Manufacturers have once again been urged to accelerate digital technology adoption to help them adapt to current economic challenges around rising energy costs and supply chain disruption, following new market research by Made Smarter.
A survey of around 200 SME manufacturers – focused on the North West – found that with 35% of companies focused on survival after a turbulent few years, improving productivity and introducing digital technologies are key drivers for firms.
Two in five reported that they have plans to invest in or adopt new technology in the next two or three years while a third said their latest business strategy includes integrating digital technology or a roadmap towards automation. Meanwhile 44% of those surveyed expressed an interest in data and systems integration technologies, and two thirds were considering industrial machinery, robotics and automation.
Despite the current challenging business climate, almost a third (29%) of respondents cited productivity, efficiency, and output as key drivers of technology adoption in 2022 and beyond. Increasing revenue (18%) was the secondary motivator to invest in new digital tools, followed by attracting and winning new customers (17%).
“SME manufacturers have endured a few unsettling years and continue to face a multitude of recovery challenges,” commented programme director for Made Smarter’s adoption programme in the North West, Donna Edwards.
“They are aware that technology brings significant benefits and they risk being left behind by not capitalising on the opportunities on offer. But it is also clear that they need support and advice to create a roadmap to digital transformation to enable them to adopt the right digital tools, progressively and sustainably, to avoid risking wasted time, money and effort.”
Although the majority of firms expressed a clear understanding of the benefits of investing in new technologies, barriers to adoption remain. Two fifths of manufacturers said a lack of capital and funding was holding them back from investing, as well as the lack of time (10%).
Donna Edwards added: “We have developed a simple and straightforward process which, in a matter of minutes, gets to the heart of a business’s challenges and supports them to take a first step in their digital transformation. With new challenges at our door, such as rising energy prices, supply chain disruption and labour shortages, now is the time for business leaders to reach out and take advantage of the support on offer.”