Manufacturers urged to invest in smart tech

Around 93% of manufacturers in Yorkshire are confident about Britain’s ability to compete in the international marketplace over the next five years.

That is according to new research from Barclays Corporate Banking, which also mirrors the findings of the Made Smarter report published this month.

More than two fifths (40%) of manufacturers in Yorkshire attribute their confidence to ‘fourth industrial revolution’ (4IR) technologies, such as machine learning, sensors and big data, which they believe will boost the productivity of their business.

Of those that have already invested, 46% of manufacturers in Yorkshire report that the adoption of 4IR technologies has improved productivity, while 17% are already seeing return on investment.

Yet, there is still resistance to investing in the very latest innovations, the report says.

The Barclays Corporate Banking Manufacturing Report, Intelligent manufacturing: an industrial revolution for the digital age, is based on the views of over 500 manufacturing industry decision makers. It found that, while basic forms of automation, like robotics, have a high rate of adoption (76%), 43% of manufacturers in Yorkshire are yet to invest in 4IR technologies like artificial intelligence.

Yet economic modelling included within the report predicts that manufacturers could boost the sector by an additional £102bn per year by 2026, provided 4IR sees greater adoption and investment over the coming years.

The study also shows that the industrial heartlands would benefit most from investment in 4IR technologies, such as sensors, big data, energy self-generation and machine learning. The West Midlands (14,000), North West (13,000), Yorkshire & Humber (11,000), and East Midlands (also 11,000) all set to see a big hike in employment.

Tony Walsh, Barclays managing director Norther Region, said: “Our research shows that Yorkshire manufacturers see the benefits of this cutting-edge technology, and many have started to match their intentions with investment. However, we are at a watershed. While the outlay may seem expensive for many at a time of uncertainty, the industry needs to raise its levels of investment in the skills and infrastructure needed to harness these new technologies and keep us more productive than other international manufacturing hubs.  Businesses that make the leap will be rewarded.

“Yorkshire manufacturing is going through another industrial revolution but confidence alone does not translate into success and benefit. With sterling currently weaker and a robust appetite from domestic and international markets for Yorkshire goods, the industry is in a strong position to take advantage of the opportunities investing in Fourth Industrial Revolution technologies can bring.”