14th Jul 2025 03:12
(Alliance News) - Manufacturing output is back above 2019 levels for the first time, new research suggests.
Make UK and BDO said its annual study of output, employment, exports and wider trade patterns found that all regions of the UK were back above 2019 levels.
The South West was the strongest performing region with output more than a quarter above 2019 levels, followed by the East of England and the North West, both up by a fifth.
The growth in the South West and North West in particular was likely to have been driven by a surge in spending by aerospace and defence sectors, due to large orders from the major airlines for new aircraft and, the ramping up of defence spending across Europe, said the report.
Fhaheen Khan, Senior Economist at Make UK, said: "It's taken some time and some regions are striking forward at a faster rate than others, but hopefully the post-Covid malaise is now firmly in the rearview mirror.
"What this year's report does show, however, is that we are likely to see a growing divergence between those regions and nations that have the sub sectors where greater levels of investment are taking place.
"In developing local growth plans, many of which will see advanced manufacturing play a central role, government must be mindful to ensure that growth is evenly spread."
Richard Austin, head of manufacturing at BDO, added: "The impact of the pandemic on the manufacturing sector can't be understated. Having battled grounded flights, reduced demand and disrupted supply chains, to see manufacturing bounce back with such renewed force is a testament to the industry's resilience and the strength of the regions they are working in.
"As these sectors pick up pace once again, they'll need all the help they can get in order to maintain the UK's position as a global leader.
"The industrial strategy is a good start but they'll need continued investment in design, innovation, and skills across the whole of the country if they're to weather global trade disruption."
source: PA
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