Manufacturing encompasses all economic activities that transform raw materials into either intermediate goods (such as steel bars) or final products (such as cars). Manufacturing accounts directly for about 10% of the UK economy and 9% of employment (3 million jobs).
However, the sector also creates jobs in services – when this is taken into account, it represents 15%-22% of the economy and 5-7 million jobs. It provides almost half of UK exports and 60% of private sector investment and employment in research and development. It has higher productivity and wages than the average for the economy as a whole.
Even so, most developed countries (including the UK) are considered service-based economies, as services account for more employment and output than manufacturing and other economic activities combined.View all facts