Lack of industry 4.0 understanding holds back UK manufacturing

Only 8% of UK manufacturers have a significant understanding of industry 4.0 processes despite 59% recognising that the fourth industrial revolution will have a big impact on the sector, according to BDO LLP.

As the increasing use of automation, data exchange, technology and wider supply chain communications driven by industry 4.0 provides both opportunities and threats to UK manufacturing, there remains a ‘gaping hole’ in the education and understanding of this process.

The report suggests increased productivity, better data analysis, increased competitiveness and lower manufacturing costs are the top ways in which industry 4.0 will affect UK manufacturing. However, a third of manufacturers are at risk of falling behind global competition having not invested in either the technology or processes in the last two years. More so, a quarter say they have no plans to invest in this area and 44% of those not investing said this was due to a lack of understanding.

Of those that are increasing investment levels, 16% of companies are expected to spend over £500,000 before 2018, while 7% plan to invest more than £5 million.

64% of those surveyed said that production would be a key area when investing in automation systems and industry 4.0 related technology, with 45% and 25% respectively saying research and development and logistics were key areas of focus. Only 5% said poor investment levels were due to the lack of external finance or grants.

Tom Lawton, head of manufacturing at BDO LLP, says, “It is surprising to see such low awareness of industry 4.0 among UK manufacturers and clearly more needs to be done to educate, support and assist the sector as we make strides into what is likely to become the fourth industrial revolution.
“UK manufacturers need to push ahead or they will be left behind, especially when it is evident other countries are already moving ahead of the game with education and investment programmes being much more clearly supported by government than in the UK.”

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