Consulting Report
15 Apr 2024

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.

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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

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