Advanced manufacturing

Statistics on employment, business numbers and GVA for advanced manufacturing

Introduction

Advanced manufacturing is a cornerstone of the North East economy, underpinning productivity, innovation, and export strength across the region. This evidence base provides an up‑to‑date overview of the sector, drawing on official data to highlight its scale, specialisms, and economic contribution.

The sector spans a diverse mix of high‑value activities, including chemicals and pharmaceuticals, electrical and electronic equipment, machinery, motor vehicles, and other transport manufacturing. These industries are shaped by cutting‑edge processes, technological development, and the region’s established expertise in engineering and production. Together, they reflect the North East’s long‑standing industrial capabilities while showcasing its transition toward more specialised, knowledge‑intensive manufacturing.

This page brings together detailed evidence on employment patterns, business density, subsector strengths, and economic output (GVA). It also illustrates geographic concentrations of advanced manufacturing activity across the region. By combining national datasets with local analysis, the evidence base supports a clear understanding of how advanced manufacturing is evolving—and where opportunities lie for future growth, investment, and innovation in the North East.

Defining the sector

The North East Local Growth Plan, published in March 2025, identifies advanced manufacturing as a sector where the North East has unique economic assets and opportunities. The UK's Modern Industrial Strategy, published in June 2025, includes it as one of the nation's eight growth-driving sectors (the 'IS8' sectors).

The UK Industrial Strategy's sector plan considers that advanced manufacturing has production processes that integrate advanced science and technology. It notes that examples of such activities can be found across the range of manufacturing, but defines a measurable proxy for advanced manufacturing based on subsectors. This uses the Eurostat and UN definition of high and medium-high technology manufacturing. There are seven broad manufacturing subsectors identified in this way (with the two digit UK SIC codes in brackets):

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Chemicals and chemical products (20)

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Pharmaceutical products (21)

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Computer, electrical and optical products (26)

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Electrical equipment (27)

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Machinery and equipment (28)

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Motor vehicles (29)

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Other transport equipment (30)

The UK Industrial Strategy does not include pharmaceutical products within its definition of advanced manufacturing but defines it as part of the strategy's Life Sciences sector. It does, however, include the manufacture of computer equipment, despite this also being within the strategy's Digital and Technologies sector. This report includes data based on the seven broad subsectors listed above but will also include some information that matches the UK strategy's six-sector IS8 definition.


North East employment

34,000

employment in advanced manufacturing

NE registered enterprises, 2024.
40% of manufacturing employment.
Motor vehicles: 11,000;
general machinery and equipment: 8,000.

13,000 advanced manufacturing employment in Sunderland

2024, survey based total.
County Durham: 10,000;
Other five local authority
areas: each <3,600

3.9%

of total employment

NE registered enterprises, 2024.
Higher than national rate (2.3%);
third among the 15 CA areas;
Sunderland: 10.9%.

-4,000

change in advanced manufacturing employment

NE registered enterprises.
2015 to 2024: 11% decrease.
A larger percentage fall than
nationally (-5%)


North East business count

555

advanced manufacturing businesses

NE registered enterprises, 2025.
Based on a single classification.
155 in County Durham;
100 in Northumberland.

190

general machinery and equipment manufacturers

NE registered enterprises, 2025.
100 manufacturers of computer,
electronic and optical products;
80 electrical equipment manufacturers.

17.0%

of advanced manufacturing enterprises either medium-sized or large

NE registered enterprises, 2025.
Medium-sized: 50 employees or more.
GB, advanced manufacturing: 9.7%;
NE all sectors: 2.3%

1,433 more broadly defined advanced manufacturing enterprises

An estimate of companies that work in
advanced manufacturing to any extent.
From Companies House data and
corporate website information.


Economic output (GVA)

£5.5 bn

North East advanced manufacturing GVA

2023 estimate,
10.5% of total GVA,
68% of manufacturing GVA,
England 4.4% and 49%.

5.9%

of England's advanced manufacturing GVA

North East manufacturing, 2023,
10.2% of England's GVA from
chemicals and pharmaceuticals.
6.7% of that from motor vehicles.

+32%

five year change in advanced manufacturing GVA.

North East, 2018-23.
Only a 1% increase in the
previous five years (2013-18).
Real totals, exc. inflation effects.

+£1.5 bn

ten year change in chemical and pharmaceutical GVA

NE manufacturing, 2013-23.
Motor vehicles +£0.3 bn GVA,
other subsectors -£0.6 bn.
Real totals, exc. inflation effects.


Employment location maps

These maps are based on information from the 2024 ONS Business Register Employment Survey (BRES), the official government source of employee statistics by industry.

The maps show estimated employment totals in advanced manufacturing PAYE/VAT registered businesses.

The geography used is the North East's 253 middle layer super outrput areas (MSOAs). These areas are designed to be approximately equal in population size and to be consistent over time in a way that council wards are not.

Employment in this dataset includes employees and working proprietors. The published employment totals are rounded to the nearest five.

Each business is classified in a single industrial sector. The source of broader, overlapping, classifications (Data City) does not yet have useable local employment estimates.

Advanced manufacturing - total

Map of employment locations for advanced manufacturing

Map contains data from the Office for National Statistics licensed under the Open Government License v.3.0

 

Motor vehicles

Map of employment locations for motor vehicle manufacture

Other transport equipment

Map of employment locations for transport equipment manufacture excluding motor vehicles

Electrical equipment

Map of employment locations for electrical equipment manufacture

Computer, electronic and optical

Map of employment locations for manufacture of computer, electronic and optical products

Machinery and equipment

Map of employment locations for machinery and equipment manufacture, excluding transport, electric, computing and electronic equipment

Chemicals

Map of employment locations for chemical and chemical product manufacture

Pharmaceutical

Map of employment locations for pharmaceutical manufacturing


Further information