UK could leapfrog manufacturing rivals within a year
12 March 2020
New research shows that the UK could move from eighth largest manufacturing nation to fifth by 2021 if digital technologies and green trends are harnessed effectively.
The global report, commissioned by Sage, shows that there is a window for the UK to re-establish itself as one of the world’s top manufacturing countries by expanding the use of Industry 4.0 technologies such as artificial intelligence (AI), the Internet of Things (IoT), 3D printing and robotics.
The future success of British manufacturing will also be affected by the response to trends in sustainability, the report argues. In particular, adopting waste-eliminating ‘circular economy’ and servitisation strategies were found to be critical in driving new revenue and profitability opportunities.
Nearly all (96 per cent) of the UK manufacturers surveyed as part of the research said they had been impacted by green manufacturing trends, with 79 per cent saying they had adopted systems to eliminate waste and recycle existing resources.
The vast majority believed the transition away from traditional ‘take-make-use-throw away’ business models to more circular alternatives would be a net benefit to their business from a brand reputation and profitability perspective. Precisely two thirds said they had a servitisation strategy to expand their product lines with service-based solutions - more than double the number of North American respondents (28 per cent).
Sabby Gill, Managing Director, UK and Ireland at Sage, commented:
“It is exciting to see the opportunity for the UK manufacturing sector to grow and expand its position globally, especially in light of the political and economic uncertainty we’ve experienced in the UK. While sustainability will remain a challenge for the sector, our research indicates that British manufacturers are embracing it and looking at new models, including the circular economy and servitisation, for growth.
“The sector will need to address outdated business models and technology and a lack of IT infrastructure to capitalise on this opportunity. Using data more effectively will enable them to be more agile in the way they source, design, make and recycle their products.”
Tim Figures, Director of Industrial Sectors, Technology and Innovation at Make UK, added:
“By better analysing data, manufacturers can better predict demand, which would help them drive down product wastage and improve productivity. The smart use of technology - and above all data - has the potential to unlock significant improvements in productivity, hone their supply chains and explore more sustainable and digital business models.”
You may also like...
UK manufacturers asked to help produce ventilators
The Prime Minister has spoken to over sixty of the UK’s leading manufacturers in an effort to step up the production of ventilators, and put a national call out for companies able to help.
UK could leapfrog manufacturing rivals within a year
New research shows that the UK could move from eighth largest manufacturing nation to fifth by 2021 if digital technologies and green trends are harnessed effectively.
Manufacturers share their outlook for 2020
Over 350 UK manufacturers contributed their perspective on topics such as digitalisation and skills in The Manufacturer’s Annual Manufacturing Report 2020.
Manufacturers respond to COVID-19 challenge
Manufacturers across the country, including a specialist springs manufacturer in Rochdale, have answered the call to help produce ventilators and other medical products like hand sanitiser.
Industry gears up for International Women in Engineering Day
International Women in Engineering Day (INWED) on 23 June will celebrate the impact of female engineers across the globe and highlight the exciting career opportunities available to young women.
Guide to 2020 salary and skills trends in manufacturing
Recruitment firm Michael Page has published a guide to salary and skills trends in the manufacturing job market, which it describes as ‘highly competitive’ and ‘candidate-short’.
Digitalisation will “empower women in manufacturing”
To mark International Women’s Day, three trailblazing women explain how the digital transformation of manufacturing has the potential to kick-start a golden age for women in the industry.
Budget 2020: What does it mean for manufacturers?
The Coronavirus outbreak dominated this year’s Budget, but there were plenty of other notable announcements - from rising R&D spending to record investment in infrastructure.