Regional Manufacturing Outlook 2025
14.07.2025
All English regions, Scotland and Wales have now surpassed pre-pandemic manufacturing output levels for the first time since 2019, according to the newly released Regional Manufacturing Outlook 2025 report from Make UK and BDO.
Amid ongoing cost pressures, global uncertainty and trade friction, UK manufacturing continues to demonstrate its resilience. This year's report highlights the role of key sectors such as aerospace and defence in powering growth across high-performing regions.
Key findings at a glance
- All English regions and devolved nations (excl. Northern Ireland) have now exceeded 2019 manufacturing output levels.
- Aerospace and Defence investment is fuelling growth in top-performing areas.
- The South West, East of England and North West emerge as the strongest performing regions.
- Certain regions are more vulnerable to future disruption from potential US tariffs.
- Exports to the EU continue to decline, driven by persistent trade barriers.
- 12,000 new manufacturing jobs created across the UK.
About the report
The Regional Manufacturing Outlook is an annual deep dive into the state of UK manufacturing at the regional/ devolved nation level. It draws from official data sources to track output, employment, sector strengths, exports, and broader trade patterns across the UK.
This year’s findings present a cautiously optimistic outlook for the sector, while also underscoring regional disparities and global trade risks that remain on the horizon. Read it in full below.
It’s taken some time and, some regions are striking forward at a faster rate than others, but hopefully the post covid malaise is now firmly in the rear view mirror.
"What this year’s report does show, however, is that we are likely to see a growing divergence between those regions and nations that have the sub sectors where greater levels of investment are taking place.
"In developing Local Growth Plans, many of which will see Advanced Manufacturing play a central role, Government must be mindful to ensure that growth is evenly spread.
The impact of the pandemic on the manufacturing sector can’t be understated. Having battled grounded flights, reduced demand and disrupted supply chains - to see manufacturing bounce back with such renewed force is a testament to the industry’s resilience and the strength of the regions they are working in.
“As these sectors pick up pace once again, they’ll need all the help they can get in order to maintain the UK’s position as a global leader. The industrial strategy is a good start but they’ll need continued investment in design, innovation, and skills across the whole of the country if they’re to weather global trade disruption.
