UK manufacturers achieved an output worth £150.9 billion in Q3 2024, marking a 1.2% increase compared to the same quarter in 2023, despite operating with a significantly smaller workforce. The data, analyzed by FourJaw Manufacturing Analytics using the UK Manufacturing Productivity Index, highlights the sector’s resilience amidst challenging economic conditions.
While the Q3 2024 output was 1.2% lower than Q2 due to a 0.7% dip in factory prices in September, adjusted figures reveal stable production levels quarter-on-quarter. Notably, the year-on-year output per manufacturing employee rose 2.2%, even as the industry employed 25,000 fewer workers.
Chris Iveson, CEO of FourJaw Manufacturing Analytics, expressed optimism regarding the findings:
“The latest manufacturing data has some aspects to be proud of. Manufacturing output and productivity are up compared to last year despite global economic uncertainty and businesses delaying investment decisions pending the general election. There are more manufacturers in the UK than a year ago, and while they would like to be busier, data indicates the industry is leaner and more efficient, producing more with a smaller workforce.”
Although the number of manufacturers has grown since 2023, output per manufacturer fell slightly by 0.3% year-on-year, reflecting challenges such as price pressures and slower demand. Nonetheless, the increased efficiency underscores the sector’s adaptability and resourcefulness in navigating these obstacles.
As the industry prepares for future uncertainties, the data signals a promising trend of improved productivity and streamlined operations, reinforcing the UK manufacturing sector’s capacity to sustain growth in a rapidly evolving global market.
