New Analysis Reveals UK Manufacturing Workforce Achieved Unprecedented Productivity Growth
The value added by UK manufacturing workers has surged in recent years, with new analysis from FourJaw Manufacturing Analytics revealing a remarkable increase of nearly £11,000 per worker between 2018 and 2023. This rise in productivity outpaced all other major manufacturing economies during the same period, solidifying Britain’s position as a high-value manufacturing hub.
According to World Bank data, UK manufacturing delivered net output worth £221bn in 2023 after deducting energy, material, and input costs. FourJaw’s in-depth analysis, which integrates OECD workforce data, highlights that this equates to £86,500 in added value per worker across the UK’s 2.6 million-strong manufacturing workforce. This marks a 15% increase from the £75,000 per worker recorded in 2018.
UK Productivity Leads Over Global Counterparts
The productivity surge has elevated UK manufacturing workers above their German (£84,500), South Korean (£74,000), and Japanese (£60,500) counterparts in per-worker output. These economies have historically outperformed the UK in manufacturing efficiency, but the latest figures reveal a shift in momentum. However, despite these gains, US factory workers remain the global leaders in productivity, generating net output of £133,500 per worker in 2023.
China Dominates Output, But Lags in Worker Efficiency
China remains the world’s dominant manufacturing powerhouse, contributing £3.7tn to the global manufacturing economy in 2023—accounting for over a quarter of the world’s total £12.7tn output. However, China’s immense workforce of 214 million manufacturing employees results in a significantly lower per-worker productivity level of just £17,500.
Chris Iveson, CEO of FourJaw Manufacturing Analytics, commented: “Many of the world’s major manufacturing economies still produce more value in absolute terms than the UK, but they need significantly larger workforces to do so. Only US factory workers create more value more efficiently than those in the UK.”
Iveson emphasised that while the UK’s productivity growth is impressive, there is still ample room for improvement: “Our analysis shows that the productivity gains achieved by UK manufacturing and factory workers between 2018 and 2023 outpaced those of any other major manufacturing economy. However, this is only the beginning of what is possible for UK manufacturing efficiency.”
National Productivity Week Aims to Drive Further Gains
The release of this report coincides with the launch of National Productivity Week, an initiative by the Productivity Institute to enhance efficiency across the UK economy. The campaign aims to drive further improvements in manufacturing output and overall workforce efficiency.
Industry leaders are calling for continued investment in digital manufacturing solutions, automation, and workforce upskilling to build on recent gains and cement the UK’s place as a leading high-value manufacturing economy.
The Workers Union Says…
“The UK manufacturing sector’s impressive productivity gains underscore the resilience and innovation of British workers. However, to maintain and build on this momentum, further investment in skills development, technology, and efficiency-enhancing strategies will be critical. The Workers Union supports initiatives that empower UK workers and ensure they remain at the forefront of global productivity and manufacturing excellence.”
