US Export Plan - Sector Report - Engineering and Advanced Manufacturing

Overview

Manufacturing remains vital to the Scottish economy, contributing over £18.1 billion in GVA in 2023 and accounting for more than half of Scotland’s international exports^[1]. The Engineering and Advanced Manufacturing sector is a significant part of this total, and one of the most productive areas of business activity. Advanced manufacturing encompasses the application of innovative technologies like robotics, AI, and 3D printing to create products more efficiently and effectively as well as the production of advanced technology, while engineering also covers the services involved in the design and build of structures, machines, and systems. Engineering services alone accounts for 78,000 employees, representing 3.06% of total employment in Scotland, compared with 2.19% in Great Britain^[2]. Scottish Export Statistics, shows that Engineering and Advanced Manufacturing was the third largest export category to the US, accounting for £1.2 billion in 2023 and representing 18.4% of total exports.

While employment in Scottish manufacturing has declined over the last half century, productivity and innovation intensity remains high and Scotland has developed internationally competitive niches in aerospace, semiconductors and space tech among other areas^[3]. There are also notable hubs of innovation in advanced manufacturing across the country, particularly in the Glasgow City Region and Renfrewshire where the Advanced Manufacturing Innovation District Scotland (AMIDS) is located, home to the National Manufacturing Institute Scotland (NMIS) and Medicines Manufacturing Innovation Centre. These centres are driving advancements in robotics, automation, and high-precision engineering, attracting major players such as Rolls-Royce, Thermo Fisher Scientific, Peak Scientific and BAE Systems to collaborate on groundbreaking manufacturing solutions^[4]. Meanwhile Edinburgh and the surrounding area is recognised for its cutting-edge materials and robotics. Notably, the Arrol Gibb Innovation Campus (ASIC) brings together businesses and academia to drive innovation in high-value manufacturing, composites, robotics, nuclear manufacturing and digital shipbuilding^[5].

There is strong ambition and support from Government to grow the sector. For example, the Making Scotland’s Future programme, has the ambition for Scotland to become the home of manufacturing innovation. A key part of this is NMIS, which works with industry to drive productivity, develop new products and promote sustainable practices.