While the broader narrative around UK manufacturing often focuses on challenges, our new whitepaper, From Legacy to Lighthouse: Implementing Manufacturing’s Digital Transformation, presents a refreshing counter-narrative: specific regions and sectors are not just surviving but thriving.
Our analysis shows that key areas of the UK have achieved real-term growth, defying national trends.
Regional Growth Engines
Four key regions have delivered real-terms growth in their manufacturing economies over the last decade, with the combined turnover of factories in the area growing faster than inflation. Crucially, each of these also achieved substantial productivity improvements ahead of inflation too:
- Yorkshire & Humber: Despite an 11% decrease in manufacturers, this region saw a 22% increase in manufacturing output turnover and a remarkable 15% rise in per-worker productivity, reaching £216,000 per employee.
- West Midlands: Even with a 19% reduction in manufacturers, turnover increased by 10% to £86.7 billion, and productivity grew by 9%, with output per employee hitting £276,000.
- Northern Ireland: Although a smaller manufacturing community, Northern Ireland delivered substantial growth, with a 32% real-term increase in turnover, a 16% increase in employment, and a 9% rise in productivity, reaching £208,000 per employee.
- Scotland: This region saw its manufacturing sector value increase by 31% between 2014 and 2024, alongside the biggest (25%) increase in per-worker productivity of any UK region, achieving £260,000 in output per employee.
Sectors Defying the Decline
Our report also identifies specific manufacturing sectors that have achieved real-terms growth, increasing their turnover faster than inflation:
- Non-metallic mineral product manufacturing (e.g. cement, glass, bricks) experienced a 28% increase in sales, accompanied by a 32% rise in per-worker productivity, despite a decline in employment.
- Wood & paper product manufacturers saw their combined turnover grow by 21%, with a 1% rise in per-worker productivity.
- Fabricated metal products (excluding machinery and equipment) experienced a 1% increase in value, achieved with a 3% smaller workforce, indicating a 5% improvement in productivity.
What links these success stories, whether regional or sectoral? Beyond just growing output, many also achieved substantial productivity improvements. This isn’t accidental. It reflects a growing trend among progressive manufacturers to embrace digital transformation, using technology to work smarter, not just harder.
Download our new whitepaper, From Legacy to Lighthouse: Implementing Manufacturing’s Digital Transformation, to delve deeper into the strategies driving growth in these vibrant manufacturing economies and understand the critical role digital transformation plays.