US falls from top three UK growth markets
The US has dropped out of the top three growth markets for UK manufacturers in an uncertain market report from Make UK.
Make UK reports the US will be overtaken by Asia/Oceania and the Middle East, as export optimism fades in the face of tariffs and rising uncertainty.
Make UK and BDO's Manufacturing Outlook 2025 Q2 report, also finds that six in 10 companies expect their export volumes to the US to be hit.
Additionally it is reported that a third of companies are rethinking their supply chains, with over a quarter exploring new markets – while just 4% plan to invest in US manufacturing.
It shows output volumes have grown following a contraction last quarter, while overall export orders have recovered, though domestic orders are negative.
Employment levels are reportedly remaining stable, with investment trending sharply downwards and manufacturing growth forecasts cut sharply for 2026, after being negative for 2025.
‘While at first glance the headline numbers may not look too bad, manufacturers are facing a gathering storm of huge uncertainty in one of their major markets, a skills crisis and eye-watering energy costs which are providing a harsh reality for many,' comments Seamus Nevin, Chief Economist, Make UK.
‘In response, it’s absolutely essential that the forthcoming Industrial Strategy takes bold measures to bring down the cost of energy and takes equally bold action to ensure companies can access the people they need to take advantage of a more competitive landscape.
'If these two issues are not addressed, then we will face the serious prospect of the UK accelerating into de-industrialisation.’
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