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Smaller manufacturers ‘lack strategic approach’ to digitalisation

Manufacturers are risking wasted time, money and effort adopting digital technology without a strategic plan, according to new research by the Made Smarter North West Pilot.

A survey into the awareness, attitudes and approach to digital technologies of 201 small and medium manufacturers found enthusiasm and motivation to introduce new digital tools into their operations. But it also found that too few are approaching the opportunities and challenges of the Industry 4.0 in a planned, strategic manner.

Three quarters (75%) of respondents said they had adopted new technology in the last three years. But these tended to be companies at the larger end of the SME scale, while 12% had never invested in the technology.

More than half (55%) of respondents admitted technology was not part of their future vision and growth plan.

Despite the clear appetite for technology adoption, barriers remained. The survey found the biggest were insufficient capital (50%) and a need for guidance (44%). Many businesses also cited a lack of time as a reason why they had not obtained business support or funding.

Programme director for the Made Smarter North West pilot Donna Edwards said the answer to a successful digital transformation was a holistic approach. “What is clear from our survey is that manufacturers recognise that digital tools and technology are essential to remain competitive, cut costs and increase growth. But it is also clear that too many makers have employed technology without the technical understanding of which areas to focus on first.” This led to disparate, disconnected equipment and wasted effort.

Made Smarter said that a good starting point was generally “to focus on data and systems integration to ensure a holistic view of operations and performance before adopting other technologies”. In the survey 46% expressed an interest in this aspect.

Mobile devices, wearable technology, and big data and analytics also had wide appeal.

The greatest investment had been in industrial machinery and automation (29%), additive manufacturing (21%) and industrial IT infrastructure (18%), the survey found. Fewer businesses had opted for augmented, virtual or mixed reality simulation and testing, or AI and robotics.

The Made Smarter pilot was designed to help manufacturers navigate through complex technology decisions, and it has worked with hundreds of businesses across north-west England. A five-minute registration process followed by a three-hour digital workshop identify challenges and provide a bespoke digital “roadmap”. A leadership programme, internships, specialist advice to support skills development, and funding support are also offered.


The report can be downloaded at: shorturl.at/hkmqU