#UK – Ralph Hosier Technoblog

I’m tired of people telling me my industry doesn’t exist.
I’m tired of wingers telling me we don’t make anything here any more.
Well, things may not be as good as we want them to be, but there’s a lot of good people in industry working hard to make sure we carry on designing, developing and making great things in the UK.
Remember that the United Kingdom has a rich history of manufacturing, contributing significantly to the global economy, and despite all the negativity and all the many challenges in recent decades, the UK remains a notable producer of various goods, with the manufacturing sector playing a crucial role in employment and economic output.
So here’s a few figures for you:

Current State of UK Manufacturing

As of 2024, the UK manufacturing sector contributes approximately £217 billion to the national economy, accounting for about 8.8% of the total economic output. This sector supports around 2.6 million jobs, representing 7% of the UK’s total employment.

Key Manufacturing Industries

The UK’s manufacturing landscape is diverse, encompassing several key industries:

Automotive Industry (my industry): The UK automotive sector is a significant contributor, with a turnover of £93 billion and a value-added contribution of £22 billion. In 2024, over 426,000 cars were built in the UK, with exports constituting 74.5% of total production.
Food and Beverage Manufacturing: This remains the largest manufacturing division, representing 20.8% of total manufacturers’ sales in 2023. The sector has shown resilience and growth, contributing significantly to the economy.
Pharmaceuticals: The UK is home to a robust pharmaceutical industry, known for innovation and substantial contributions to both domestic and international markets.
Aerospace: The aerospace sector is a leader in advanced engineering and technology, exporting a significant portion of its production.
Chemical Industry: The chemical sector produces a wide range of products, from basic chemicals to specialized compounds, serving various industries.

Employment in Manufacturing

Sadly employment in the UK manufacturing sector has seen a decline over the past few decades. In 1981, the sector employed over 5 million people, but by 2018, this number had more than halved to around 2.6 million. This decline is attributed to factors such as automation (which is really stepping up now), globalization, and shifts towards a ‘service-based economy’, what ever that means.

But despite the reduction in workforce numbers, the manufacturing sector remains a really important employer. And don’t forget that it also supports numerous jobs in associated industries, including supply chains, logistics, and services.

Challenges and Opportunities

The UK manufacturing sector faces several challenges:

Global Competition: Emerging economies with lower production costs due to lower wages, lower land costs, lower energy costs and heavy government subsidies create unfair competition to UK manufacturers.
Technological Advancements: The need to adopt new technologies requires investment and upskilling of the workforce, a lot of factories need completely refitting, or closing and building new ones.
Brexit: Changes in trade agreements have impacted supply chains and market access, it’s certainly hit my company significantly.

However, there are also opportunities:

Innovation: Investing in research and development can lead to high-value products and services, and we’re good at that here.
Sustainability: Adopting green technologies can open new markets and meet regulatory requirements. If done properly it can also reduce costs and add to profitability.
Reshoring: Bringing production back to the UK can reduce dependency on international supply chains. Better for stability, better for emissions, better for UK jobs.

So the UK manufacturing sector continues to be a vital part of the economy, producing a wide range of products and providing employment to millions. While it faces challenges, there are significant opportunities for growth and innovation. By leveraging its strengths and addressing its weaknesses, the UK can maintain and enhance its position in the global manufacturing landscape.

And here’s a bit of context for you. By contrast the biggest employment sector in the UK is government, education and health.

As of 2021, the distribution of employment across various sectors in the United Kingdom is as follows:

Sector	Percentage of Total Employment
Public administration (government), education (state schools), and health (NHS)	32.2%
Banking and finance
Distribution, hotels, and restaurants	16.4%
Transport and communication	9.7%
Manufacturing	8.5%
Construction	6.5%
Other services	5.8%
Energy and water	1.8%
Agriculture, forestry, and fishing	0.8%

I find it interesting how these figures highlight the prominence of the public administration, education, and health sector, which employs nearly a third of the UK’s workforce. The banking and finance sector also plays a significant role, accounting for 18.3% of employment. In contrast, traditional sectors like agriculture and manufacturing employ smaller proportions of the workforce.

Anyway, back to manufacturing. Where does all the stuff go?
As of 2024, the United Kingdom’s top export commodities are:

Mechanical Power Generators (Intermediate): £36.1 billion
Cars: £34.4 billion
Medicinal and Pharmaceutical Products: £24.8 billion
Crude Oil: £17.6 billion
Aircraft: £12.6 billion
Refined Oil: £12.5 billion
Scientific Instruments (Capital): £11.7 billion
Unspecified Goods: £11.6 billion
Non-Ferrous Metals: £11.2 billion
General Industrial Machinery (Capital): £10.3 billion

I’m not sure what ‘unspecified goods are’ but these figures highlight the UK’s diverse export portfolio, spanning advanced machinery, automotive products, pharmaceuticals, and energy resources.

In the services sector, the top exports include:

Other Business Services: £172.0 billion
Financial Services: £96.6 billion
Travel Services: £62.8 billion
Telecoms, Computer, and Information Services: £38.7 billion
Transport Services: £31.3 billion

I still find it hard to think of ‘services’ as ‘industry’ but at the end of the day its all about earning money. These services underscore the UK’s strength in business consultancy, financial expertise, and information technology.

The United States remains the UK’s largest export partner, accounting for 13.7% of total exports, followed by Germany (7.7%) and the Netherlands (7.2%).

These statistics reflect the UK’s robust and varied export economy, with significant contributions from both goods and services sectors.

Here are the sources of that data:

Make UK

UK Manufacturing: The Facts 2024 – Make UK

July 29, 2024 — UK Manufacturing The Facts 2024. 29.07.2024. Make UK’s annual analysis of the latest manufacturing facts and statistics is out now! The sector contributed £217bn in output to the economy last year, supporting 2.6m jobs. Firms are investing more too than in 2023, with £38.8bn worth of investment taking place.

House of Commons Library

Manufacturing: Key Economic Indicators – House of Commons Library

Manufacturing: Key Economic Indicators (74 KB , PDF) Manufacturing is one of the production industries, which also include mining, electricity, water & waste management and oil & gas extraction. In April – June 2024, the manufacturing sector accounted for 8.8% of total UK economic output (Gross Value Added) and 7.0% of employment.

SMMT

SMMT Motor Industry Facts 2024

SMMT Motor Industry Facts 2024. SMMT Motor Industry Facts. The automotive industry is a vital part of the UK economy and integral to supporting the delivery of the agendas for levelling up, net zero, advancing global Britain, and the plan for growth. Automotive-related manufacturing contributes £93 billion turnover and £22 billion value added …

SMMT