This notable decline, attributed to a “redrawing of the contours” of the global economy, sees Britain fall to 12th place in the 2022 rankings, down from eighth the previous year.

Make UK’s analysis reveals that Mexico and Russia have overtaken the UK, securing the seventh and eighth positions, respectively. Mexico’s ascent is driven by increased investment from China, while Russia’s rise is due to a boost in defense production, now accounting for 6% of its GDP. China and the United States maintain their positions as the top two leading manufacturing economies.

The UK’s manufacturing sector, contributing £217 billion to the nation’s output and providing approximately 2.6 million jobs, requires a “long-term industrial strategy,” warns Make UK. Verity Davidge, the director of policy at Make UK, expressed disappointment at the UK’s slip but attributed it to global economic trends rather than a decline in domestic industry.

Northwest England remains the UK’s largest manufacturing hub, employing 330,000 people and generating £29.5 billion in output. Despite this, the sector has criticised the previous government for its inconsistent policymaking. Stephen Phipson, CEO of Make UK, has called the absence of a cohesive industrial strategy the country’s “Achilles heel,” advocating for a plan to elevate manufacturing to 15% of the national economy.

Phipson emphasised that major economies like Germany, China, and the US have long-term manufacturing strategies that underscore the critical role of industrial bases in their broader economic success. He urged the UK to adopt a consistent, independently monitored plan with cross-party consensus to avoid the pitfalls of erratic policy changes.

Paul Drechsler, former president of the CBI, echoed these sentiments, criticising Britain’s political U-turns, inconsistent funding, and lack of a stable industrial strategy as major hindrances to the sector’s growth.