When people think about London’s economy, manufacturing is not usually the first sector that comes to mind.
Yet more than 14,000 manufacturing businesses operate across the capital, many of them micro or small enterprises concentrated in a number of clusters across the city such as Park Royal (West London), Brimsdown Industrial Estate (North London) and Maker Mile (Hackney, East London). These London firms contribute to a sector valued at £11 billion in 2023, an increase from £10.2 billion the year before.
In London alone, the Food & Drink sector, the city’s largest manufacturing subsector, generated £3.9 billion in 2023, illustrating the scale of enterprises driving the capital’s economy. The numbers may not suggest rapid expansion, but they underline that manufacturing continues to play a steady and important role in London’s economy.
Much of this work happens out of sight, but its impact is everywhere; manufacturing underpins the products and services that keep the city running, from everyday goods to high-growth sectors. For example, AI is one of the most significant emerging trends, and London’s manufacturing firms are starting to explore how it can transform production processes, alongside with technologies such as 3D printing and flexible manufacturing.
Food and drink producers supply restaurants, cafés, and local shops, with more 300 manufacturers in Park Royal and 130 manufacturers based in Hackney alone. Textiles and specialist makers provide costumes and set design for the West End, supported by hubs in Westminster, which is home to around 150 small manufacturing firms. Small engineers and craftspeople across the city also create products that feed into our High Street as well as hospitality, and healthcare. In short, manufacturing in London may not be highly visible, but it remains an essential part of how the city functions. Their work sustains London’s cultural and commercial life in ways that are often overlooked.
Across the UK, manufacturing accounts for over £220 billion of output and provides millions of jobs. Food & Drink is a major subsector in almost every region, supporting local supply chains and jobs. Beyond this, each area has its own specialisation: the North West is strong in Transport Equipment and Pharmaceuticals, the East Midlands in Metal Products and Transport Equipment, and Yorkshire & Humber in Metal Products, Chemicals, and textiles. Together, these regional clusters form the backbone of the UK’s industrial base. London may specialise in smaller, creative, and niche producers, but it is part of this larger national ecosystem that keeps supply chains moving and supports exports around the world.
Programmes such as Made Smarter UK, now extended to London with a £1.25 million scheme, are vital for supporting manufacturers across the capital and the UK. The programme has already supported over 3,000 businesses in other regions of the UK, contributing to more than 1,500 new jobs and generating over £300 million in projected GVA. We will be looking forward to see similar impact of job creation and growth in the capital.
They help SMEs adopt digital tools and new technologies, while providing access to mentoring, workshops, and peer networks. The programme also provides match-funded grants to trial new technologies and funded internships to support the integration of digital solutions. This support allows businesses to tackle challenges such as supply chain disruptions, skills gaps, and rapidly changing markets. In doing so, the programme strengthens local communities and reinforces the foundations of the UK’s industrial base.
While the sector may face some challenges compared to last year, it continues to play a crucial role in the economy. In London, the manufacturing sector accounts for 2.2 percent of total employment and a similar share of GVA, and investing in workforce development and apprenticeships will be key to sustaining this contribution. By equipping young Londoners with skills in engineering, design, and digital manufacturing, we can ensure that businesses have the talent needed to innovate and grow. At the same time, fostering collaboration between manufacturers, universities, and tech providers will help the sector remain resilient allowing even the smallest firms to access tools and expertise that would otherwise be out of reach.
These clusters provide jobs and help keep local economies running, from supplying neighbourhood shops to supporting global industries. With the right support, manufacturing in London can adapt to future demands.
We must continue to invest in our makers. By nurturing talent, supporting innovation, and strengthening local supply chains, we can ensure that making and creating remain at the heart of London’s story and that the sector continues to shape the city’s future. The “Made in London” label is not just a mark of quality; it reflects the creativity and expertise that set the capital apart.
Read more:
Investing in Makers is investing in London’s Future
