Research has confirmed that UK manufacturers are committed to servitising their business model.
The ‘Moving up the Value Chain: UK Manufacturing’s Servitization Journey’ report, has published research conducted by The Manufacturer and Salesforce in a second annual survey of UK manufacturers on Servitization. 66 manufacturers completed the survey and 95% of those responding had already adopted or were considering servitizing their business model. The same survey in 2016 found that only 54% were in this position, demonstrating the increased profile of servitization for the sector over the last 12 months.
Drivers include higher margins, competiveness and customer demands
Key drivers for businesses to adopt this model are higher margins, remaining competitive and customer demand, which suggest that manufacturers could quickly tap into their existing customers to test this model.
Primary barriers to adoption are people skills and change management, though those that have already adopted servitization highlighted additional barriers in supply chain integration, data silos and inadequate technology.
Two thirds of respondents were already benefiting, or expected to see benefit from servitization by the end of 2018.
To download the report visit The Manufacturer website.
Businesses that are considering implementing a servitization model can access support to do this, either through fully funded one-to-one support or via grant funding. If you would like to enquire about this, please complete this form and our specialist Manufacturng Team will get in touch.
The ‘Moving up the Value Chain: UK Manufacturing’s Servitization Journey’ report was published on The Manufacturer website.