Manufacturers across the Central South and South East have seen output recover since the pandemic to more than 6% above that recorded in 2019 according to the latest snapshot of the sectors’ contribution to the region’s economy.
The Make UK/BDO Annual Regional Manufacturing Outlook report shows the importance of the manufacturing sector to the South East’s economy, accounting for just 4% of the region’s overall output due to the dominance of the service sector. It contributes 416,000 highly skilled jobs, the largest of any English region or devolved nation. An additional 3,000 jobs have been created since 2023.
Three major sectors make up more than four tenths of manufacturing production with the largest being the food and drink sector, which is worth a fifth (20.1%) of industrial output in the region. This is followed by the electronics sector worth 13.2% and then pharmaceuticals at 9.6%.
In 2024 the EU was the dominant destination for exports (47%) from the South East followed by North America (18%) and Asia & Oceania (17%).
Commenting, Kerri Anne Mruk, Region Director for Make UK in the South, said:
“Industry remains critical to the growth of the South East 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.”
Matthew Carter, Head of Manufacturing in the Central South at BDO added:
“The government has made clear that their industrial strategy is proudly place based and these results remind us all that manufacturing across the Central South and South East is a great place to start.
“Contributing over 400,000 jobs to the region’s employment, in the midst of an employment crisis, manufacturing is undoubtedly vital to the continued economic health of the region.
“What these businesses need now are targeted investment and support to locate new trading partners, boost export levels and bridge the skills gap.”
