The quiet triumph of British engineering: Competitive advantage in premium cars, civil aerospace and power machinery
Phil Radford, October 2025
In this report, Phil Radford questions why the UK’s approach to trade has such little focus on our fastest‑growing exports and why debate is not better informed on the location of the country’s future growth markets. Could policymakers answer the basic question: ‘What are the UK’s fastest-growing exports?’
Through analysing 25 years’ worth of UK trade data, Radford identifies three engineering industries where UK companies have built competitive advantage: premium motor vehicles, civil aerospace and specialist machinery (especially construction, mining and power-generating machinery). For these ‘Big Three’ industries, UK exports to global, non-EU markets have grown extraordinarily fast since the turn of the century. Non-EU markets now take most UK exports – something that will only accelerate if UK companies can continue long-term growth rates in the fast-growing markets.
Focusing on competitive advantage, because that’s what ultimately helps to generate export-led growth, Radford identifies the source of UK competitive advantage in those subsectors of the Big Three industries where UK exports are growing fastest. A number of important traits emerge, including where design, customisation and craftsmanship are UK differentiators; where technical leadership in niche subsectors helps to deliver growth; and the vital importance of small and medium-sized enterprises (SMEs) in supply chains.
In highlighting key observations on the source of the Big Three industries’ existing competitive advantage, this report aims to help the Government develop a clear policy for both its industrial and trade strategies. The key takeaway is that the Government needs to act strategically if it wants to promote UK export growth both now and over the long term.
UK engineering is in far better shape than it appears, argues Radford, because in past decades the auto, aerospace and machinery industries developed global competitive advantage in subsectors that are set for rapid growth over the next five years. If the Government focuses support on SMEs in those supply chains, our export industries should grow rapidly.
Civitas researcher, Daniel Dieppe writes in CityAM, ‘Whisper it: British manufacturing has been a quiet Brexit success story’
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