The UK has fallen out of the top ten manufacturing nations globally for the first time, according to a report by industry body Make UK.
This significant drop, attributed to a “redrawing of the contours” of the global economy, sees Britain placed 12th in the 2022 rankings, down from eighth in the previous year.
Make UK’s analysis highlights that Mexico and Russia have surpassed the UK, securing the seventh and eighth positions respectively. Mexico’s rise is driven by increased investment from China, while Russia’s surge is due to a boost in defence production, now accounting for 6% of its GDP. China and the United States maintain their positions as the first and second leading manufacturing economies.
The UK’s manufacturing sector, contributing £217 billion to the nation’s output and providing approximately 2.6 million jobs, is in need of a “long-term industrial strategy,” warns Make UK. Verity Davidge, the director of policy at Make UK, expressed disappointment at the UK’s slip but attributed it to global economic trends rather than a decline in domestic industry.
Northwest England remains the UK’s largest manufacturing hub, employing 330,000 people and generating £29.5 billion in output. Despite this, the sector has criticised the previous government for its inconsistent policymaking. Stephen Phipson, CEO of Make UK, has called the absence of a cohesive industrial strategy the country’s “Achilles heel,” advocating for a plan to elevate manufacturing to 15% of the national economy.
Phipson emphasised that major economies like Germany, China, and the US have long-term manufacturing strategies that underscore the critical role of industrial bases in their broader economic success. He urged the UK to adopt a consistent, independently monitored plan with cross-party consensus to avoid the pitfalls of erratic policy changes.
Paul Drechsler, former president of the CBI, echoed these sentiments, criticising Britain’s political U-turns, inconsistent funding, and lack of a stable industrial strategy as major hindrances to the sector’s growth.
