Make UK/BDO Regional Manufacturing Outlook Report 2025

Regional Manufacturing Outlook 2025

Report

Updated: 

How has manufacturing fared in your region or nation over the past 12 months?


Welcome to the Regional Manufacturing Outlook 2025, a comprehensive report brought to you by Make UK and BDO. This annual review provides an in-depth analysis of manufacturing activity across the UK's regions and nations, offering valuable insights into the sector's performance over the last year.

The report marks the 11th edition of this partnership, reflecting on the challenges and opportunities faced by manufacturers in the past year. It highlights the impact of domestic and international economic shifts, including rising costs, the Autumn Budget of 2024 and the US's trade policies. Despite these challenges, UK manufacturers have shown resilience, maintained a positive outlook and adapted swiftly to protect their businesses.

Key findings from the report reveal a mixed picture of manufacturing activity across the UK, however positively, all English regions, and Scotland and Wales have now exceeded pre-pandemic output levels, 12,000 new manufacturing jobs have been created and investment in aerospace and defence is driving growth.

The South West region stands out as the top performer, with significant growth in output and orders, driven by its strong aerospace and defence sectors. Conversely, Scotland reported the weakest performance, with declines in output and orders, although the negativity was modest.

Investment intentions vary across regions, with the North West leading the way, driven by its transport equipment subsector. The East of England showed the most improved sentiment for investment in capital, indicating increased confidence. However, the North East experienced sluggish growth due to weak employment figures, and output and orders fell below the performance of last year.

The Regional Manufacturing Outlook 2025 provides a valuable resource for understanding the current regional landscape and underscores the diverse and dynamic nature of the UK's manufacturing sector, with each area contributing to the nation's industrial success in its unique way.

Download the Make UK/BDO Regional Manufacturing Outlook 2025 for the full regional insights.

If you would like to discuss any of the topics raised in this report, please do not hesitate to contact Richard Austin or your usual BDO Manufacturing partner

DOWNLOAD THE REPORT

If you’re interested in signing up for future reports, please click the subscribe button below to be added to our mailing list.

SUBSCRIBE

The Manufacturing Outlook campaign is a Make UK/BDO partnership providing the most comprehensive barometer of the economic climate facing UK manufacturers, providing up-to-date and detailed intelligence on the state of manufacturing across the UK economy. It is important to us that we understand the challenges that you face in running your manufacturing businesses. It helps us use our skills, experience, and knowledge to make a tangible difference to your business.

Manufacturing is a critical component of the UK economy for several compelling reasons. It's a sector that not only drives economic growth but also fosters innovation, supports employment, and contributes significantly to exports. 

Firstly, manufacturing is a major contributor to the UK's Gross Domestic Product (GDP). It adds substantial value through the production of goods that are both consumed domestically and exported globally. This economic activity stimulates further growth as it creates demand for raw materials, energy, and services. 

Secondly, the sector is a significant source of employment. It provides a wide range of jobs, from highly skilled roles in engineering and design to positions in production and assembly. These jobs often pay well and can be found across the entire country, supporting local economies and contributing to a more balanced economic distribution. 

Moreover, manufacturing is at the forefront of innovation. The UK is renowned for its advanced manufacturing capabilities, particularly in areas such as aerospace, automotive, and pharmaceuticals. Investment in research and development within the sector leads to new technologies and processes that can boost productivity and create new markets. 

The export element of manufacturing cannot be overstated. The UK is one of the world's largest exporters of manufactured goods, which helps to balance the trade deficit. By exporting goods, the UK not only generates revenue but also establishes and maintains important trade relationships with countries around the world. 

Lastly, the manufacturing sector has a multiplier effect on the wider economy. It supports a supply chain that includes numerous other industries such as logistics, retail, and construction. The health of manufacturing can often be an indicator of the health of these related sectors and, by extension, the overall economy. 

Manufacturing remains vital to the UK economy. It's a sector that we're committed to supporting and growing, recognising its role in providing jobs, driving innovation, and contributing to a positive trade balance.

Subscribe

Authors

Richard Austin
Deal Advisory Partner, Head of Value Creation Services and National Head of Manufacturing