Productivity growth and regional reindustrialisation: UK evidence

The re-emergence of industry – a process known as ‘reindustrialisation’ – has been widely acknowledged, especially in the United States and Europe. However, there are unanswered questions about the extent of any recent industrial revival in the UK. We present new evidence on reindustrialisation within and across UK regions. Our measures of reindustrialisation reveal that most regions outside London have reindustrialised to some extent. Furthermore, we explore regional reindustrialisation-growth patterns within the context of the UK’s longstanding spatial divide in productivity. Our results highlight that manufacturing can still be a dynamic force in the UK economy when supported by appropriate regional policies.