The UK has slipped out of the top ten global manufacturing nations for the first time, according to Make UK. Key points include:
- The UK ranks 12th in global manufacturing, down from 8th last year.
- Mexico and Russia have overtaken the UK, ranking 7th and 8th, respectively.
- China and the US remain the leading manufacturing economies.
- The UK’s manufacturing sector is valued at £217 billion, employing 2.6 million people.
- Calls for a long-term industrial strategy to boost UK manufacturing have intensified.
According to Make UK, the UK now ranks 12th among global manufacturing nations, a significant drop from its previous position of eighth. This shift has been attributed to a redrawing of the contours of the global economy, which has seen other nations rise in prominence over Britain.
Mexico has climbed to the seventh position, driven by increased investment from China, while Russia now holds the eighth position, bolstered by a surge in defence production that accounts for 6% of its GDP. Meanwhile, China and the United States continue to dominate as the first and second leading manufacturing economies, respectively.
Despite the sector contributing £217 billion to the UK’s national output and providing approximately 2.6 million jobs, Make UK has stressed the urgent need for a long-term industrial strategy to revitalise the industry. Verity Davidge, Make UK’s director of policy, lamented the country’s slip but pointed out that it reflects broader global economic trends rather than a decline in domestic industry performance.
Northwest England remains the UK’s largest manufacturing hub, employing 330,000 people and generating £29.5 billion in output. However, sector leaders have been critical of the previous government’s inconsistent policymaking. Stephen Phipson, CEO of Make UK, described the lack of a cohesive industrial strategy as Britain’s Achilles heel, advocating for a comprehensive plan to elevate manufacturing to 15% of the national economy.
Phipson emphasised that major economies like Germany, China, and the US benefit from long-term manufacturing strategies, which underscore the significance of a solid industrial base for broader economic success. He has urged the UK to adopt a consistent, independently monitored plan with cross-party consensus to prevent the negative impacts of erratic policy changes. Paul Drechsler, former president of the CBI, echoed these concerns, identifying political U-turns, inconsistent funding, and the absence of a stable industrial strategy as significant barriers to the sector’s growth.
The UK’s drop in global manufacturing rankings underscores the urgent need for a consistent and long-term industrial strategy.
