A significant number of small to medium sized British manufacturing businesses are being stymied by their slow adoption of industrial digital technologies according to a new report from the manufacturers’ organisation Make UK and Infor.
The use of 3D printers, AI, Internet of things, Augmented and Virtual Reality are making a real contribution to business operations across companies of all sizes – especially around the recent need for remote production and monitoring – but a significant number of small to medium sized businesses remain at the digital starting block shows research for the report ‘Bouncing Back Smarter: Innovation Monitor 2020’, published today.
The two years since Make UK’s last ‘Innovation Monitor’ have seen little change in the barriers to digital adoption, particularly for SMEs where lack of skills and technical knowledge remain top of the list but scarcity of finance is becoming a more significant block, with companies stretched due to loss of business caused by the pandemic. A lack of knowledge of available Government schemes, and an absence of targeted digital implementation help for SMEs is further holding back progress.
While manufacturers are aware of the benefits of industrial digital technologies (IDTs), the report found that many (44%) are not yet adopting them.
Regional variation is also stark. The Government’s Made Smarter pilot in the North West has been impressive in terms of digital adoption, with 20% of small businesses in the area already at the highest level of IDT adoption. The NW pilot programme provides a package of SME digital support – financial help for IDT investment purchases, access to an advisory service to ensure the right choice of technologies and training in how to use them to best advantage. Support for change management skill building is also an integral part of the Made Smarter programme. Make UK said research shows that this model is working, making a strong case for national rollout.
Stephen Phipson, CEO of Make UK, said: “In recent months manufacturers have faced unprecedented challenges with the need for IDTs never more important. In the coming months, as supply chains return to normal, it is important to build resilience and further accelerate digital adoption to give UK manufacturing that turbo charge to deliver even greater international competitiveness. Digital adoption allows companies to work as effectively and efficiently as possible and it is vital Government steps up to work with industry to make sure Britain’s smaller and often most innovative companies get that bespoke help they need to make the most of the technologies available to them.”
