Ungated Post | 04 May 2018

The true impact of UK manufacturing

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:

Americas
Diantha Redd
+1 (646) 503 3052
Email

Asia Pacific
Peter Suomi
+65 6850 0110
Email

EMEA
Aoife Pearson
+44 (0)203 910 8054
Email

Related Services

Post

Energy Transitions in Western and Central Africa: A focus on Nigeria, Ghana, Senegal, Equatorial Guinea and Mauritania

The global energy transition involves the sustained displacement of fossil fuels by renewable energy and complementary technologies to reduce carbon intensity. It is, however, imperative to consider such shifts within the distinct developmental contexts of countries to ensure energy transitions are socially inclusive and just. This latest report by our Africa consulting team examines how energy transitions are likely to unfold in Nigeria, Ghana, Senegal, Equatorial Guinea, and Mauritania.

Find Out More

Post

Becoming More Efficient – How finance and IT are leading the way

Oxford Economics and SAP Concur surveyed 1,000 finance and IT executives about how they are making their functions more efficient.

Find Out More

Post

Delivering Economic Value – DoorDash 2021 US Economic Impact Report

A US study demonstrating how DoorDash empowers local economies by creating and supporting impact across the three sides of their marketplace–Dashers, merchants and consumers.

Find Out More