Your figures
Annual figures from your latest management or statutory accounts.
Against your sector
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How this works. Gross margin is turnover less cost of sales. Operating margin also deducts overheads. "Middle 50%" is the range between the lower and upper quartile of companies in the sector. The profit opportunity is the extra annual profit at your current turnover if your operating margin matched the sector median.
Sector ranges come from the latest full accounts of 1,848 UK manufacturers filed at Companies House between October 2025 and September 2026 (mostly financial years ending in 2025), grouped by SIC code. Only medium and large companies have to publish a full profit and loss account, so the ranges mostly reflect medium and large firms: about three quarters of the companies used have turnover above £10m, and none below £1m. Each sector shown is based on at least 30 companies.
Typical margins by manufacturing sector
Median and middle 50% (lower to upper quartile) of UK manufacturers' latest full accounts at Companies House. Indicative only: see the notes above.
| Sector | Companies | Gross marginmedian, middle 50% | Operating marginmedian, middle 50% | Turnover per employeemedian |
|---|---|---|---|---|
| Food and drinkSIC 10–11 | 272 | 21.8%12.8% to 32.9% | 3.6%1.3% to 7.5% | £253k |
| Chemicals and pharmaceuticalsSIC 20–21 | 109 | 31.7%20.9% to 42.1% | 5.4%2.1% to 11.0% | £334k |
| Plastics and rubberSIC 22 | 115 | 29.5%21.9% to 38.4% | 7.1%2.0% to 12.5% | £175k |
| Metal products and fabricationSIC 24–25 | 333 | 28.6%19.5% to 37.9% | 4.9%1.0% to 11.2% | £165k |
| Electronics and electrical equipmentSIC 26–27 | 176 | 33.8%23.3% to 46.0% | 5.2%0.5% to 12.6% | £194k |
| Machinery and equipmentSIC 28 | 135 | 31.6%22.1% to 38.9% | 4.2%−0.1% to 10.1% | £208k |
| Automotive, aerospace and transport equipmentSIC 29–30 | 79 | 22.7%14.4% to 31.3% | 5.5%−0.2% to 10.1% | £183k |
| Other manufacturingSIC 13–19, 23, 31–33 | 629 | 29.9%21.3% to 38.4% | 4.9%1.3% to 9.4% | £195k |
Frequently asked questions
What is a good gross margin for a UK manufacturer?
It depends on the sector. Businesses that buy in a lot of material and add relatively little processing, such as food and drink, tend to run lower gross margins than electronics or chemicals. The table above shows the median and the middle 50% for each sector, which is a fairer comparison than an all-industry average.
What is the difference between gross margin and operating margin?
Gross margin is turnover less cost of sales: materials, direct labour and production overheads. Operating margin also deducts overheads such as admin, selling and distribution, so it shows profit before interest and tax as a share of turnover.
Where do the sector benchmarks come from?
From the latest full accounts of UK manufacturers filed at Companies House, grouped by SIC code. Only medium and large companies have to publish a full profit and loss account, so the ranges mostly reflect companies with turnover above £10m.
Why might my margin be different from the sector median?
Product mix, how much of the process is done in-house, company size and accounting policies all move margins. In particular, businesses differ in which costs they put in cost of sales and which in overheads, so operating margin is often the more reliable comparison.
Are the figures I enter stored?
No. The calculation runs in your browser and nothing you enter is sent to CostVantage or saved.