While the economy grows just little, a new report released today by the industry trade organisation Make UK reveals that goods production is booming.
According to the Office for National Statistics, the UK manufacturing sector increased to £224 billion last year.
In the 1970s, British-made automobiles, aircraft, foods, and chemicals contributed for a quarter of GDP. Since then, the trend toward services has reduced this share to less than 10%.
According to UK estimates, adhering to the Government’s manufacturing aim of 15% of GDP would add £142 billion to the UK economy – considerably more than any post-Brexit free trade agreement presently in the works.
Because to the sector’s remarkable success, the UK has surpassed France to become the world’s eighth-largest manufacturer.
In 2021, the United Kingdom’s industrial production was $272 billion (£218 billion), trailing Italy’s $314 billion (£252 billion) but ahead of France’s $262 billion (£210 billion).
However, Make UK cautions that, while the rise in rankings is “encouraging,” it is only the third time in the last two decades that the UK has been ranked higher than its neighbours across the Channel.
Globally, China maintained its manufacturing monopoly, with output of $4.9 trillion (£3.9 billion), followed by the United States, Japan, and Germany.
According to the trade association, which represents 20,000 manufacturers across the country, the sector now employs 2.6 million people.
These jobs pay nine percent more than the norm, with a mean annual gross income of £36,488 compared to £33,402 for the entire economy or £32,676 for the services industry.
Exporters benefit as well. Over the year to June, total UK exports increased by 19.5 percent, while imports increased by 11.7 percent. As a result, the total value of annual trade has reached a new high of just less than £1.75 trillion.
However, according to the most recent Department for Business and Trade data, vehicles are just the UK’s third most lucrative export category.
The list begins with “unspecified goods,” which are defined as “non-monetary gold and other precious metals (silver, platinum, palladium), parcel post, low-value trade, coins,” as well as, critically, defence equipment.