Your local Make UKand BDO contacts Make UK: North of EnglandDawn HuntrodRegion Director07734 794189 Midlands and East of EnglandChris CorkanRegion Director07785 337234 WalesJanis RichardsMembership Director07920 117165 South of EnglandKerri-Anne MrukRegion Director07825 847 887 BDO: Central SouthMatthew CarterDirector National East Anglia Peter HarrupPartner07788 144 262peter.harrup@bdo.co.uk Richard AustinPartner, National Head ofManufacturing07808 246 133 MidlandsChris ColePartner07789 745 110 LondonEyad HamouiehPartner07837 208 051 North East, Yorkshireand the HumberSteve TalbotPartner ScotlandMartin BellPartner07722 990 444martin.bell@bdo.co.uk ReadingChris PoolesPartner07831 556 938 North WestGraham EllisPartner07812 677 047 South West South East Matthew SewellPartner07971 761 818 Mark HuttonDirector07976 198 893 Regional Manufacturing Outlook2025Regional Manufacturing Outlook2025 Richard AustinHead of Manufacturing Dr. Séamus NevinChief Economist As a result of novel challenges and opportunities,manufacturing activity by location has been mixed, albeit thegood certainly outweighs the bad in our review. All regionsand nations reported growth in their output in the last twelvemonths, except for Scotland. Similarly, most areas reporteda boost in their order books too, the South West has stoodout, performing best in the UK for output and orders – anexample of the benefits of publicly supporting industries like Last year marked a decade since the inaugural publication ofthe Regional Outlook report, which coincided with a GeneralElection. Since then, manufacturers have dealt with a plethoraof challenges, whilst maintaining a positive outlook on the It’s safe to say things have not been quiet since the election.Domestically, the Autumn Budget of 2024 took bold steps tofill a financial black hole in the Treasury’s vault whilst outliningactions to increase employment security. This includedraising both the National Minimum Wage and employers’National Insurance contributions, leading to a sharp increase Overall, despite the impact of economic disruption, UKmanufacturers across the nation are doing well and arepositively looking towards the future, by focusing on the Beyond our national boundaries, the US saw President Trumpreturn and take unprecedented action to bring economicprosperity back to their nation, primarily through tariffs onimports. These blanket tariffs, coupled with more substantialtariffs on specific goods such as cars, caused significantuncertainty for UK manufacturers. It was expected thatdemand from our second-largest trading partner after the The new Industrial Strategy will play a major role in shapingthose investment decisions at the firm level. The Governmenthas done right by focusing on supporting the cost of energyfor industry, coupled with increasing support for skills and The good news is that the pendulum is about to swing inour favour following the unveiling of the long-term IndustrialStrategy. Make UK have been calling for this long-term planand commitment to industry for over a decade now, and the Regional Snapshot This year’s edition ofRegional Manufacturing Outlookshows mostly positiveresults for all regions and nations in the UK covered by the research. Despite general positivity across the board, there remainsa wide amount of variance across the UK’s geographies,variance that often is characterised by the dominant and nations, where negativity exists, it has largely beenlimited to a modest degree. The South West region hasemerged as the most performant region over this research How do the regions/nations compare? This edition ofRegional Manufacturing Outlook, inpartnership with BDO, covers a four-quarter period wherethe strong majority of data showed positivity on averageacross the year. Interestingly, those regions which have one of only two regions and nations within the researchthat showed negative year-average figures for investment Rather, the strongest investment intentions for the yearahead emerged from the North West, which, despiteshowing diminutive output growth over the researchperiod, consistently showed strength in the sector’s commitment to capital expenditure in the future. There’slittle doubt that its dominant manufacturing subsector, the Transport Equipment subsector, accounting for 24% of allmanufacturing in the region, has been the driving force ofthese intentions. of the UK Government’s recently announced IndustrialStrategy, certain manufacturing subsectors are poised forgreater focus in the UK’s economy in the coming years, so The poorest performance has been observed in the nationof Scotland, where average balances for the year for outputand orders aggregated to -4% and -7% respectively.Despite this pack-bottoming performance on a relativescale, the absolute negativity of these figures is quite The region that outperformed all others across the coremetrics of output and orders this year was the South West.Posting