East of England manufacturing the best of British

To underline the region’s manufacturing dominance, Make UK and BDO also reveal that East of England manufacturers have significantly increased their output in the last decade.

The figures not only reinforce the importance of the sector to the East of England but also show that output is now almost 10 per cent higher than pre-pandemic levels.

The Make UK/BDO Annual Regional Manufacturing Outlook report shows that since 2013 output in the region has increased by 15 per cent, with 229,000 people employed in highly skilled jobs, many of them in high value sectors such as Pharmaceuticals and Precision Engineering.

Three major sectors account for almost four tenths of East of England manufacturing production with the largest being Food and Drink with 13.3 per cent of industrial output.

This is followed by Pharmaceuticals at 12 per cent and Machinery & Equipment at 10.8 per cent. The East of England has the largest proportion of sectors not in the top three, highlighting the diversity of production across the region.

Last year the East of England accounted for nine per cent of the UK’s total goods exports with the EU being the dominant destination (49 per cent). This is followed by the United States at 21 per cent and Asia & Oceania at 14 per cent.

Peter Harrup, Head of Manufacturing at BDO in the East of England said: “The East of England is rich in its diversity of production across the manufacturing sector.

“Over the last few years, manufacturers across the region have faced multiple external shocks and changing policy priorities. They have shown great resilience in overcoming these challenges.

“There is now an exciting opportunity for the sector to work with the new government on the development of a new long-term industrial strategy. This could unlock vital investment needed across the region to continue to bolster manufacturing output and skilled employment opportunities.”

The situation across the rest of the UK is more alarming. In the 12 months to March 2024, the number of manufacturing jobs in Wales increased by 13,000, in Scotland by 10,000 and in Northern Ireland by 2,000.

By contrast, every English region saw a fall manufacturing jobs in the same period apart from the East of England being the only region showing a slight rise. This meant the sector saw an overall fall of 34,000 jobs in the year. Make UK says the increase in Wales is likely to have been driven by the significant supply chain in the Aerospace & Defence sectors which have seen strong growth in the last year.

The Transport Equipment sector (mainly aerospace) accounts for 15.5 per cent of manufacturing in Wales, the largest sub sector. In Scotland, the increase is likely to have been driven by the growth of renewables investment, especially offshore wind.

Verity Davidge, Director of Policy at Make UK, said: “Industry remains critical to the growth of the economy, providing high value, high skill jobs and aiding the process of creating wealth across the UK.

“The new Government has made a welcome bold statement of its intent to tackle the UK’s anaemic growth at national and regional level. It should now back this with a radical, cross government, long-term industrial strategy which has the need to tackle the UK’s skills crisis at its heart.

“This mission critical vision should be allied with the local growth strategies and priorities of each region, including infrastructure and innovation, together with other measures to ensure the UK is now fully open for business.”

Richard Austin, Head of Manufacturing at BDO added: “Over the last few years, manufacturers across the regions and nations have faced multiple external shocks and changing policy priorities.

“They have shown great resilience in overcoming these challenges. There is now an exciting opportunity for the sector to work with the new government on the development of a new long-term industrial strategy.

“This could help address longstanding skills shortages, boost infrastructure, improve productivity and unlock vital investment to help drive economic growth and prosperity.”

The survey also shows that every UK region and nation has returned output above pre-pandemic levels apart from the West Midlands due to the downturn in the automotive sector and the transition of supply chains to electric vehicle production.