July 30, 2024 – London, UK: The UK manufacturing sector has dropped out of the top 10 world rankings, falling to 12th according to the latest official figures published by Make UK. The data, contained in the annual report ‘Manufacturing – The Facts,’ shows that in 2022, the UK’s manufacturing output was valued at $259 billion. This marks a decline from previous rankings, placing the UK behind countries such as Mexico ($316 billion) and Russia ($287 billion).
Global Manufacturing Rankings
The latest figures highlight significant shifts in global manufacturing dynamics:
China – $5.06 trillion
United States – $2.69 trillion
Japan – $850 billion
Germany – $751 billion
India – $516 billion
South Korea – $507 billion
Mexico – $316 billion
Russia – $287 billion
Italy – $283 billion
France – $265 billion
Taiwan – Slightly ahead of the UK due to semiconductor manufacturing
UK – $259 billion
Key Trends and Factors
Mexico’s manufacturing sector has surged due to a strong industrial base and investments countering tariffs during the Trump presidency.
Russia has increased defense production, now accounting for 6% of GDP, boosting its global ranking.
Taiwan’s dominance in semiconductor manufacturing has also edged it ahead of the UK.
UK Manufacturing Highlights
Top Export Markets: The United States remains the dominant export market for UK goods at £60.1 billion, followed by Germany (£33 billion) and the Netherlands (£31 billion).
Sector Contribution: The food and drink sector is the largest contributor to manufacturing Gross Value Added (GVA) at 21%, followed by the transport sector (15%).
Regional Output: The North West is the biggest manufacturing area in the UK, with an output of £29.5 billion, employing 330,000 people. The East Midlands has the highest share of manufacturing in its regional economy at 15.9%.
Addressing the Skills Gap and Strategic Needs
Verity Davidge, Director of Policy at Make UK, emphasized the need for a long-term industrial strategy to leverage the UK’s strengths and regain its competitive edge. The data suggests that countries with established industrial strategies are benefiting from higher economic output. A report by Make UK indicated that eight in ten manufacturers feel at a competitive disadvantage without a similar strategy.
“There is no getting away from the fact it’s deeply disappointing to see the UK drop out of the world’s top ten manufacturing nations for the first time,” Davidge said. “However, this isn’t a reflection of any decline in UK industry but specific factors and trends which are redrawing the contours of the global economy.”
Economic and Employment Insights
Manufacturing Salaries: The average salary in the manufacturing sector is £38,769, which is 10% higher than the average salary in the overall economy (£35,404). This dispels the myth that manufacturing jobs are poorly paid.
Trade Importance: Six of the top ten export markets for the UK are in the EU, highlighting the need for smoother trade relations with the bloc.
The latest rankings and data underline the urgent need for the UK to develop a cohesive industrial strategy to navigate global economic trends and reinforce its manufacturing sector’s position on the world stage.