Sectors

Manufacturing

In 2024, the UK manufacturing industry is navigating a challenging landscape marked by slow growth and economic uncertainty. The sector’s output is projected to amount to $647 billion, with a compound annual growth rate of 0.76% expected from 2024 to 2029. Employment in the industry stands at over 2.5 million people, and manufacturing accounts for 51% of all UK exports. Despite these figures, the industry is facing stagnation, with growth expected to remain flat at 0.1% for the year.

The sector also represents 15% of total UK business investment and 64% of all UK business research and development (Statista, 2024; BDO, 2024; Make UK, 2024).

The number of enterprises in the manufacturing market is projected to reach 131,800 in 2024. While the industry shows resilience, significant geopolitical and economic risks continue to pose challenges, impacting demand and supply chain stability (Statista, 2024; RSM UK, 2024).

Payroll Insights:

Only 12.5% of manufacturers are making digital technology central to their strategies, highlighting a need for greater adoption of digital payroll systems to improve efficiency and accuracy (PwC, 2024).
The evolving regulatory landscape requires manufacturers to stay updated with new payroll laws and regulations, which can be complex and time-consuming (Accounting Web, 2024).
UK manufacturers outsource payroll to cut costs and boost efficiency without significant internal investments (Truelist, 2024).

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