Regional Manufacturing Outlook 2023
03.07.2023
The Make UK/BDO Regional Manufacturing Outlook report examines the contribution of manufacturing to the economies of every English Region and the devolved nations. It analyses the most recent official data and Make UK's quarterly data across a wide range of indicators, including output, orders, employment, and investment intentions.
This year’s Regional Outlook Report sees manufacturing jobs have grown in six out of eight English Regions and Wales, with Yorkshire & Humber seeing the biggest jump.
The report demonstrates the importance of the role of manufacturing jobs in ‘red-wall’ areas and Wales, as these areas have higher than average contributions to the regional economy.
The substantial boost in jobs across the sector highlights the importance of levelling up to create high skilled and better paid jobs. However, despite the increase in the number of jobs across most English Regions, the challenge to levelling up is highlighted by the fact that manufacturing in London and the South East posted by far the most substantial recovery from the pandemic according to the latest figures available.
Industry remains critical to the growth of the economy, providing high value, high skill jobs and aiding the process of levelling up. But, if we are to address the current anaemic growth prospects for the sector and the economy overall we need bold measures at national and regional level. This must include both a national industrial strategy which allies with local growth strategies to fit with the priorities and strengths of the region including infrastructure, innovation and skills in particular.
The manufacturing jobs growth we have seen across the last year is testament to the resilience of the sector as a whole. Manufacturing companies across the UK have had to overcome the multiple challenges thrown up by Brexit, shortages in skilled labour, pandemic-related supply chain delays and the huge energy price rises we have seen following the Russian invasion of Ukraine. While everyone is hoping for some respite, the headwinds show no sign of abating. With high inflation and interest rates continuing to rise, manufacturers will need to remain alert, responsive and resilient in the face of any future geopolitical or economic shocks.
