By Geoff Crossley, Manufacturing Sector Development Lead, GM Business Growth Hub
As the UK continues to grapple with regional inequality, new data suggests that Greater Manchester may be turning the tide — and manufacturing is at the heart of it. Greater Manchester has emerged as the UK’s productivity growth capital, according to new data from the Northern Powerhouse Partnership (NPP), which shows a 31% increase in productivity (measured by GVA per hour worked) between 2004 and 2023 — the highest of any UK region or mayoralty.
This remarkable performance is no accident. It reflects a long-term strategy of investment in infrastructure, skills, and innovation — and, crucially, the region’s high concentration of advanced manufacturing businesses that continue to drive economic resilience and transformation. At GM Business Growth Hub, we’ve seen first-hand how targeted support and sector-specific expertise can help manufacturers unlock their full potential.
Manufacturing at the Heart of Growth
While Greater Manchester is recognised for its long-standing strength in manufacturing and engineering, it is the continued evolution of the sector that underpins its recent productivity gains. The latest MHA Manufacturing Report 2025 reinforces this, highlighting that despite economic headwinds — from Brexit to inflation and global supply chain shocks — UK manufacturers remain optimistic, with 77% expecting growth in the next 12 months.
In Greater Manchester, this optimism is grounded in reality. The region’s manufacturers are not only surviving but thriving by investing in competitiveness and productivity. Different areas across Greater Manchester have recorded average productivity growth above 25% (from 2004 to 2023), showing that this is a broad-based regional success story — one that GM Business Growth Hub is proud to support through tailored business advice, innovation programmes, and workforce development.
A Model for Regional Resilience
The NPP’s analysis of ONS data shows that Greater Manchester’s productivity growth outpaces even London and the South East. This is a powerful counter-narrative to the long-standing North–South divide and a testament to the impact of devolution, targeted investment, and industrial strategy.
Andy Burnham, Mayor of Greater Manchester, captured this sentiment, stating:
“This data shows that Greater Manchester is leading the way in closing the North–South divide. It’s a vindication of our long-term approach to economic development — investing in people, places, and the industries of the future.”
Beyond the Stereotypes
Manufacturing today is dynamic, high-tech, and resilient — a sector defined by innovation, precision, and long-term value. Yet despite this reality, it is still too often viewed through an outdated lens. In Greater Manchester, however, the true story is being written. The sector is capital-intensive, yes — but that’s precisely what gives it the resilience to ride out economic turbulence, especially when it is locally owned and managed.
It provides long-term, high-value employment and anchors local supply chains, supporting a diverse and balanced economy. Through our work with hundreds of manufacturers, GM Business Growth Hub continues to champion this modern narrative — helping businesses adopt digital technologies, improve operational efficiency, and build sustainable growth strategies.
A Call to Action
The data is clear: manufacturing is driving productivity and regional growth. But this momentum cannot be taken for granted. The MHA report warns that rising taxes, regulatory burdens, and skills shortages remain significant challenges. Many manufacturers are scaling back investment in R&D, AI, and technology — precisely the areas needed to secure long-term competitiveness.
To maintain momentum, the sector needs:
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Policy stability and a long-term industrial strategy that supports investment.
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Targeted support for SMEs, especially on R&D and energy costs.
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Stronger partnerships between industry, education, and government to close the skills gap.
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Incentives for digital transformation, helping manufacturers adopt automation, sustainable practices, and support in-house innovation.
Greater Manchester’s story is a blueprint for how manufacturing can power inclusive, long-term economic growth. The data tells us where we’re headed — but it’s action that will determine whether we get there.
How GM Business Growth Hub Can Help
For manufacturers in Greater Manchester looking to enhance productivity, efficiency, and resilience, our dedicated team of manufacturing specialists is here to help. From lean operations and digitalisation to workforce development and sustainability, we offer tailored support to help businesses thrive.
👉 Visit our manufacturing support page:
📞 Or call us on 0161 359 3050 to speak with one of our advisors.
Let’s ensure manufacturing remains not just part of the story, but the foundation of the North’s economic future.