The sector improves output and productivity for the fifth consecutive year despite fewer workers
The value of UK manufacturing output increased by £21bn in 2025, despite a workforce reduction of over 36,000 people and 2,500 fewer manufacturers, according to an analysis of ONS data by FourJaw Manufacturing Analytics.
2025 marked the fifth consecutive year of output and productivity growth for UK manufacturing. Last year, the total value of factory production was 27.8% (£55bn) higher in real terms than 2020.
Factory output increased by 3.4% to nearly £639bn in 2025, driven by multi-billion-pound output and productivity gains in aerospace (£6.7bn), chemical and pharmaceutical (£4.2bn), metal and machinery (£2.6bn), and computers and electrical products (£1.9bn) production.
After adjusting for inflation, FourJaw estimates UK manufacturing productivity was 1.4% (£8.9bn) higher in 2025 than 2024. Average output per manufacturing employee increased by 2.9% (£7,000) in real terms year-on-year.
Food price inflation, which reached 4.7% in August, increased the value of food production to £109bn in 2025. However, this was a real-terms decline of 1% (£1.1bn) from the previous year.
Automotive manufacturing, including motor vehicles and trailers, declined by nearly £5.4bn (7%) in 2025. The industry faced challenges including reduced domestic demand, export tariffs, trade uncertainty and disruption from a major cyberattack.
Chris Iveson, CEO at FourJaw Manufacturing Analytics, said: “UK manufacturing is proving that resilience and innovation are winning the day. To deliver £21bn more in output is a phenomenal achievement given current workforce challenges and points to a sector successfully embracing continuous improvement and productivity-enhancing technology. The resurgence of UK manufacturing is down to smart, efficient production and maximising the output of every machine and every employee.”
