East Midlands Manufacturing 2025

EMBS Managing Director, James Hall, looks at the latest update on the East Midlands manufacturing sector in 2025.

As a leading recruitment specialist in East Midlands manufacturing, I live and breathe the region’s industrial pulse.

This week, the BDO Regional Manufacturing Outlook 2025 report landed on my desk. Warning, it’s not for the faint hearted and it is definitely not a bed of roses out there. Although, perhaps you didn’t need me to tell you that.

However, the report does offer a crucial look at our sector. It reveals a compelling narrative of unwavering resilience, dynamic strategic evolution and the ongoing hurdles that are actively shaping the landscape for both our local employers and the talented individuals seeking their next career move.

The National Picture

Nationally, the manufacturing sector has shown commendable adaptability in the face of post-election policy shifts. The Autumn Budget of 2024, with its increases in the National Minimum Wage and employers’ National Insurance contributions, undoubtedly presented a significant rise in business costs. Manufacturers have responded with increased prices, a more cautious approach to hiring and limited wage rises. It’s positive to see that substantial workforce cuts have largely been avoided, a testament to the persistent challenge of labour shortages.

Across the UK, the good largely outweighs the bad. Most regions have reported growth in output and orders, with the South West excelling due to strong public support for its dominant aerospace and defence sectors. The North West leads in investment intentions, solidifying its manufacturing powerhouse status, while the East of England shows improved confidence in capital investment. This national trend of focusing on sustainability, digital solutions like AI and upskilling the workforce is encouraging and aligns with the Government’s new Industrial Strategy.

However, what we’re really interested in, is how the East Midlands is performing.

The East Midlands

The East Midlands, accounting for 5.7% of the UK’s total GVA and 14.8% of its own output from manufacturing, remains a crucial industrial hub. Our strengths lie significantly in Food & Drink (19.9% of manufacturing output), Transport Equipment (13.7%), and Metal Products (12.8%).

Disappointingly, the report highlights a distinct ‘flatness’ in our region’s performance regarding output and orders. While not a negative, this ‘no-change; status places the East Midlands as the second least performer in these core metrics compared to other regions.

This can be partly attributed to the subdued growth, or even contraction in some instances, seen nationally within the Basic Metals and broader Metal Products subsectors, which are significant contributors to our regional output.

A more concerning statistic for the region is the decrease of 12,000 manufacturing jobs in the last 12 months, bringing the total to 261,000. This drop, while potentially a response to rising labour costs, signals a tightening job market for some roles.

On the export front, the East Midlands continues to be a strong contributor, accounting for 7% of the UK’s total goods exports. Our increasing reliance on the EU (43% of exports) is notable, alongside strong ties with Asia & Oceania (30%) and North America (15%).

Productivity in the East Midlands manufacturing sector, at 91.4% of the UK average, ranks 9th. While there’s room for improvement, the region’s business confidence score has seen a marginal uptick to 6.5, just shy of the national average of 6.7. This sustained positivity, despite pedestrian performance in output and orders, reflects a pragmatic optimism and a willingness to adapt.

Implications for Employers

Despite the recent job decline, historic labour shortages persist. Employers must focus on retaining their skilled workforce and actively invest in upskilling programs to meet the demands of an evolving, more digitalised manufacturing landscape. The new Industrial Strategy’s focus on skills support is a welcome development.

My Message for Job Seekers

For job seekers, the message is clear: upskill or get left behind. Investing in relevant training or cross-functional training and certifications in other areas won’t just boost your CV, it’ll significantly enhance your employability.

Manufacturing is in constant motion. Adaptability and a hunger for new tech are your biggest assets. Proactively developing your skills will make you a highly sought-after candidate. While Food & Drink, Transport Equipment, and Metal Products remain the bedrock of East Midlands manufacturing, understanding their individual trajectories and specific skill demands within each is key.

Despite a recent dip in regional manufacturing jobs, this sector remains a vital employer. The overall positive outlook for UK manufacturing, coupled with a keen eye on future investment, indicates that strong opportunities will continue to emerge for those who are skilled and adaptable.

What’s Ahead?

The East Midlands manufacturing sector, like the wider UK industry, is at a pivotal moment. The government’s commitment to an Industrial Strategy focusing on energy cost support, skills, and access to finance is crucial. For our region to move beyond its ‘flat’ performance and fully leverage its strengths, proactive investment at the firm level, aligned with these strategic priorities, will be paramount.

As a recruitment specialist, I remain dedicated to connecting the talented workforce of the East Midlands with the innovative businesses driving the region’s manufacturing future. The coming months will be key in translating confidence into tangible growth and ensuring our region continues to be a vibrant and productive part of the UK’s industrial landscape.

Connect with James Hall.