Seven of top ten export markets now in the EU
Key findings:
- Latest global data places the UK 11th in the world rankings
- United States remains the biggest single export market but
seven of the top ten export markets for UK goods are in the EU
- Food and Drink and Transport the largest manufacturing sub
sectors
- North West the biggest manufacturing area by output while
Wales has the highest share of manufacturing as part of its
economy
- Average manufacturing salary increases by almost 7% and now
significantly higher than services and the economy overall
The UK's manufacturing sector has improved one place to 11th in
the latest world rankings according to the latest official
figures available published by Make UK today. This comes after
the sector dropped out of the top ten for the first time in the
previous data.
The figures are contained in the latest annual
‘Manufacturing – The Facts' which contains a
wide variety of data about the vital contribution of
manufacturing to the UK economy including exports, sectoral
breakdown, how UK industry compares to other nations, jobs and
salary levels.
The data shows that in 2023 (the latest year for which global
comparisons are available) UK manufacturing output was worth a
revised $279bn (1). This is one place behind Brazil ($290bn)
which has moved back in to the top ten for the first time since
2012.
China is by far the largest manufacturing nation with output
worth $4.8trn, followed by the United States $2.8trn and Japan
$840bn. Germany remains the biggest manufacturing nation in
Europe by some distance ($838bn) and retains its position as the
world's fourth largest manufacturing nation. It is followed by
South Korea and India who have swapped places in fifth and sixth
respectively, and Mexico.
Italy and France are respectively the second and third largest
manufacturing nations in Europe at 8th ($353bn) and
9th globally ($296bn).
Dr Seamus Nevin, Chief Economist at Make UK, said:
“These figures reflect not just the importance of manufacturing
to the economy but factors and trends which are redrawing the
contours of the global economy at an accelerating rate. These
trends reinforce why it was vital to introduce a long-term
industrial strategy to take competitive advantage of our
undoubted strengths. This will ensure the UK retains its place at
the top table of advanced manufacturing nations where it has many
world class sectors.”
The importance of manufacturing to the UK economy overall is
reinforced by latest data showing it accounts for more than four
tenths of exports (42%), almost half of business R&D (48%)
and almost a fifth of business investment (17%) (2).
Furthermore, analysis continues to dispel the myth that
manufacturing jobs are badly paid when, in contrast, the average
manufacturing salary at £41,220 is significantly higher than the
average of the economy overall at £38,224 and services £37,559
(3).
In terms of exports, the United States remains the single largest
market for UK goods worth £59.3bn in 2024 (4). Germany is the
second highest destination (£32.1.bn) while The Netherlands is
third (£27.9bn). However, Make UK cautioned that trade with The
Netherlands could be inflated artificially by goods being routed
through Rotterdam for onward travel to other destinations.
Ireland is the fourth largest export market (£23.9bn)
Seven of the top ten export markets are now in the EU, worth
approximately £143bn. This is more than twice the level of
exports to the US and around nine times the amount to China
(£16.7bn). According to Make UK, this highlights the continued
importance of the EU for UK goods and the need for the Government
to continue to smooth out trade barriers with what remains
overwhelmingly the UK's dominant global export market.
By sector, food and drink is the biggest individual contributor
to manufacturing Gross Value Added (18%), followed by the
Transport sector (largely aerospace and automotive) at 17% and
Chemicals and Pharmaceuticals (13%). The importance of the
Transport, Chemicals and Pharmaceuticals sectors is also
illustrated by the fact they account collectively for 70% of
manufacturing R&D. (5)
The North West remains the biggest manufacturing area of the UK,
worth £29.5bn in output and employing 335,000 people (6). The
sector accounts for almost 15% of the North West economic output
overall and almost 10% of regional employment. Wales has the
highest share of manufacturing of any area of the UK, accounting
for almost 16% (15.6%) of the Welsh economy. This compares to
just under 10% national average.
ENDS
Notes to Editors on data sources:
- UNCTAD 2023
- Latest ONS data from 2024 and 2025
- ONS – ASHE 2024
- UK Trade ONS 2024
- ONS 2025
- ONS 2024
