quarter (23%) of UK GDP. A particularly important part of this is manufacturers’ supply chain purchases, with UK manufacturers relying on a complex network of UK-based supply chains.
The manufacturing sector also makes an important contribution to the UK economy in other ways. It accounts for 34.5% of all UK goods and services exports with median wages in the sector 11% higher that the national average. Manufacturing also invests heavily in new technologies, with nearly half (47%) of total R&D investment made by manufacturers in 2022.
The experts behind the research
Our Industry Consulting team are among the world’s leading analysts of a variety of industrial sectors. They combine their expert insight with our state-of-the-art economic models and tools to answer the crucial questions facing our clients.
Emily Gladstone
Senior Economist
Andy Logan
Director of Industry Consulting
Tags:
Recent Related Reports
US-China relations improve, yet industrial recession remains likely
For the first time this year, our global industrial production outlook for 2025 has been upgraded. However, we still anticipate an industrial recession in Q2 and Q3.
Find Out More
Positive tariff news does little to dispel overall uncertainty
We've nudged up our world GDP growth forecasts for 2025 and 2026 by 0.1ppt to 2.4%, in part to reflect the temporary but substantial reduction in tariffs between the US and China.
Find Out More
The Eurozone economy should escape a recession this year
Our revamped modelling shows that a recession is not imminent for the Eurozone and the big four despite the extreme trade policy uncertainty.
Find Out More
Tradable inflation expected to stay muted in 2025 in Australia
Discover how Australia's inflation eased in Q1 2025, driven by lower tradable inflation and global oil price declines. Stay informed on economic trends.
Find Out More