The size of the UK’s manufacturing sector is closely monitored in official statistics which track the sector’s direct contribution to the economy, for example in terms of GDP and employment. But such measures do not reflect the full impact of manufacturing on the UK economy, which extends far beyond these headline estimates.
The Manufacturing Technologies Association (MTA) asked Oxford Economics to investigate this, and to estimate the true impact of UK manufacturing. This request follows in the footsteps of the government’s 2016 Manufacturing Metrics Review, which highlighted the need for a more comprehensive approach to measuring manufacturing activity.
In response, this report uses an economic impact assessment to quantify the full contribution that the manufacturing sector makes to employment and GDP. Crucially, this includes the wider economic “footprint” supported by the industry’s domestic supply chains, together with the wage-financed consumption of its workers and those in its supply chain.
Bringing together these wider impacts of manufacturing, we estimate that the total impact of manufacturing on UK GDP was £446 billion in 2016. For every £1 million that the manufacturing sector contributes to UK GDP itself, a further £1.5 million is supported across the wider economy through indirect and induced multiplier effects. On the same basis, manufacturing supported a total of 7.4 million jobs in 2016. For each job in the manufacturing sector itself, a further 1.8 are supported in other sectors of the UK economy.
Read the full report
Oxford Economics’ team is expert at applying advanced economic tools that provide valuable insights into today’s most pressing business, financial, and policy issues.
To find out more about our capabilities, contact:
+1 (646) 503 3052
+65 6850 0110
+44 (0)203 910 8054
Enabling North American Graphite Growth
This report explores the global graphite market, rationales for trade action on Chinese graphite, and the history of Section 301 tariffs on US imports of graphite anode material from China.Find Out More
Economic impacts of Pitch Perfect: Bumper in Berlin in Germany
This study, commissioned by the Motion Picture Association (MPA), focuses on the show “Pitch Perfect: Bumper in Berlin”, and analyses the production’s total economic impacts in Germany in 2022, when the series was filmed. The study also considers the wider impact on Germany’s economy.Find Out More
The Impact of the Longevity Workforce on the Resilience of Spain’s Economy
This study investigates how Spain’s ageing workforce should be seen as an antidote to financial shocks and an ingredient for future economic success.Find Out More