The UK is falling behind global leaders in robotics and AI but solutions can be found from looking at other countries’ success, says a report from Make UK and Sage.
The report, Making it Smarter: Global Lessons for Accelerating Automation and Digital Adoption in UK Manufacturing, explores how targeted innovation and digital investment, especially in SMEs, could add £150 billion to the UK’s GDP by 2035.
The report highlights why the UK ranks just 24th in global robotics density; how leading nations like South Korea, Singapore, and Switzerland are transforming SME manufacturing through targeted support; what’s stalling UK automation and how to fix it – including the digital skills gap; and the role of government strategy in enabling high-value innovation.
Dr. Séamus Nevin,Chief Economist, Make UK, said:”Time and again, we hear from small and medium-sized manufacturers that they’re keen to adopt new technologies, but are being held back by fragmented support, complex funding systems, and a lack of accessible, appropriate digital skills training. If we want to unlock a £150 billion boost to UK GDP by 2035, we must make it easier for SMEs to adopt automation and AI.
“Other countries are accelerating ahead by putting smaller firms at the heart of national strategies – with long-term support that’s simple to access, reliable, and rooted in real business needs. From South Korea to Switzerland, governments have created clear, SME-focused strategies that simplify innovation funding, offer long-term tax incentives, and ensure every business can access practical support.
“These policies work not just delivering improvements in economic growth, but also in more environmentally friendly processes with fewer defects, higher profit margins, and creating more higher skills, better paying jobs.”
The report found that firms adopting smart technologies see a 25 per cent increase in productivity and a 27 per cent drop in defects. But it finds that projects often stall after the implementation stage because companies cannot find the help and advice they need to make the technologies work for them.
Countries where all SME innovation funding and advice is held under one accessible umbrella hub are said to have higher success rates.
The UK government’s Industrial Strategy sets out how it will create a digitally literate workforce by 2035, but manufacturers cannot wait ten years for this to happen, says the report. Make UK is calling on government to embed targeted funding for digital skills needed in manufacturing and engineering to accompany the £100m set aside for engineering skills. The report found that firms adopting smart technologies see a 25 per cent increase in productivity and a 27 per cent drop in defects.