Analysis shows UK manufacturers outperform peers in productivity

National Productivity Week analysis shows UK manufacturers have outperformed inflation and global peers on both output and productivity over the past five years.

New analysis from FourJaw Manufacturing Analytics for National Productivity Week shows the UK manufacturing sector has achieved sustained growth in output and productivity over the past five years, despite a smaller workforce and historically high levels of inflation.

FourJaw’s analysis of the world’s largest manufacturing economies found that UK output in 2025 was 6% above 2020 levels, after accounting for inflation. This real-terms growth outpaced that of peers such as the United States (+4%) and Japan (+2%), while Germany saw a 6% decline.

UK manufacturers have also achieved a 10% increase in productivity (real output per worker) since 2020. Among major manufacturing economies, only South Korea (+34%), Spain (+14%), and India (+13%) have seen faster productivity growth during this period.

Despite a 4% reduction in the UK factory workforce, output has continued to rise, suggesting increased adoption of automation, robotics and data analytics to drive efficiency. In 2025, only factories in the United States (£449k per worker) and France (£339k per worker) produced more output per worker than in the UK (£253k per worker).

Chris Iveson, CEO at FourJaw Manufacturing Analytics, said: “The narrative of decline in UK manufacturing should be put to bed. Yes, there are challenges, and yes, the number of manufacturers in the UK has declined over the years, but our analysis shows the sector has rebounded post-pandemic and is quietly outperforming many of its peers in output and productivity gains.

“Given the global economy, it’s fair to say that the current operating environment is tough for many manufacturers. On the flip side, we can see there is renewed innovation happening in the UK, with a focus on efficiency and a commitment to overcoming challenges by updating production practices and adopting new productivity-boosting technologies.”