Manufacturers in the East Midlands have increased their output by over a fifth in the last decade, reinforcing the critical importance of the sector to the East Midlands economy overall, according to a new report out today.
The Make UK/BDO Annual Regional Manufacturing Outlook report shows that since 2013 output in the region has increased by 21%, while its importance to the region’s economy overall is highlighted by the fact it accounts for more than 15% of the region’s total output, significantly above the national average.
Over a quarter of a million people (258,000) are employed in highly skilled jobs, accounting for 10% of East Midlands employment overall, many of them in high value sectors such as Automotive, Aerospace and Precision Engineering.
Three major sectors account for almost half of East Midlands manufacturing production with the largest being Food and Drink with more than a fifth (20.6%) of industrial output. This is followed by Transport Equipment at 12.7% and then Rubber & Plastics at 12.1%.
In 2023 the East Midlands accounted for 7% of the UK’s total goods exports with the EU being the dominant destination (45%), but one of the lowest dependencies across the UK. This is followed by Asia & Oceania for more than a quarter of exports (28%), making the region the biggest exporter to this area of any UK region. The next most important export market is the United States (16%).
Commenting, Chris Corkan, Region Director for Make UK in the Midlands said: “Industry remains critical to the growth of the economy, providing high value, high skill jobs and aiding the process of creating wealth across the UK.
“The new Government has made a welcome bold statement of its intent to tackle the UK’s anaemic growth at national and regional level. It should now back this with a radical, cross government, long-term industrial strategy which has the need to tackle the UK’s skills crisis at its heart.
“This should 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 now fully open for business.”
Jonathan Lanes, Head of Manufacturing at BDO in the Midlands, added: “The manufacturing sector in the East Midlands has continued to grow over the last decade despite the sector facing multiple external shocks and changing policy priorities in recent years. Manufacturers have shown great resilience in overcoming these challenges.
“There is now an exciting opportunity for the sector to work with the new government on the development of a new long-term industrial strategy. This could unlock vital investment needed across the East Midlands to continue to bolster manufacturing output and skilled employment opportunities which is so important to the regional economy.”
