Output from the UK\u2019s manufacturing sector surged to \u00a3224billion last year according to the Office for National Statistics (ONS).<\/p>\n
While the economy as a whole ekes out only marginal growth, a new report published today by the industry trade association Make UK shows goods production is booming.<\/p>\n
Back in the Seventies, British-made cars, aircraft, foods and chemicals accounted for a quarter of GDP. The shift towards services since has seen this share fall below ten percent.<\/p>\n
Make UK estimates that sticking to the Government\u2019s manufacturing target of 15 percent of GDP would add an additional \u00a3142billion to the UK economy \u2013 far more than any post-Brexit free trade agreement currently in the works.<\/p>\n
The sector\u2019s strong performance has meant the UK has now overtaken France as the world\u2019s eighth-largest manufacturer, according to the latest available international figures.<\/p>\n
READ MORE: <\/strong> Huge boost for UK economy as Rishi Sunak signs deal with Singapore<\/strong><\/p>\n Back in 2021, UK manufacturing output came to $272billion (\u00a3218billion) \u2013 behind Italy\u2019s $314billion (\u00a3252billion) but ahead of France\u2019s $262billion (\u00a3210billion).<\/p>\n Make UK cautions, however, that while the rankings climb is \u201cencouraging\u201d, this is only the third year in the past two decades that the UK has been ranked above its neighbour across the Channel.<\/p>\n In a global context, China retained its manufacturing hegemony with output worth $4.9trillion (\u00a33.9billion), followed by the US, Japan, and Germany.<\/p>\n Don’t miss… <\/strong> We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info<\/p>\n The trade body \u2013 which represents 20,000 manufacturers across the country \u2013 claims the sector now supports 2.6 million jobs.<\/p>\n On average, these jobs are paid nine percent better than average \u2013 with mean annual gross pay of \u00a336,488 compared to \u00a333,402 across the whole economy, or \u00a332,676 for the services industry.<\/p>\n Exporters are also profiting. Total UK exports shot up by 19.5 percent over the year to June, while imports rose by 11.7 percent. As a result, the total value of annual trade is now at a record high of just under \u00a31.75trillion.<\/p>\n Last month\u2019s relatively strong 0.2 percent economic growth figures for the second quarter of the year were in large part attributed to the car industry. According to the Society of Motor Manufacturers and Traders (SMMT), the total number of cars built in the UK is on course to be 100,000 units higher this year than it was in 2022.<\/p>\n The latest figures from the Department for Business and Trade, however, show that cars are only the UK\u2019s third most valuable category of exports.<\/p>\n Top of the list comes \u201cunspecified goods\u201d, described as including \u201cnon-monetary gold and other precious metals (silver, platinum, palladium), parcel post, low-value trade, coins\u201d as well as, crucially, defence equipment.<\/p>\n The UK exported \u00a343.7billion worth of these items in the 12 months to June, followed by \u00a332.2billion of mechanical power generators and \u00a328.8billion in cars.<\/p>\n To bring the UK more in line with other country\u2019s versions of an \u201cindustrial strategy\u201d, Make UK renewed is call on the Government for a long-term plan to turn manufacturing\u2019s 15-percent-of-GDP ambition into reality, in the hopes of one day edging past Italy to seventh place globally.<\/p>\n
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