Number of U.K. Manufacturing Businesses Shrank by 10% Last Year
Manchester – The number of UK manufacturing businesses shrank by 9.6% last year, according to ONS data published last week1.
The number of businesses fell from 270,000 at the start of 2021 to 244,140 a year on, analysis of Thursday’s figures by innovation funding specialist Catax shows.
In comparison, business numbers in the UK overall fell by 1.5% over the same period.
Turnover in the sector fell by 9.2%, decreasing from £636billion to £577billion, while the number of people employed in manufacturing dropped by 1.7%.
The UK’s manufacturing sector continues to be hampered by falling orders, with output falling for a third month in a row this September, and orders declining for a fourth consecutive month2.
Mark Tighe, CEO of innovation funding specialist Catax, comments:
“The manufacturing sector had a challenging 2021, with business numbers shrinking by nearly 10% — far exceeding the UK’s overall business loss.
“The fact that output and orders continue to fall is a concern when advanced manufacturing is still seen as part of the UK’s future growth story. A significantly weaker pound could well have an impact on turning that around this year.”
