The Annual Manufacturing Report 2018,
published by Hennik Research, says UK manufacturers are poised to take on the
world, but are failing to pull the trigger on a bright future because of
uncertainties surrounding the outcome of Brexit negotiations and the threatened
shortage of skilled workers in the coming decade.
The report’s author,
The Manufacturer’s Editorial Director
Nick Peters said: “UK manufacturing has come a long way in recent years, as we
have seen from their stellar performance in 2017.
"They have
bought the argument that only those companies that adopt the very latest Fourth
Industrial Revolution digital technologies, known as Industry 4.0, can compete
on the world stage, and they have faith in their own drive, determination and innovation
to succeed. But these external factors pose a serious threat.”
The AMR reinforces
the concerns expressed in the sector’s response to the government’s industrial
strategy green paper that UK manufacturers needed to accelerate adoption of
Industry 4.0 in order to be competitive with countries where adoption rates are
much higher.
“It isn’t that
manufacturers don’t trust the extraordinary power and potential of these
technologies – they manifestly do,” Peters said, “but they are following a
familiar narrative established over previous decades and successive
governments.
"They hesitate
because they sense a lack of national economic purpose from the centre.
Hopefully the government’s anticipated new industrial strategy will resolve
that. What will be much more difficult to deal with is the scarcity of skilled
recruits, now and in the future, and the extreme uncertainty caused by Brexit.”
Some of the key
statistics:
- 72% of manufacturers have
confidence in overseas trade and say conditions are good for growth, and
yet…67% say Brexit is making planning difficult and is damaging business
prospects.
- 71% believe apprenticeships
are developing into a proper alternative to higher education for school
leavers, but a significant number believe the government’s new
Apprenticeship Levy, designed to recruit 3m more apprentices in the coming
years, has backfired badly…59% say it is little more than a tax on
employment.
- 87% say they are ready to
invest in productivity-enhancing digital technologies, while…61% say they
can self-finance the investment or raise the money from lenders.
“The last statistic
on the readiness of manufacturers to invest is, on the face of it, quite
hopeful,” Nick Peters said, “but our survey did not just measure intentions, it
also measured how strongly manufacturers feel about these issues. We are
concerned that behind these seemingly positive numbers lies a great deal of
hesitancy.”
Cara Haffey, PwC
UK’s Industrial Manufacturing & Automotive leader, commented on the
PwC-sponsored Skills and Training section: "The UK manufacturing industry
is experiencing a radical transformation triggered by the opportunities
presented by the acceleration of the fourth industrial revolution. This is
having a real impact on the skills manufacturers feel they need for the future
- ranging from artificial through to emotional intelligence.
“The Manufacturer’s
research findings also suggest the need for a regionally oriented action
agenda, with a focus extending beyond simply skills to manufacturing industry’s
wider needs. Such a programme should shape visions, identities and economic
development strategies to achieve inclusive, place-based growth, supported by
local industrial strategies spanning not just skills but also infrastructure,
innovation and business growth."
