Despite some tentatively promising signs of revival, the British economy remains in a precarious position. Stagnating productivity, sluggish growth forecasts, and concerns over the UK’s waning competitiveness in innovation all point to a rocky road towards recovery.
Yet there is an anchor of hope amidst this fog of uncertainty: British manufacturing. When the Chancellor delivered the Autumn Budget, she declared: “If you build here, Britain will back you”’ – a rallying cry to encourage growth across all industries, but one that carried a particular resonance in the UK’s often-maligned manufacturing sector. Now, that promise must be met with action.
There is a tired notion that ‘nothing is made in the UK anymore’, a view rooted in nostalgia, a nod to the perceived decline since the UK’s industrial heyday. The reality however is that Britain can boast significant capabilities in manufacturing with a global relevance that has scarcely been more compelling. For example, the UK has the world’s second-largest aerospace industry and remains a major centre for engine manufacturing, home to global leaders such as Rolls-Royce and BAE Systems.
So while the UK has been knocked down the rankings due to explosive output growth in China, India and Mexico (as well as being hamstrung by leaving the EU) the sector continues to innovate, export, climbing to 11th in global manufacturing rankings this year, with output valued at $279bn.
Far from being a relic of the past, manufacturing is one of our most dynamic and export-oriented sectors – and it holds a key to unlocking a new era of sustainable UK prosperity.
The strength of the UK start-up manufacturing sector
You might say the UK’s industrial identity has successfully pivoted. While it was once defined by major heavy industries such as textiles, shipbuilding or mass market automobiles, today its strength lies in world-class capabilities in sectors such as aerospace and defence, automotive, pharmaceuticals, and advanced materials. Moreover, these high-value, high-tech sectors are represented in pockets of excellence across the country.
This strength is increasingly visible in the UK start-up scene, where a new generation of fast-growth companies is punching well above its weight. On the factory floor, these manufacturers are demonstrating British excellence through companies like Unum Aircraft Seating in West Sussex, which designs and manufactures sustainable and high-comfort business class seats. By focusing on smart modular designs and sustainable materials, they are redefining passenger comfort and taking on established global monopolies in aviation interiors.
Similarly, Interpac in Herefordshire is addressing the environmental footprint of the global supply chain by tackling the high-energy consumption of packaging. They have developed a novel and agile manufacturing technology that produces corrugated cardboard with a fraction of the energy and water used in traditional methods. In Yorkshire, Wayland Additive is leading the field of advanced metal 3D printing. By unlocking the usage of complex materials such as utlra-hard steel, which were previously considered unprintable, they are leading the way for sectors from power generation to aerospace to build components that are lighter, stronger, and more efficient than ever before. Even in the consumer space, companies like Something & Nothing, based in London, are blending botanical innovation with manufacturing precision to break into the global beverage market.
Perhaps one of the most compelling examples of UK start-ups punching above their weight can be found at Blu Wireless, the Bristol-based silicon IP company developing and manufacturing low-cost 60GHz WiGig technologies. This frequency band is vital for the rapidly growing 5G and 4G backhaul markets, yet the technical barriers to entry are immense. While massive multinational conglomerates have struggled to master this complexity, this UK-based startup succeeded. Their technology is now deployed globally, from Japan’s high-speed rail networks to San Francisco commuter trains. By possessing a combination of specialised skills found in only a handful of teams worldwide, this small company beat large global competitors.
These companies prove that British manufacturers can lead in the next generation of industrial technology.
Investing in innovation ecosystems
This excellence is rarely achieved in isolation. The UK’s manufacturing strength lies not only in its innovative companies but also in its clusters – regional ecosystems of expertise, capital, and talent that foster growth. Regions such as Yorkshire, the Midlands, and the North East are emerging as vibrant hubs where shared infrastructure and collaboration between academia and startups accelerate innovation. These clusters de-risk recruitment and attract the private investment necessary for scale.
A prime example is the Cambridge cluster, home to Dogtooth Technologies. They design and build semi-autonomous, smart robots for soft-fruit picking. Their robots feature high visual acuity and dexterity, allowing them to operate safely alongside human personnel in challenging environments. Currently deployed globally and at major UK sites such as Dyson Farming, Dogtooth is addressing an acute global labour shortage and improving crop yields through a sophisticated blend of vision technology and mechanical engineering.
Nurturing these ecosystems is crucial, and the government has correctly begun to address the persistent skills gap, which businesses frequently cite as a significant restriction on growth. We must continue to champion these regional powerhouses. It is time to move past the outdated view of UK manufacturing as a relic of the industrial past and instead treat it as the high-stakes, high-reward sector it is today.
To truly benefit from this sector, we must recognise that the factory of today no longer looks like a traditional assembly line. The future of British manufacturing is not about rescuing a declining industry; it is about powering a growth engine that already exists. By aligning our investment strategies with the ingenuity found in our regional clusters, the UK can become a global powerhouse of advanced production. If we continue to back those who build here, this engine could drive our national prosperity for decades to come.
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