The UK manufacturing sector has edged up one place in the global league, rising to 11th in the latest world rankings, according to new figures released by Make UK.

Key findings:

  • Latest global data places the UK 11th in the world rankings
  • United States remains the biggest single export market but seven of the top ten export markets for UK goods are in the EU
  • Food and Drink and Transport the largest manufacturing sub sectors
  • North West the biggest manufacturing area by output while Wales has the highest share of manufacturing as part of its economy
  • Average manufacturing salary increases by almost 7% and now significantly higher than services and the economy overall

The data, contained in the annual Manufacturing – The Facts report, shows UK manufacturing output was worth a revised £206.6bn in 2023. This puts the UK just behind Brazil, which returned to the top ten with £214.8bn of output for the first time since 2012.

China remains the dominant manufacturing nation with output valued at £3.5tn, followed by the United States at £2.1tn and Japan at £622.2bn. Germany retains its position as Europe’s manufacturing powerhouse, ranked fourth globally with £620.7bn. Italy and France hold eighth and ninth place, with output of £261.5n and £219.2bn respectively.

Commenting on the findings, Dr Seamus Nevin, Chief Economist at Make UK, said the results highlight both the sector’s importance and the shifting dynamics of global trade: “These figures reflect not just the importance of manufacturing to the economy but factors and trends which are redrawing the contours of the global economy at an accelerating rate. These trends reinforce why it was vital to introduce a long-term industrial strategy to take competitive advantage of our undoubted strengths.”

The United States continues to be the largest single market for UK goods, worth £59.3bn in 2024. Germany (£32.1bn) and The Netherlands (£27.9bn) follow, though trade with the latter may be artificially inflated due to routing through Rotterdam. Ireland is the UK’s fourth largest export destination at £23.9bn. Seven of the UK’s top ten export markets are in the EU, collectively worth around £143bn – more than twice the value of exports to the US and nearly nine times the level of exports to China. Make UK said this underlines the EU’s enduring importance and urged the government to continue reducing barriers to trade with its largest market.

Food and drink remains the UK’s biggest manufacturing subsector, accounting for 18% of gross value added. Transport – driven by aerospace and automotive – contributes 17%, while chemicals and pharmaceuticals make up 13%. Together, the transport, chemicals and pharmaceuticals industries account for 70% of manufacturing R&D investment, highlighting their strategic significance.

The North West remains the UK’s largest manufacturing region, generating £29.5bn of output and employing 335,000 people. Manufacturing represents nearly 15% of the region’s economy and almost 10% of its workforce. Wales holds the highest manufacturing share relative to its economy, with the sector accounting for 15.6% of Welsh output, compared with the UK average of just under 10%.

Manufacturing also continues to outperform the wider economy in wages. The average salary in the sector rose nearly 7% to £41,220 – significantly higher than the economy-wide average of £38,224 and the services sector average of £37,559. The sector accounts for 42% of UK exports, 48% of business R&D, and 17% of business investment, reinforcing its pivotal role in the economy.

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