Manufacturers in the North East have seen output recover to pre-Covid times, according to the latest Make UK/BDO Annual Regional Manufacturing Outlook report, with the sector a major contributor to the local economy.
Output was almost a fifth higher than that recorded in 2018, the report found.
The sector accounted for almost a sixth of the region’s total output, well above the national average. It also contributes 121,000 jobs – an addition of 7,000 jobs since 2023. This is almost 10 per cent of the region’s employment overall.
Three major sectors make up half of North East manufacturing production with the largest being the pharmaceuticals sector with more than a quarter (28 per cent) of industrial output in the region. This is followed by the transport sector (largely automotive) at 17.1 per cent and then metal products at 10.3 per cent.
In 2024, the North East made up 4 per cent of the UK’s total goods exports with the EU.
Dawn Huntrod, region director for Make UK in the North, said: “Industry remains critical to the growth of the North East 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.”
Steve Talbot, head of manufacturing in the North East 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 North East is a great place to start.
“Accounting for 121,000 highly skilled jobs, an addition of 7,000 jobs since 2023 and almost 10% 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.
“What these businesses need now is targeted investment and support to locate new trading partners, boost export levels and continue to bridge the skills gap.”
