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Manufacturing needs to do more towards industry 4.0

A new survey from the manufacturers’ organisation, EEF, has demonstrated that manufacturers are becoming more fluent in their understanding of the fourth industrial revolution with more boosting investments, but further progress is required.

The survey findings, which have formed the basis of the 4IR fact card, revealed that more than two-fifths of companies have made solid investments and more than a third are expecting these to provide a payoff on productivity. However, more than half (57%) are still yet to make any investments into 4IR technologies as a result of certain barriers. These barriers, such as skills and technical ones, are preventing additional investment and industry and government need to work together to overcome these as a part of the industrial strategy.

“New digital technologies are rapidly transforming manufacturing and are key to boosting improvements in productivity. While there has been some progress and more companies are both aware of, and investing in, 4IR it is clear that we are still some way off a majority engaged in adoption,” commented Chris Richards, head of Business Environment Policy at EEF. “The reasons for this patchy uptake depend on where firms are on their 4IR journey, but include a spectrum of challenges. These range from skills and technology compatibility to company culture and finance. Government and industry need to work together to ensure the UK benefits from the productivity benefits 4IR technologies can offer.”

According to the survey, the proportion of companies who are familiar with the concept of 4IR has increased — 64% compared with 42% in 2016. Additionally, this is further highlighted through the fact that 43% of companies have progressed beyond the initial conception phase examining how 4IR may help and what others are doing to the ‘evolution’ phase where current business practice is optimised with new technologies.

As more companies are moving to a more advanced form of 4IR investment, the survey also revealed that there are significant benefits being expected or realised in terms of improved labour efficiency, improved machine utilisation rates and increased production flexibility.

However, barriers still remain in the way of a digital future, particularly the lack of skills within businesses for implementation of 4IR technologies — which ranked the highest — and a lack of understanding as to how tech can help the business.

For those companies who are already investing in 4IR, however, skills became less of an issue with the biggest barrier highlighted as data compatibility between systems.

According to EEF, policy makers can’t be timid, as a separate survey of the public shows only 26% say we shouldn’t adopt new technology if it means jobs will be lost. While there has been some positive progress in recent months in areas such as delivering the full fibre digital infrastructure that 4IR will depend on, progress is still desperately needed.

In particular, government should:

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