Devolved nations see manufacturing jobs boost – Make UK/BDO report
Devolved nations see manufacturing jobs boost – Make UK/BDO report
But 64k vacancies remain, worth £6bn in lost output
Key findings:
- Scotland, Wales & Northern Ireland see manufacturing jobs increase
- In contrast every English region bar the East of England has seen jobs fall
- Every region and nation bar one shows double digit growth in last decade
- Yorkshire & Humber, North East and South West best performers over last ten years
- Every Nation and Region bar the South East has a higher than average dependence on manufacturing
The findings come in the Make UK/BDO Annual Manufacturing Outlook Report which shows that, in the twelve months to March 2024, the number of manufacturing jobs in Wales increased by 13,000, 10,000 in Scotland and 2,000 in Northern Ireland. By contrast, every English region saw a fall manufacturing jobs in the same period with 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 twelve months to March. (1)
According to Make UK, the increase in Scotland is likely to have been driven by the growth of renewables investment, especially offshore wind, while Wales has a 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% of manufacturing in Wales, the largest sector.
However, despite this fall, the pressure on finding skilled people is still severe as 64,000 vacancies remain in the sector, accounting for some £6bn in lost output according to Make UK analysis. (2) In response, Make UK is urging the new Government to make tackling skill shortages and reforming the technical education system the centrepiece of its industrial strategy.
Commenting Verity Davidge, Director of Policy for 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 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 report also analyses the growth in output across each nation and region over the last decade, as well a comparison between pre and post-pandemic levels. It shows that, despite the challenges posed by Covid and Brexit, every English region bar one has shown double digit growth in Gross Value Added (GVA) since 2013. Yorkshire & Humber has seen the best growth in output in that period (40%), followed by the North East (30%), and South West (27%). This compares to the average growth in manufacturing GVA across the UK overall in the same period of around 23%. (3)
Furthermore, the report highlights the importance of manufacturing to regional economies with every area in the UK, except for the South East & London, seeing an above average contribution from manufacturing to its local economy.
For example, the North East may have the smallest share of overall manufacturing output in the UK, but industry accounts for almost 15% of the region’s total output. The East Midlands has the highest share of manufacturing in its regional economy at almost 16%, while the West Midlands and Yorkshire & Humber have a significant contribution above the national average.
According to Make UK, this highlights the importance of the new Government’s industrial strategy to raising the performance of regional economies and, addressing inequality, given manufacturing jobs are better paid than the national average.
Ends
Notes to Editors
1. Workforce jobs by Region and Industry - ONS
| Mar-23 | Mar-24 | change | % change | |
| United Kingdom | 2620 | 2586 | -34 | -1.3% |
| North East | 112 | 110 | -2 | -1.8% |
| North West | 342 | 330 | -12 | -3.5% |
| Yorkshire and The Humber | 295 | 287 | -8 | -2.7% |
| East Midlands | 262 | 258 | -4 | -1.5% |
| West Midlands | 317 | 296 | -21 | -6.6% |
| East of England | 222 | 229 | 7 | 3.2% |
| South East and London | 414 | 401 | -13 | -3.1% |
| South West | 248 | 243 | -5 | -2.0% |
| Wales | 141 | 154 | 13 | 9.2% |
| Scotland | 173 | 183 | 10 | 5.8% |
| Northern Ireland | 93 | 95 | 2 | 2.2% |
2. Make UK analysis of ONS Vacancy and Productivity data 2024
3. Regional Gross Valued Added (balanced) by Industry: all ITL Regions, ONS
About Make UK
Make UK, The Manufacturers’ Organisation, is the representative voice of UK manufacturing, with offices in London, Brussels, every English region and Wales.
Collectively we represent 20,000 companies of all sizes, from start-ups to multinationals, across engineering, manufacturing, technology and the wider industrial sector. Everything we do – from providing essential business support and training to championing manufacturing industry in the UK and the EU – is designed to help British manufacturers compete, innovate and grow.
From HR and employment law, health and safety to environmental and productivity improvement, our advice, expertise and influence enables businesses to remain safe, compliant and future-focused.
About BDO LLP
Accountancy and business advisory firm BDO LLP provides integrated advice and solutions to help businesses navigate a changing world.
The organisations we work with are Britain’s economic engine –entrepreneurially-spirited, high-growth businesses that fuel the economy.
We understand the ambitions and entrepreneurial mindset of those we work with and have the global reach, integrity and expertise to help people and businesses succeed.
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BDO LLP operates in 18 offices across the UK, employing 7,500 people offering tax, audit and assurance, and a range of advisory services. BDO LLP is the UK member firm of the BDO international network.
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