UK manufacturing slips to twelfth in world rankings. Russia in the top ten

The UK’s manufacturing sector has dropped out of the top ten world rankings, falling to twelfth according to the latest official figures available published by Make UK.

The figures are contained in the latest annual ‘Manufacturing – The Facts’ which contains a wide variety of data about the contribution of manufacturing to the economy including exports, sectoral breakdown, how the UK compares to other nations and salary levels.

The data shows that in 2022 (the latest year for which global comparisons are available) UK manufacturing output was worth $259bn. This is behind Mexico (£316bn) which has climbed to seventh on the back of an already strong manufacturing base but also Chinese investments made in the first Trump Presidency to counter tariffs, while Russia has climbed to eighth place ($287bn) on the back of substantially increased defence production which is now worth 6% of GDP.

Both these countries have also leapfrogged Italy ($283bn) and France ($265bn) respectively who have dropped in the world rankings as a result to ninth and tenth respectively.

China remains the largest manufacturing nation with output worth $5.06trn (almost a third of global production) followed by the United States $2.69trn and Japan $850bn.

Germany remains the biggest manufacturing nation in Europe by some distance ($751bn) and retains its position as the world’s fourth largest manufacturing nation, followed by India and South Korea who have swapped places in fifth and sixth respectively.

According to Make UK the data reinforces the need for the UK to adopt a long term industrial strategy as those countries who have such a strategy are clearly seeing the benefits on economic output. A report by Make UK last year found that eight in ten manufacturers feel they are at a competitive disadvantage compared to other nations with industrial strategies.

Verity Davidge, Director of Policy at Make UK, said: “There is no getting away from the fact it’s deeply disappointing to see the UK drop out of the world’s top ten manufacturing nations for the first time. However, there are specific factors and trends which are redrawing the contours of the global economy.”

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