With predictions that British manufacturers are potentially set to increase their productivity by 15.5% over the next five years, boosting exports by 35%, the UK is holding its own on the global stage. Indeed, such is the strength of the industry that manufacturing is projected to deliver 40% of Britain’s productivity gains over the next decade.
But the industry’s capacity to fulfil these predictions rests in its ability to embrace technological advances. Two thirds of manufacturers polled in a survey by EEF say that UK manufacturing’s ability to compete globally will depend on keeping up with technology, and that rapid advances in technology will play to Britain’s strength as a high value manufacturer. But, despite this sentiment, 58% claim keeping up with technological advances is a major challenge.
Technology has become a key driver of growth and competitive advantage in the same way that new skills or new production equipment might be. Every business decision now includes IT as a critical component – whether it is a new plant in China, managing a global supply chain, introducing a new service for customers or even contemplating a merger or acquisition.
And this trend is set to accelerate as a result of a new technological revolution – Industry 4.0 – which enables manufacturers to deliver high levels of productivity, while at the same time driving innovation and enhancing service levels. Industry 4.0 brings far greater speed and intelligence to operational decision making, establishing sufficient agility to boost productivity while delivering innovation and service.
The ‘cloud’ expedites this approach further, enabling manufacturers of all sizes to access revolutionary technology, on demand. Smaller manufacturers can now have access to the same sort of technologies as their larger competitors. This means they can rapidly grow their businesses without growing their headcount and cost base.
But, according to EEF’s research, the UK is in danger of lagging behind in embracing this revolution with six in 10 manufacturers concerned of the risks of being left behind. Against a backdrop of solid productivity growth and faced with the opportunity and the right tools to exploit new capabilities, UK manufacturers cannot afford to wait. Waiting until 2025 to capitalise on this opportunity might well be too late.
