The State of UK Fashion Manufacturing: A Sector Poised for Resurgence

By Fashion-Enter Ltd | Research compiled by Beth Day-Day

After decades of offshoring and shrinking domestic production, the UK fashion manufacturing sector is witnessing early signs of resurgence. While still representing a relatively small share of the wider £62 billion UK fashion and textiles industry, new data compiled over the last two years paints a picture of an industry with untapped potential—especially in light of emerging procurement reforms, local innovation, and growing demand for sustainable supply chains.

1. Economic Contribution and National Value

The UK fashion and textile sector is a major contributor to the national economy. As of late 2023, it contributed £62 billion to UK GDP, supported 1.3 million jobs, and generated £23 billion in tax revenues. Within this landscape, fashion manufacturing remains a smaller sub-sector but holds promise for rapid expansion with targeted investment and procurement support.

2. Manufacturing Footprint and Capacity

Despite years of offshoring, the UK’s apparel production ecosystem remains active. As of June 2024, UK clothing production was valued at £158 million, a figure that remained stable across the year. Employment data reveals that 1,700 people are currently employed in domestic apparel manufacturing, while over 43,500 people work in textile manufacturing across the country. This signals a robust foundation of skills, facilities, and heritage brands—many of which are ready to scale up if conditions allow.

3. The Case for Re-shoring and Innovation

Today, less than 3% of clothing worn in the UK is actually made here. However, this is beginning to shift. The Leicester Made trade show, launched in May 2025, highlighted the expanding network of ethical garment factories, digital micro factories, and circular economy leaders operating across the UK. This event signalled real momentum behind re-shoring, and it attracted interest from major brands seeking lower-carbon, transparent, and flexible supply chains.

Legacy manufacturers like John Smedley are reinvesting in domestic capacity, reaffirming the value of British craftsmanship. Meanwhile, AI-powered micro factories are beginning to offer viable solutions for on-demand, localised production—significantly reducing waste and long lead times. These developments are not just niche innovations; they represent a viable path forward for a more sustainable, resilient UK fashion ecosystem.

4. Procurement: The Lever for Jobs and Growth

Strategic procurement has the power to transform UK fashion manufacturing. According to the UK Fashion and Textile Association (UKFT), reforms in procurement policy that support domestic production could unlock:

• £3.1 billion in additional GDP
• 64,000 new jobs
• £1.2 billion in tax receipts

The opportunity to act is now. The Procurement Act 2023, effective from February 2025, enables public bodies to give greater weight to ethical sourcing and local manufacturing in procurement decisions. This legislative shift opens the door for policymakers and brands alike to actively prioritise UK-based production in their supply chains.

UK fashion manufacturing is no longer a story of decline—it’s a sector at the threshold of renewal. With the right procurement strategies, policy frameworks, and investment in local capacity, the UK can rebuild a modern, ethical, and scalable fashion manufacturing base.

Fashion-Enter Ltd—as long-standing advocates for ethical, local fashion production—calls on government bodies, retailers, and designers to take a proactive role in reshaping the industry. Now is the moment to reconnect with the UK’s rich manufacturing heritage and future-proof it for the generations to come.

Sources:

Procurement Act 2023 Overview – Wikipedia (2025)

UKFT Industry Footprint Report (2023)

IBISWorld: Clothing Manufacturing in the UK (2024)

IBISWorld: Textiles Manufacturing in the UK (2024)

FT: John Smedley brings manufacturing back to the UK (2024)

Vogue Business: Could AI hold the key to bringing fashion production closer to home? (2024)

UKFT: Key Government Asks for UK Manufacturing (2024)