A new report, 'The 2017 Manufacturing Fact Card', produced by the manufacturers' organisation EEF in conjunction with Santander, now ranks Britain as the eighth largest industrial nation – up from ninth last year – with an annual output currently worth $249 billion.

Manufacturing: 'Britain's link to the world'

“In the post-Brexit world, manufacturing will increasingly provide Britain’s link to the world, currently generating 44 per cent of total UK exports,” says the report.“The sector is also vital for the nation’s future source of income, undertaking some 70 per cent of total R&D by Britain’s businesses. Data around employment is equally impressive, with 2.6 million people working within the manufacturing sector across the country.”The report says the largest individual sector is food and drink (16 per cent) while the chemicals and pharmaceuticals and transport sectors account for 14 per cent of output each. These two sectors also head up the manufacturing innovation league table, with ONS figures revealing that pharmaceuticals accounts for 34.4 per cent of UK innovation, and transport 33 per cent.“As a sector, the manufacturing good news story continues into comparable pay rates, offering higher wages than other sectors with highly paid, highly skilled jobs,” says the report, adding that average earnings have increased from £31,489 to £32,047 this year, well above the take-home totals from services and £3,748 higher than the whole economy average pay.

North West England is regional manufacturing powerhouse

NW England remains the biggest regional powerhouse for manufacturing, with an output exceeding £24 billion. Behind it comes the West Midlands, with £17.5 billions-worth of output, and the East Midlands (£15.9 billion), much of the strength coming from the aerospace and automotive sectors.“A reminder of the post-Brexit challenge is ever present as EU markets still dominate for exports, accounting for 48 per cent of manufactured exports in the second quarter of 2017. The UK’s largest single export destination is the United States, followed by Germany and France,” says the report.

Manufacturing contributes to vital exports and innovation 

Lee Hopley, chief economist of EEF, commented, “With government facing lots of major policy decisions on everything from our future trading relationship with Europe and the rest of the world to the detail of a long-term industrial strategy it is vital that they have the right industry facts at their fingertips. Our latest annual fact card reveals that manufacturing’s share of the economy remains stable at 10 per cent, but the sector makes a much larger contribution to vital exports and innovation.“With the focus on industrial strategy, this year we highlight the varying strengths we see across manufacturing sub-sectors, from the strong R&D performance of pharmaceuticals and transport to the high export intensity of machinery and chemicals.”Paul Brooks, head of manufacturing at Santander Corporate & Commercial, added, “Manufacturing remains a key part of the UK economy and it is really encouraging to see that the UK is now the eighth largest manufacturer by output in the world, and that the majority of UK adults believe we should be aiming to be in the top five.“With strong manufacturing figures reported from across the country, it is crucial that we continue to support manufacturers in all regions of the UK. Despite uncertainty around Brexit, manufacturers are seizing opportunities to increase their now more competitive exports, with the sector accounting for 44 per cent of UK exports. With the top 10 export destinations featuring markets both within and outside of the EU, Santander is committed to helping manufacturers reach new markets.”For related news and features, visit our Enterprise section.Access hundreds of global services and suppliers in our Online Directory  Get access to our free Global Mobility Toolkit

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