Manufacturing driving growth in region’s economic and employment development
Manufacturing output in the North West grew by 10% in 2024, which represented an almost 20% increase compared with pre-pandemic levels.
The Make UK/BDO Annual Regional Manufacturing Outlook report shows the importance of the manufacturing sector to the North West’s economy, accounting for almost a sixth (13%) of the region’s total output, well above the national average.
It contributes 335,000 highly skilled jobs, an addition of 3,000 jobs since 2023 and almost 10% of the region’s employment overall.
The growth in performance of manufacturing in the North West has been driven by the aerospace and defence sectors which are seeing a large boost in investment, as well as the automotive and pharmaceutical sectors where the region is also especially strong.
BAE Systems has a substantial investment in the region, at its submarine building facilities in Barrow-in-Furness and its jetfighter operations near Preston.
Three major sectors make up half of North West manufacturing production with the largest being the transport sector – largely aerospace – with almost a quarter (23.5%) of industrial output in the region.
Aircraft manufacturer, Airbus, employs around 4,500 staff at its wing-making plant in Broughton, near Chester.
This is followed by the food and drink sector at 13.9% and then pharmaceuticals at 11.6%.
In 2024 the North West accounted for almost 10% of the UK’s total goods exports, with the EU being the dominant destination (50%) followed by North America (18%) and Asia & Oceania (17%).
Dawn Huntrod, region director for Make UK, in the North, said: “Industry remains critical to the growth of the North West economy, providing high value, high skill jobs and aiding the process of creating wealth across the region.
“The Government has made a welcome bold statement of its intent to tackle the UK’s anaemic growth at national and regional level with its industrial and trade strategies.
“This should now 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 an attractive place to do business.”
Graham Ellis, head of manufacturing in the North West at BDO, said: “The government has made clear that their industrial strategy is proudly place-based and these results remind us that manufacturing in the North West is a great place to start.
“The manufacturing sector is worth a staggering £3bn a year to the region’s economy and contributes 335,000 highly skilled jobs – in the midst of an employment crisis these stats show the importance of manufacturing to the economic health of the region.”
He added: “What these businesses need now is targeted investment and support to locate new trading partners, boost export levels and bridge the skills gap.”
Sorce: The Business Desk - Neil Hodgson