FourJaw Manufacturing Analytics has published analysis showing that UK manufacturing productivity and output have grown since 2020, despite a smaller workforce and a period of severe inflationary pressure.
The analysis, released for National Productivity Week, found that UK manufacturing output in 2025 was 6% above 2020 levels after inflation. That real-terms growth outpaced the United States, at 4%, and Japan, at 2%, while Germany recorded a 6% decline over the same period.
Productivity, measured as real output per worker, has risen by 10% in UK manufacturing since 2020. Among major manufacturing economies covered by the analysis, only South Korea, Spain, and India recorded stronger productivity growth, at 34%, 14%, and 13%, respectively.
The figures point to a sector producing more with fewer people. FourJaw said the UK factory workforce has fallen by 4% over the period, yet output has continued to increase. Its separate UK Manufacturing Productivity Index also reported that the value of manufacturing output rose by £21bn in 2025, while the sector employed more than 36,000 fewer people and had 2,500 fewer manufacturers.
Greater use of automation, robotics, shopfloor data, and continuous-improvement systems is likely to be one contributor to the shift. The gains do not remove long-standing pressures around energy, skills, finance, and global demand, but they do show parts of UK manufacturing extracting more value from existing machines, people, and production lines.
In 2025, only factories in the United States and France produced more output per worker than the UK among the economies cited, with output per worker of £449,000 and £339,000, respectively. The UK figure stood at £253,000.
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.”
The productivity data gives manufacturers a stronger case for targeted investment in factory data, equipment utilisation, automation, and production planning. Rising employment, energy, logistics, and materials costs continue to squeeze margins, making higher output per worker a central measure of competitiveness rather than a back-office statistic.
“Given the global economy, it’s fair to say that the current operating environment is tough for many manufacturers,” Iveson added. “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.”
FourJaw’s UK Manufacturing Productivity Index provides further detail on manufacturing output, productivity, and subsector performance.
