The UK has dropped out of the top ten global manufacturing nations for the first time in records, now ranking 12th according to a report by Make UK.
This decline, described as a “redrawing of the contours” of the global economy, sees Mexico and Russia overtaking the UK, securing the seventh and eighth positions respectively.
The manufacturing share of the UK economy has significantly declined, now representing 9.4% compared to 17% in 1990.
Mexico’s increased manufacturing is attributed to increased Chinese investment, while Russia’s rise is driven by a boost in defense production.
Despite contributing £217 billion to the UK’s output and providing about 2.6 million jobs, the manufacturing sector faces challenges.
According to Verity Davidge, Make UK’s director of policy, the decline is due to global economic trends rather than domestic industry failure. Make UK’s CEO, Stephen Phipson, called for a cohesive, long-term industrial strategy to elevate manufacturing to 15% of the national economy. He emphasized the need for an industrial strategy, noting that major economies like Germany, China, and the US have long-term plans supporting their industrial bases.
Meanwhile, Paul Drechsler, former president of the CBI, criticized the UK’s political inconsistencies and lack of a stable strategy, which have hindered sector growth.
However, the UK government, under Prime Minister Sir Keir Starmer, is aiming to revitalize manufacturing through an interventionist approach, including infrastructure investments via a £7 billion National Wealth Fund. The strategy will focus on future technologies like electric cars, batteries, and wind turbines.
The UK government’s new strategy aims to ensure stability, improve productivity, and drive economic growth in the competitive global manufacturing market.
