Manufacturing is often misunderstood, underestimated, and pushed out of cities. Is this justified, or can a solid industrial sector bring real value to our urban centres? Decide for yourself when you check out these facts and figures.

Current Trends

• The European Commission aimed to increase the share of Europe’s GDP originating from industry to 20% by 2020. (Unfortunately, they did not hit this target – potentially due to the economic repercussions of the Covid-19 pandemic.)
• Eight of the top 20 countries ranked by manufacturing output are in Europe.
• In Germany, 1 in 3 companies produce in Europe. Reasons for doing so include access to and protections for quality standards, lead times, intellectual property, research and development, and skills and knowledge. Threats from international regime change of trade policy also encourage reshoring.
• Urban manufacturing is popular. A survey found that:
  • 26% of people regularly make things for themselves,
  • 57% want to learn how to make things for themselves and their loved ones,
  • 24% are interested in using shared workshop spaces.

The Economic Value

• Manufacturing significantly contributes to Europe’s economy. In 2014, the sector generated more than €1.7 billion of Gross Value Added (GVA) and – in the EU-10 alone – employed 30 million workers.
• In 2014, industry produced 80% of European exports.
• A study in the UK found that manufacturing accounts for at least 9% of the country’s GDP and offers between 2.6 million and 7 million jobs (depending on what sub-sectors are factored in).
• Even though a lot of the UK’s manufacturing base has been outsourced, it contributes four times more to the GVA than the country’s financial core.
• [IF1] A study in the US found that each dollar invested in a locally manufactured good results in $1.33 additional output. This is more than twice that of the retail sector ($0.66).

Urban Manufacturing Under Threat

• In the last 50 to 70 years, many cities were deindustrialised, outsourcing manual jobs, technical knowledge, and innovation.
• Between 1997 and 2011, the productive surface area in the Brussels-Capital Region shrunk by more than one million square metres. That’s the equivalent of 140 football pitches.
• In one case study, over half the companies questioned said they felt pressured to relocate due to urban regeneration.

The Environmental Benefits

• According to estimates by the World Bank, municipalities spend 20% of their budgets on handling waste. Creating a circular economy around urban manufacturing could massively decrease these expenses.
• In Europe, industry consumes 25% of energy and produces 10% of greenhouse gas emissions. Globally, these figures rise to 37% and 24% respectively. One must take into consideration, however, that many European goods are produced offshore.
• New technologies, like 3D printing in metal or woodwork, can massively reduce material losses.

Fun Facts: Surprise, Surprise!

• Urban manufacturing does not necessarily locate on large industrial estates. Many companies are SMEs with fewer than 250 employees or micro-businesses with fewer than 10.
• Possibly surprisingly, urban manufacturers care about their community. A UK research project found that 80% of small businesses were involved in the local community, and 30% employed people with disabilities.