Yorkshire manufacturers should act now to invest in future smart tech

New research from Barclays Corporate Banking shows 93 per cent of manufacturers in Yorkshire are confident about Britain’s ability to compete in the international marketplace over the next five years.

This mirrors findings of the Made Smarter report published earlier this month. Over two fifths (40 per cent) of manufacturers in Yorkshire attribute their confidence to ‘fourth industrial revolution’ (4IR) technologies, such as machine learning and big data.

Of those that have already invested, 46 per cent of manufacturers in Yorkshire report that the adoption of 4IR technologies has improved productivity, while 17 per cent are already seeing return on investment. Yet, there is still resistance to investing in the very latest innovations.

Tony Walsh, Barclays’ managing director of the northern region, said: “Our research shows that Yorkshire manufacturers see the benefits of this cutting-edge technology.

“However, we are at a watershed. While the outlay may seem expensive for many at a time of uncertainty, the industry needs to raise its levels of investment in the skills and infrastructure needed to harness these new technologies and keep us more productive than other international manufacturing hubs. Businesses that make the leap will be rewarded.”

In addition, economic modelling included within the report predicts that manufacturers could boost the sector by an additional £102bn per year by 2026, provided 4IR sees greater adoption and investment over the coming years.

The study also shows that the industrial heartlands would benefit most from investment in 4IR technologies, such as sensors, big data, energy self-generation and machine learning.

Walsh continued: “Yorkshire manufacturing is going through another industrial revolution but confidence alone does not translate into success and benefit.

“With sterling currently weaker and a robust appetite from domestic and international markets for Yorkshire goods, the industry is in a strong position to take advantage of the opportunities investing in Fourth Industrial Revolution technologies can bring.”

Contrary to popular perceptions about the impact of AI, investment in 4IR technologies has the potential to create jobs for Britain.

Barclays has found that 101,000 jobs would be created in the next 10 years if manufacturers invest in smart factory technologies. Textiles (12.6 per cent), pharmaceuticals (8.3 per cent) and fuels (6.7 per cent) are some sectors that would benefit most.

As well as creating jobs, investment in technologies like AI were also understood to have a positive impact on the quality of work people experienced. Of the manufacturers that have already invested, 32 per cent said it freed up staff to concentrate on more highly skilled work.

Although manufacturers have been slow to act, this is not to say that they don’t have plans to do so in the future. 78 per cent of manufacturers have committed to investing in automation over the next five years.

Furthermore, over half predict more use of 3D printing over this period, suggesting the industry has confidence in its ability to transcend these barriers, and propel Britain forward into a new industrial age and on a global stage but timing is said to be key.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →