East Midlands Manufacturing: a dynamic sector driving regional success
As we’re based in Derby which is the heart of the East Midlands (according to Derbians!) what is happening within the manufacturing sector of which we belong and are also proud to serve? This blog takes a look at all the good news stories that have popped up over recent months and what the outlook is for East Midlands manufacturers.
Latest news and Sector resilience
The East Midlands manufacturing sector has continued to outperform national averages despite economic headwinds in 2025. Regional output has grown by over 21% in the past decade, and local manufacturers have shown remarkable adaptability amid rising costs and global uncertainty. Confidence remains fairly high, supported by positive investment intentions, government strategies to boost advanced manufacturing, green technologies, and improved infrastructure.
The latest BDO/MAKE UK report identifies the following ‘The East Midlands is the UK’s eighth-largest region in terms of gross value add (GVA). The East Midlands economy accounts for 5.7% of the UK’s total output, whilst its manufacturing sector accounts for 0.8% of the UK’s total output. However, 14.8% of the East Midlands total output is accounted for by manufacturing. Just under half of the region’s manufacturing output comes from three subsectors. The largest is the Food & Drink industry, with 19.9% of all manufacturing output. This is followed by Transport Equipment at 13.7%, and then the Metal Products subsector at 12.8%’. Bennett Engineering have provided mechanical design engineering services to all of these regions over the years.
Recent developments have included vigorous responses to rising labour costs, the nationwide expansion of support programs for manufacturers of all sizes, and a growing focus on digital transformation, skills development, and sustainability. While large companies like Rolls Royce, Toyota, British Gypsum and Alstom still play pivotal roles, the region’s true industrial strength lies in its vibrant ecosystem of small and medium enterprises (SMEs) and micro-manufacturers.
Chris Corkan, region director for Make UK in the Midlands, said: “Industry remains critical to the growth of the East Midlands economy, providing high value, high skill jobs and aiding the process of creating wealth across the UK.”
Beyond the Giants
The region holds a diverse range of manufacturing businesses, it’s truly amazing on the businesses that can are hidden gems making amazing products or equipment or machinery. Since our move to Derby we’ve been to some amazing places across the East Midlands but in particular in Derbyshire.
Types of manufacturing businesses
The East Midlands is not defined solely by its heavyweights. The business landscape includes thousands of SMEs and micro businesses, creating bespoke components, niche products, and innovative solutions:
Did you know there are over 250 large manufacturers working across aerospace, rail, automotive and energy in the East Midlands?
But there are the same number again in just Derby who are categorised as SMEs? Everything from boutique manufacturers to custom fabricated metalworkers, food production to independent artisans. It’s an eclectic mix!
Key manufacturing segments
Food and Drink: this is the largest segment at 20.6% of the region’s output, ranging from industrial bakeries to craft distilleries and cheese makers. There’s Birds here in Derby as well as Luke Evans
Transportation and automotive: Beyond leading OEMs, many SMEs produce parts, controls, and specialist vehicles for local and export markets. There’s also a lot of tier 1 suppliers into the automotive, rail and aviation industries in the area.
Rubber and Plastics: Encompassing everything from industrial components to packaging firms this is a busy sector here in the East Midlands.
Chemicals: Includes manufacturers of speciality chemicals, adhesives, resins, perfumes, varnishes, and paints.
Pharmaceutical: The East Midlands has several small and large pharmaceutical and medical manufacturing companies. Some are actually making medicines whereas others are manufacturing equipment for the use in hospitals.
Textiles and Clothing: Heritage clothing makers, textiles, and technical fabrics form a resurgent, export-driven sector. Like John Smedley, based in Derbyshire, who manufacture a range of clothing for men and women.
Electrical: There are a number of high-tech sectors in the region, some are manufacturing PCBs whereas others are making alarm systems for homes.
Creative manufacturing: Local businesses making signage, digital-printed products, and innovative components for new industries.
Extractives: The East Midlands is home to a number of quarries, mineral manufacturers and aggregate extractors.
Building products: One of the UK’s largest brick manufacturers is based in Leicestershire next to their clay facilities. There are lots of other manufacturers around the region who are making building products such as roof tiles and cement based products.
Spotlight on SME Manufacturers
The vast majority of East Midlands manufacturers have fewer than 250 employees; micro-firms (fewer than 10 staff) are now supported by new regional initiatives, such as Made Smarter East Midlands, which provides digital technology road-mapping, grant funding, and expert advice. Recent investments in SMEs, such as £1.1m from the Midlands Engine Investment Fund, underscore the commitment to fostering growth and innovation among smaller businesses.
The strategic advantage of Derby
Based in Derby, Bennett Engineering is superbly positioned to serve this dynamic spectrum helping everyone from global giants to innovative startups with bespoke machinery, custom jigs, and access platforms. For some companies we are manufacturing prototypes for them to test and refine other times we are making complex machinery for a specific purpose. Our central location means rapid response, close collaboration, and a shared commitment to the future of East Midlands industry from the two owners of Bennett Engineering.
The East Midlands manufacturing sector continues to thrive not only because of its iconic global brands but also due to the ingenuity and resilience of thousands of SMEs and micro-businesses. Every size and specialty has a role to play in the regional renaissance making this a great time to be involved in manufacturing in the Midlands!
