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
UK: Key themes 2026 – Sluggish growth and fiscal worries
We think 2026 will be another challenging year for the UK economy – our GDP growth forecast of 1% is at the bottom of the consensus. Four themes will be key to the outlook, in our view.
Find Out More
Nordics: Key themes 2026 – Bright spots emerging
We forecast growth across the Nordic economies to diverge somewhat next year but share the same underlying drivers.
Find Out More
Little by little—Manchester is closing the output gap
Greater Manchester has led the UK economy since 2008, driven by knowledge jobs, transport upgrades, and housing growth—but can prosperity reach its outer districts?
Find Out More
Asia’s cities are reshaping the world
From Seoul to Delhi and Shanghai, Asia’s urban centres are rapidly overtaking global rivals as living standards soar. What will this mean for the balance of global economic power?
Find Out More
