UK manufacturing exceeds pre-pandemic levels

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Manufacturing in all regions of the UK surged past levels seen prior to the COVID-19 pandemic according to a new report by Make UK and BDO.

The new Regional Manufacturing Outlook report is based on various official data through to December 31, 2023, which is the latest available. It seeks to shed light on the UK manufacturing sector in aspects like employment, output and exports.

In terms of output, the report reveals a recovery across the UK compared to 2019 levels. In the South West, it grew by 27% – the most of any region. This was followed by the East of England and the North West with 21% and 20%, respectively. The manufacturing rebound is also good news for firms like Morris Lubricants and Kluber, which sell the advanced gear oil and metalworking fluids for equipment.

Fhaheen Khan, a senior economist at Make UK, welcomed the news that the malaise that followed the pandemic seems to have passed. He added a note of caution:

“However, the data also signals an emerging divide between regions that host high-investment subsectors and those that don’t. As Local Growth Plans evolve – many with Advanced Manufacturing at their core – the Government must ensure that investment and opportunity are spread evenly.”

The disparity is thought to be due to regional strengths in various industries. For example, growing spending throughout Europe and increased aircraft orders have driven the defence and aerospace industries in particular. These account for a large portion of the output in the South West (25.8%) and North West (23.5%).

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