Manufacturing growth boost for East of England

Almost half of East of England manufacturing exports (49 per cent) go to EU countries – one percentage point below the UK average. This is followed by North America (22 per cent) and Asia & Oceania (14 per cent).  

The manufacturing sector in the East of England contributes 228,000 highly skilled jobs, an addition of 9,000 since 2023, and seven per cent of the region’s employment overall, the Make UK/BDO research shows. Manufacturers locally have seen output recover to 21 per cent higher than in 2019 according to the report.

The East of England is the UK’s third largest region in terms of gross value add (GVA) and the fourth largest manufacturing sector. The East of England economy accounts for 8.3 per cent of the UK’s total output, whilst its manufacturing sector accounts for 0.9 per cent of the UK’s total output. The manufacturing sector accounts for 10.7 per cent of the region’s total output, above the UK average of 9.1 per cent. 

The region’s largest three manufacturing subsectors are Pharmaceuticals (15.2%), Food & Drink industry (13.5%) and Machinery Equipment (11.6%) combined. Out of all regions and nations in the UK, the East of England has the largest proportion of its manufacturing made up of subsectors not included in the top three, highlighting the diverse manufacturing subsector base that the region plays host to.

Key findings from the report reveal a mixed picture of manufacturing activity across the UK, however positively, all English regions, and Scotland and Wales have now exceeded pre-pandemic output levels. The South West region stands out as the top performer, with significant growth in output and orders, driven by its strong aerospace and defence sectors. Conversely, Scotland reported the weakest performance, with declines in output and orders, although the negativity was modest.

Investment intentions vary across regions, with the North West leading the way, driven by its transport equipment subsector. The East of England showed the most improved sentiment for investment in capital, indicating increased confidence. However, the North East experienced sluggish growth due to weak employment figures, and output and orders fell below the performance of last year.

Chris Corkan, Region Director for Make UK in the East of England, said: “Industry remains critical to the growth of the East of England economy, providing high value, high skill jobs and aiding the process of creating wealth across the UK. 

“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.”

Peter Harrup, Head of Manufacturing in the East of England at BDO added: “The Government has made clear that their industrial strategy is proudly place based and these results remind us that manufacturing in the East of England is a great place to start. 

“Accounting for almost a quarter million highly skilled jobs, an addition of 10,000 jobs since 2023 and almost seven per cent of the region’s employment, in the midst of an employment crisis these stats show the importance of manufacturing to the economic health of the region.”

The Regional Manufacturing Outlook 2025 is available to download via the BDO website.