ATA Recruitment
UK manufacturing output hits £156.5bn: impact on engineering and industry
UK manufacturing delivered £156.5bn in output during Q3 2025, according to analysis of ONS data by FourJaw Manufacturing Analytics. This milestone shows that while parts of the sector face pressure, engineering led industries remain strong and continue to underpin the UK’s position as a high value manufacturing economy. This comes at the same time as the government’s Autumn Budget which introduces new measures designed to support investment, energy costs and strategic sectors within UK manufacturing.
Manufacturing Output Is Rising. Here Is What the Data Shows
ONS figures confirm that total production output fell by 0.5 percent in Q3 2025, with manufacturing output down 0.8 percent. Even so, manufacturing contributed 8.5 percent of UK GVA between July and September which highlights the sector’s ongoing importance.
Within this wider picture, engineering heavy industries are outperforming the averages. Data from the Manufacturing Technologies Association shows aerospace output increased by 1.5 percent in Q3, while machinery output rose 1.4 percent year on year.
These results indicate that high value, precision driven sectors are proving more resilient and continue to support national output.
Where the Growth Is Coming From
Aerospace production increased by 1.5 percent in Q3 and 7.5 percent year on year. Demand is being supported by global air travel recovery and long term defence programmes that provide stable, multi year production pipelines.
Machinery and Industrial Equipment
Machinery output grew by 1.4 percent year on year, driven by continued investment in automation, process efficiency and capital equipment upgrades across FMCG, logistics, automotive, construction materials and process engineering.
Electronics and Automation Technology
Manufacturers are increasing investment in robotics, industrial controls and advanced automation technology. This supports growth across machinery, advanced manufacturing and smart production sectors.
More stable supply chains and normalised material prices have helped improve throughput in fabricated components and engineered assemblies. This supports demand in aerospace, machinery and automotive supply chains.
What This Means for the Direction of UK Industry
Three themes are clear:
Engineering led manufacturing is showing greater resilience than lower value segments.
Capital investment is shifting towards automation, advanced machinery and digital production systems.
Long cycle programmes in aerospace, defence and advanced machinery continue to anchor output and reduce volatility.
What to Watch Going Into 2026
Key factors that will influence the next 12 months include the pace of automation adoption, global aerospace demand, materials supply chain stability and changing investment intentions across UK manufacturing. Engineering focused sectors remain well placed to lead growth.
The Autumn Budget 2025. What It Means for Manufacturing and Engineering
The Autumn Budget announced in November 2025 introduced a series of measures aimed at supporting UK manufacturing and engineering. The government confirmed plans to reduce electricity prices for manufacturing businesses which will help improve competitiveness in energy intensive industries. A new 40 percent first year allowance will allow companies to write off a significant portion of investment spending up front which is expected to encourage greater investment in machinery, automation and advanced production equipment.
Additional targeted funding was directed toward strategic sectors including defence, clean energy, semiconductors and advanced manufacturing. Support for regional skills development and free under 25 apprenticeships for SMEs aims to expand the future industrial workforce.
Together these measures outline a clear intent to boost productivity, accelerate investment and strengthen the role of engineering led sectors within the UK economy.
How ATA Recruitment Supports These Industries
ATA Recruitment specialises in permanent, contract and interim recruitment across the engineering led sectors contributing most to UK manufacturing performance. This includes aerospace, FMCG, automotive, process engineering, warehouse automation, construction materials manufacturing, machinery and general engineering.
We help manufacturers secure the Engineers, technicians and project specialists needed to deliver output targets, support modernisation programmes and maintain performance across production and capital projects.
If your organisation is planning growth, modernising production or building new capability, now is the time to prepare your workforce.
ATA Recruitment can help you secure the talent required to stay aligned with the momentum building across UK industry.
Get in touch with us to discuss how we can support your plans for 2025 and beyond.
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