The UK manufacturing sector has seen an extraordinary leap in productivity, outpacing other major economies in per-worker value-added growth. A new analysis highlights a sharp increase of nearly £11,200 per worker between 2018 and 2023, positioning UK manufacturers ahead of traditional powerhouses like Germany, South Korea, and Japan.
Research by FourJaw Manufacturing Analytics for National Productivity Week reveals that UK manufacturing workers generated an average added value of £87,300 each in 2023, marking a 15% rise from £76,080 in 2018. These gains pushed the UK’s per-worker productivity above Germany’s £84,890, South Korea’s £74,480, and Japan’s £60,860. While these economies still produce more in absolute terms, the UK’s ability to generate greater value per worker signals a major shift in efficiency.
The latest World Bank data underscores the impact of these gains, showing that UK manufacturers contributed a net output of £224.2bn in 2023, excluding costs such as energy and materials. Among major global economies, only the United States outperformed the UK, with American manufacturing workers delivering an impressive $167,000 in net output per person.
China, the world’s largest manufacturing economy, produced a staggering £3.76tn in net output in 2023, representing over a quarter of global manufacturing output. However, its workforce of 214 million workers resulted in a significantly lower per-worker productivity level of £17,610, reinforcing the UK’s growing efficiency advantage.
Chris Iveson, CEO of FourJaw Manufacturing Analytics, highlighted the significance of the findings, stating: “Many of the world’s major manufacturing economies still produce more value overall than the UK, but they require significantly larger workforces to do so. Only US factory workers create more value more efficiently than those in the UK.”
Despite this success, Iveson believes the UK has only begun to unlock its full potential. “The productivity improvements achieved between 2018 and 2023 are remarkable, but there is still vast room for growth. Emerging technologies, workforce development, and strategic investment will be key to sustaining this momentum.”
As part of National Productivity Week, the Productivity Institute is championing initiatives to further enhance the UK’s productivity. Through targeted business events, the campaign is encouraging companies to invest in people, adopt cutting-edge technologies, and optimise financial strategies to drive continued growth in manufacturing efficiency.
FourJaw Manufacturing Analytics is at the forefront of data-driven insights, helping manufacturers improve efficiency and productivity through advanced analytics and real-time performance tracking.
Likewise Group PLC (LON:LIKE) is a distributor of floorcoverings and matting and has the opportunity to consolidate the domestic and commercial floorcovering markets to become one of the UK’s largest distributors in this sector.
