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.
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