British manufacturing continued its climb up the global rankings as growth returned last year, according to a fact table published today by EEF, the manufacturers’ organisation.
Britain is now the eighth largest industrial nation with an annual output now worth US$249bn, overtaking France.
Manufacturing is responsible for 44 per cent of British exports. The UK has 2.6 million workers in manufacturing - the largest sector is food and drink 16 per cent; chemicals, pharmaceuticals and transport account for 14 per cent of output each.
Chart from EEF - UK manufacturing output.
The European Union accounted for 48 per cent of manufactured exports in 2017q2. Britain’s largest single export destination is the United States, followed by Germany and France.
British manufacturing output has not recovered to the same level as before the banking crisis – in 2007 the UK was the seventh largest manufacturing economy, and the Gross Domestic Product is 16.95 points below its 2007 peak, according to World Bank measurements.
Lee Hopley, Chief Economist of EEF said: “With government facing lots of major policy decisions on everything from our future trading relationship with Europe and the rest of the world to the detail of a long-term industrial strategy it is vital that they have the right industry facts at their fingertips. Our latest annual fact card reveals that manufacturing’s share of the economy remains stable at 10 per cent, but the sector makes a much larger contribution to vital exports and innovation.
“With the focus on industrial strategy, this year we highlight the varying strengths we see across manufacturing sub-sectors, from the strong research performance of pharmaceuticals and transport to the high export intensity of machinery and chemicals.”
Paul Brooks, Head of Manufacturing, Santander, said: “Manufacturing remains a key part of the UK economy and it is really encouraging to see that the UK is now the 8th largest manufacturer by output in the world, and that the majority of UK adults believe we should be aiming to be in the top five. With strong manufacturing figures reported from across the country, it is crucial that we continue to support manufacturers in all regions of the UK. Despite uncertainty around Brexit, manufacturers are seizing opportunities to increase their now more competitive exports, with the sector accounting for 44 per cent of UK exports. With the top 10 export destinations featuring markets both within and outside of the EU, Santander is committed to helping manufacturers reach new markets.”