Guest article: Why manufacturing matters to Northern Ireland

Northern Ireland has a rich and diverse manufacturing sector that has been instrumental in shaping our economy. From aerospace engineering to food production, our region is home to some of the most innovative and successful manufacturers in the world.

What is clear from the return of President Trump is that manufacturing matters. Those economies who still make things are the strongest economies. It matters for jobs for those communities feeling left behind, for ensuring the United Stated has a security of supply of the things their people and place need.

Our plan locally is to have good, regionally dispersed jobs in increasingly productive and decarbonised industries.

Most are our makers. Almost exclusively outside of Belfast, providing those good jobs in places people want to call home. 

Our regional economy is a manufacturing economy.

It is why we mark the month of May as Manufacturing Month. Celebrating the sector, it’s great leaders and businesses and providing the challenge to them to make a bigger impact on our community.

As part of that month, and supported by AMIC, Barclays, Go Succeed, KPMG, Mills Selilg, Vickerstock and Reliance Automation, we have published a major piece of economic analysis on the impact of the manufacturing community on the local and very local economy. 

At just over £6 billion, manufacturing accounts for 13.4% of local economic output compared to a UK figure of 9.8%, is the second largest sector in terms of its economic contribution and has one of the largest shares of manufacturing enterprises in its business base across the UK regions. While it accounts for just 6% of the total private sector business population, it contributes 17% of jobs and 21% of turnover.   

Manufacturing is now back to almost 100,000 direct jobs.   

With around 70% of manufacturing taking place outside of Belfast, it’s impact on local economies is more pronounced with, for instance, half of jobs in Mid Ulster and 4 in 10 jobs in Mid and East Antrim and Armagh, Banbridge and Craigavon Council areas dependent on the sector. 

It directly contributes more than £2.9 billion in wages and a further £2.3 billion through jobs wholly supported job in the supply chain and £0.9 billion through induced effects.  

Estimates suggest that every £1 million GVA that the sector generates, a further £0.7 million is indirectly generated elsewhere in the economy rising to £1.7 million of additional value supported in the wider economy through indirect and induced effects.   

Including all three channels of economic impact the total contribution of manufacturing to the Northern Ireland economy is over £16 billion.

96% are SMEs, almost exclusively homegrown, with their share of turnover rising from 19% in 2015 to 23% to in 2023. The sector is overwhelmingly made up of local entrepreneurs, who need nurtured to continue to support a wage to ‘hard working families’, in every urban and rural area.

Whilst 1% of manufacturers are large (more than 250 employees), they account for almost half of employment and more than half of turnover. Largely manufacturing primaries, these firms are highly sensitive to economic shocks and global cost competition making them mobile. So, we must remain vigilant of world events and now double down on reducing costs, particularly energy prices.

It provides our largest trade balance across local industries by a considerable margin, at £3 billion in 2022, highlighting its importance as the key net exporter of goods and services.  

Northern Ireland is the only UK region to continue to see a rise in the value of export sales to the EU. Dual market access, for now, is providing a net benefit to our economy and businesses. 

Government policies, national and local, and world events shape the fortunes of the sector, but it is our great businesses making great products who create the wealth and work enjoyed across every constituency. 

Manufacturing matters not just in the Midwest of the United States but in Mid Ulster, in Newry and in Derry, in Ballycastle and Belleek and everywhere in between. These are good, regionally dispersed jobs and increasingly productive and decarbonised businesses. They strengthen our economy, solve problems for customers at home and abroad and provides work in place where people want to call home.

Stephen Kelly is the Chief Executive of Manufacturing NI, a membership organisation that represents and supports the manufacturing sector in Northern Ireland.