UK ‘could miss out’ in fourth industrial revolution

Britain could miss out on opportunities as a fourth industrial revolution takes hold globally, manufacturing body EEF has warned.
Andy Tuscher EEFAndy Tuscher EEF
Andy Tuscher EEF

A new period of transformation, dubbed ‘Industry 4.0’, will be driven by widescale adoption of technology and automation, the trade body said.

Research released ahead of EEF’s National Manufacturing Conference found growing concerns that Britain’s manufacturers may not keep up with international competitors unless an appropriate strategy is developed at Government level.

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While eight out of 10 (88 per cent) of manufacturers predicted technological domination within manufacturing would be a business reality by 2025, six out of 10 (58 per cent) said the UK is at risk of being left behind in the process.

EEF said the country’s ability to be a frontrunner in the new era “hangs in the balance”.

Andy Tuscher, Yorkshire and Humber region director at EEF, said: “The fourth industrial revolution will change the global face of manufacturing beyond recognition.

“The UK must take a leading role if we are to realise our ambitions for a healthy, balanced and growing economy.

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“The next decade will bring great and rapid change and the early-adopting nations will maximise the opportunities presented by new technologies and thrive as a result.

“There will inevitably be winners and losers, which is why we should take note when manufacturers say there is a real danger of the UK being left behind.”

Two thirds of the 206 senior decision makers polled for the research said the UK will only be able to compete globally if it is able to keep up with advances in technology.

However, just 14 per cent said they thought the UK was in a position to do this.

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Seven out of ten of those surveyed raised concerns about the level of investment required to compete in a technologically-driven world.

The impact on the supply and demand of skills was highlighted as an issue for 59 per cent, while 58 per cent said keeping on top of technological advances would itself be a challenge.

While the new industrial world could be difficult to navigate for manufacturers, 69 per cent of respondents said it will play to the UK’s strengths in high-value manufacturing.

Around two-thirds (63 per cent) said there would be greater demand for skilled workers as a result of the changes, while 55 per cent believed the technologically-enhanced industry would increase the value and importance of manufacturing in the UK.

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Half of manufacturers said the coming changes would hasten the trend for the reshoring of manufacturing to the UK.

Nine out of 10 (85 per cent) said a long-term industrial strategy that spans consecutive governments is needed to make the most of the upcoming opportunities.

Mr Tuscher added: “Our sector’s ability to remain on top of the fourth industrial wave hinges on the decisions made now and over the next decade by consecutive governments.

“We must continue to establish the foundations to support our manufacturing renaissance, particularly alleviating the pressure that Industry 4.0 will place on investment and skills.

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“It is vital that the Government steps up to this challenge and works hand-in-hand with manufacturers and academia to ensure that the UK is not left behind.”

The research was published alongside a specially-commissioned report sponsored by Infor and IBM. Manufacturing, Britain’s Future highlights areas of opportunity and best practice in developing and adopting manufacturing technology.

EEF will launch its manifesto, Securing a manufacturing renaissance: priorities for Government, at its conference this week.

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Yorkshire is home to three of the seven High Value Manufacturing Catapult centres which aim to secure the growth and success of British manufacturers.

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The programme, which is overseen by Innovate UK and was launched in October 2011, provides research and facilities to develop the industry.

The Advanced Manufacturing Research Centre (AMRC), based in Rotherham, is tasked with finding solutions to challenges faced in advanced manufacturing, such as efficiency and difficult-to-handle components.

The Nuclear AMRC, also in Rotherham, supports the civil nuclear engineering sector.

The Centre for Process Innovation in Redcar provides expertise and facilities for businesses to try new ideas.