Manufacturers
are continuing to boost investment in fourth industrial revolution (4IR)
technologies with increasing evidence that many companies have moved beyond the
initial ‘conception’ phase and into the ‘evolution’ phase where they are seeing
real benefits from their investments according to a major survey published by
EEF, the manufacturers’ organisation.
The
findings come as a separate survey for EEF by YouGov reveals that the public
prioritises adoption of new technologies over job security with just over one
quarter (26%) of people agreeing with the statement that we shouldn’t adopt new
technology if it means jobs will be lost.
According
to EEF, new digital technologies are rapidly transforming European
manufacturing and investment in 4IR technologies is vital to achieving a step
change in UK manufacturing productivity given performance has flat-lined in the
decade since the financial crisis. The survey shows being innovative with
technology is seen by manufacturers as the number one factor to help boost
productivity 44%).
However,
the survey also shows despite some manufacturers making investments, the
majority (57%) are yet to do so and only one in four companies see the UK as
being in a leadership position. According to EEF, this matters because it means
barriers are standing in the way of additional investment.
Commenting,
Chris Richards, Head of Business Environment Policy at EEF, said: “New digital
technologies are rapidly transforming manufacturing and are key to boosting
improvements in productivity. While there has been some progress and more
companies are both aware of and, investing in, 4IR it is clear the majority are
not doing enough.
“While
there has been some positive progress on building the full fibre internet which
will remove one of the fundamental roadblocks in their way we desperately need
to see more progress if the UK is to achieve a leadership position. An
industrial strategy focussed on productivity has a key role to play in helping
companies push through the barriers that still remain.”
According
to the survey, almost two thirds of companies (64%) say they are familiar with
the concept of 4IR which compares to 42% in 2016. This progress is also
highlighted by the fact 43% of companies have moved beyond the initial
‘conception’ phase examining how 4IR may help and what others are doing, to the
‘evolution’ phase where current business practice is optimised with new
technologies.
The
survey also shows the move to a more advanced form of 4IR investment for
companies is seeing significant benefits being expected or realised in terms of
improved labour efficiency (35%), improved machine utilisation rates (34%) and
increased production flexibility (32%).
However,
the survey also shows that significant barriers still remain in the way of a
digital future. In particular lack of skills within business for implementation
tops the list for 88% of companies, although breaking down by phase of those
doing nothing (30%) the biggest barrier is not understanding how technologies
can help the business.
Of those
doing the most on 4IR, skills becomes less of an issue as the biggest barrier
is compatibility of systems (42%).
According
to EEF, while there has been some positive progress in recent months on
building the full fibre internet that 4IR will depend on progress is
desperately needed. In particular, Government should:
- Announce plans for the Made
Smarter Commission, delayed since February.
- Back the industrial strategy
challenge fund wave 3 bid for industrial digitisation. This will help
address the lack of understanding about the benefits of new digital
technologies.
