A new research report released by The Manufacturer, in partnership with Barclays reveals that the UK manufacturing industry is facing a productivity gap compared to its international peers – but that business leaders are acting quickly to close this gap through digital transformation and workforce development.

The report – Mind the Gap: Closing the Productivity Divide in the UK’s Manufacturing Sector – shows that 53% of manufacturers are looking to reskill or upskill to boost productivity, seeking to close the gap which currently puts the UK about 10% lower than the G7 average in productivity and puts Germany 16% ahead of the UK in productivity per hours worked.

More than half of surveyed manufacturers (56%) reporting that they believe national manufacturing productivity is in decline, but notably, a near equal number (50%) are already prioritising an increase in digital transformation over the next 12 months in an effort to turn the ship. In addition, the report also reveals a renewed focus amongst industry leaders on embedding a culture of continuous improvement with over half of firms (53%) now use KPI dashboards for real-time performance tracking, while 42% have adopted ERP systems to improve visibility and efficiency.

Lee Collinson, National Head of Manufacturing, Transport and Logistics at Barclays, said: “UK manufacturing’s productivity challenge is significant – but so too is the opportunity for the industry. The data is clear that the sector is full of forward-looking firms who are investing in people, technology and innovation in order to drive long-term competitiveness and shore up the UK’s gap in productivity compared to its global peers. At Barclays, we’re fully committed to supporting UK manufacturers with their growth ambitions and to ensuring that the key barriers identified by business leaders can be overcome.

By combining targeted government support with continued private-sector commitment and capital backing, UK manufacturers can not only close the productivity gap but ultimately build a more resilient and sustainable manufacturing sector.”

James Devonshire, News Editor for The Manufacturer said: “Closing the current productivity gap within manufacturing represents a huge opportunity for the UK. The manufacturing sector is seeing significant support and backing from government, with advanced manufacturing a key pillar of the new Industrial Strategy. As such, there is enormous potential within the sector just waiting to be realised and brought to life.”

The current landscape leaves ample room for improvement – and collaboration – across industry and government. By streamlining access to support, simplifying funding mechanisms, and aligning policy with a long-term industrial strategy, public and private partners can help unlock the sector’s full potential – particularly for SMEs seeking accessible pathways to technology adoption and skills development.

Download Mind the Gap: Closing the Productivity Divide in the UK’s Manufacturing Sector now for more insights.



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