Knight Frank has published its latest Future Gazing report, revealing an upbeat picture for British manufacturing.
Made in Britain CEO John Pearce (pictured, left) joined a panel of industry experts at a launch event on Thursday, January 16, to discuss the report’s findings with others from the property, construction, and manufacturing industries.
CEO of Made in Britain, John Pearce said: “This report provides even more reasons for British manufacturers to be as optimistic as they are realistic about the near future of the sector, with real, sustainable growth, almost in sight this year. The upbeat findings of this report reflect what we’re seeing at Made in Britain – the UK really needs local manufacturing to thrive. I hope that this excellent report inspires more business leaders and investors to see the true value of manufacturing in this country.”
An optimistic outlook for UK manufacturing
Knight Frank is one of the world's leading independent real estate consultancies. Its Future Gazing report examines the evolving UK manufacturing landscape and the real estate opportunities it presents, highlighting the key trends impacting the sector’s future growth prospects and demand for UK warehousing.
The report reveals an optimistic long-term outlook for UK manufacturing, with the sector’s output projected to grow by 12% by 2033.
The Future Gazing report explains that government tax policies - such as the full expensing allowance for capital investment - have boosted manufacturing investment and that regions such as the North West, West Midlands and South East are now key hotspots for manufacturing growth in the UK.
The report also shows the distribution of manufacturing centres across the UK, with the North West of England now having the largest share of UK manufacturing floor space (16.3%), generating £29.5 billion GVA (gross value added) in output. Meanwhile, advanced manufacturing and pharmaceuticals are highlighted as growth areas and increased defence spending and aviation demand are anticipated to drive future industrial and logistics takeup.
“Opportunities for long term, sustainable income”
The report’s findings reflect trends we have observed at Made in Britain, where members have largely expressed an optimistic outlook despite challenges regarding international trade and economics, and over half (51%) of members surveyed experienced growth in the last year.
Last year, Made in Britain welcomed an increase of 6% in the membership group, up to 2,130 businesses across the UK, suggesting that a growing number of British manufacturers recognise the value in producing goods within the UK and showcasing that value to customers and consumers. We have also seen growth within the regional hotspots identified within this report, with the number of Made in Britain members in the North West, West Midlands and South East growing in number again in the last 12 months.
You can discover the location of all Made in Britain members using our interactive map here.
Partner, Department Head Logistics & Industrial at Knight Frank, Charles Binks said: “Over the past 20 years, I have seen the industrial and logistics market evolve, with growth in retail (particularly online retail) driving demand for fulfilment and B2C distribution. Away from online fulfilment and B2B distribution, we are now seeing additional sources of demand rising out of a growing and evolving manufacturing sector in the UK.
“The locations and specifications of the properties occupied by manufacturers 20 years ago are not (necessarily) the same as those now in demand from these high-growth manufacturing subsectors. These manufacturers have requirements that are as varied, diverse and highly specialised, reflecting the diverse nature of their businesses.
“The sector’s expansion presents opportunities for long-term, stable income, particularly through the growing demand for bespoke, high-specification facilities in strategic locations. By understanding these nuances, investors can position themselves to benefit from this growth in British manufacturing, while also mitigating risks.”
You can read the Knight Frank Future Gazing 2025 report in full here.
By Made in Britain 1 month ago | By Made in Britain