UK manufacturing output saw a significant boost of £21bn in 2025, even as the workforce shrank by over 36,000 and the number of manufacturers dropped by 2,500, according to an analysis of ONS data by FourJaw Manufacturing Analytics.
This past year marked the fifth straight year of growth in both output and productivity for the UK manufacturing sector. In fact, the total value of factory production was up 27.8% (£55bn) compared to 2020.
Factory output climbed by 3.4%, reaching nearly £639bn in 2025, driven by substantial gains in output and productivity across several key industries. The most notable increases came from aerospace (£6.7bn), chemical and pharmaceutical (£4.2bn), metal and machinery (£2.6bn), and computers and electrical products (£1.9bn) manufacturing.
When adjusted for inflation, FourJaw estimates that UK manufacturing productivity rose by 1.4% (£8.9bn) in 2025 compared to 2024. Additionally, the average output per manufacturing employee increased by 2.9% (£7,000) in real terms year over year.
Food price inflation, which hit 4.7% in August, pushed the value of food production up to £109bn in 2025. However, in real terms, this still represented a 1% (£1.1bn) decline from the previous year.
On the flip side, automotive manufacturing, which includes motor vehicles and trailers, saw a decline of nearly £5.4bn (7%) in 2025. This sector faced challenges from weaker domestic demand, export tariffs, trade uncertainties, and disruptions caused by a significant cyberattack.
Chris Iveson, CEO of FourJaw Manufacturing Analytics, commented: “UK manufacturing is demonstrating that resilience and innovation are key to success. Achieving an additional £21bn in output is an incredible feat given the current workforce challenges, highlighting a sector that is effectively embracing continuous improvement and productivity-enhancing technology. The resurgence of UK manufacturing is truly remarkable.”
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