New analysis from FourJaw Manufacturing Analytics has revealed that the UK manufacturing sector has delivered sustained growth in both output and productivity over the past five years, challenging long-standing narratives of industrial decline.
Published to coincide with National Productivity Week, the data shows that UK manufacturing output in 2025 was 6% higher than in 2020 in real terms, outperforming major economies including the United States (+4%) and Japan (+2%), while Germany recorded a 6% decline.
Productivity gains have been even more pronounced. Real output per worker in the UK increased by 10% over the same period, placing it among the stronger performers globally, behind only South Korea, Spain and India.
The findings come despite a 4% reduction in the UK’s manufacturing workforce, suggesting that companies are increasingly turning to automation, robotics and data-driven processes to improve efficiency. In 2025, UK factories generated £253,000 in output per worker—behind only the United States and France among leading manufacturing economies.
“The narrative of decline in UK manufacturing should be put to bed. Yes, there are challenges, and yes, the number of manufacturers in the UK has declined over the years, but our analysis shows the sector has rebounded post-pandemic and is quietly outperforming many of its peers in output and productivity gains.”
– Chris Iveson, CEO at FourJaw Manufacturing Analytics.
He added that while the operating environment remains difficult, there are clear signs of renewed innovation across the sector, particularly in the adoption of productivity-enhancing technologies.
Together, the findings suggest a sector that, while facing ongoing challenges, is quietly improving its competitiveness on the global stage.
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