UK Industry Sectors

Historically, the UK has been one of greatest economic influencers in the world. As the epicentre of the first Industrial Revolution during the 18^th century, the UK ushered in what economic historians agree to be the most significant event in mankind’s history since the dawn of agriculture.

Historically, the UK has been one of greatest economic influencers in the world. As the epicentre of the first Industrial Revolution during the 18^th century, the UK ushered in what economic historians agree to be the most significant event in mankind’s history since the dawn of agriculture.

The Industrial Revolution changed how agriculture, industries and services functioned – dramatically increasing the rate of production and efficiency while facilitating the growth of globalisation. The Industrial Revolution also saw the advent of many new industries in the UK, some of which remains highly important even today.

UK’s Industry Sectors

Industries were responsible for 21.1 percent of UK’s GDP in 2012. The list of industries include machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, and other consumer goods.

Manufacturing of goods is particularly important for UK industries. The UK is the sixth-largest manufacturer of goods in the world according to the value of its outputs. Within manufacturing, the production of automotive or aerospace equipment is a major contributor to UK industries. UK’s aerospace industry is the second largest in the world with companies such as BAE Systems (the world’s second largest defence contractor), and Rolls-Royce (the world’s second largest aircraft engine maker) boasting annual turnovers of around £20 billion.

Agriculture has also strongly benefitted from the Industrial Revolution. Despite only contributing to 0.7 percent of UK’s GDP, Agriculture is still considered an important part of the UK’s economy and society as it produces 60 percent of the UK’s food needs with less than 1.4 percent of the labour force. Agriculture in the UK is highly mechanised and efficient, combining advanced technology with modern farming techniques. Agriculture in the UK is also highly subsidised, both by the UK government and the EU’s Common Agricultural Policy.

However, despite the historical importance of agriculture and industries, services is the dominant component of UK’s economy, contributing to 78.2 percent of the nation’s GDP. Finance and banking are by far the UK’s most important services with London being one of the three major economic “command centres” alongside New York City and Tokyo. Important financial institutions located within London include the London Stock Exchange, the London International Financial Futures and Options Exchange, the London Metal Exchange, Lloyds of London, and the Bank of England.

Read more about the UK’s economy, including industry information, featured analysis and trade statistics below.