Many think manufacturing is no longer a key strength of the UK. But as the recent Smart Factory Expo in Liverpool showed, the sector is still a powerhouse. In 2021, manufacturing contributed £203 billion in Gross Value Added to the economy, accounting for 10% of the UK total. GVA is a measure of economic output that is similar to GDP. It measures the value of products and services produced minus the costs incurred in production. Additionally, the UK is the fourth largest manufacturing economy in Europe and ninth in the world.

The Smart Factory Expo showed a number of important lessons that help ensure the UK continues to have a strong manufacturing presence as the world moves towards Industry 4.0.

1. Manufacturing is getting even more invested in sustainability.

It was clear at the Manufacturing Leaders Summit that the topic topping the agenda was sustainability—not just the issue of factories being sustainable on the production line and with their input/output, but how companies can work towards getting their transportation and distribution services carbon neutral. The sustainability conversation went even further with discussion around moving IT services and facilities towards the cloud and seeing what benefits can be brought there.

2. Digital transformation is an evolution.

While the event was more focused on process, engineering teams, and production, there was an acceptance that AI and automation across the organization using cloud-based platforms with solutions for lean operating models, accounts, ERP, and sales management systems could bring sustainable benefits as well as cost, communication, and collaboration advantages.

One area where the cloud has already shown benefits is where manufacturers are replacing on-premises telephone systems with a cloud-based communications solution to bring all communication channels together onto a single platform. Doing so simplifies administration and provides valuable insights into customer and employee interactions. ERP software development on the cloud can also streamline business processes and improve data integration across different departments.

Research from Metrigy has shown that organizations that use a single platform for calls, chat, meetings, and contact centers demonstrate a 56% reduction in total cost of ownership (TCO). Constellation Research reported that post-pandemic, companies are now using an average of seven different tools for messaging, collaboration, file sharing, and meeting management. These often sit alongside costly, traditional, on-premise telephone systems and each provides its own data set. The challenge for IT professionals is how to use that data effectively and maximize their investments.

3. Companies considering pausing digital transformation need to be wary.

Given the recessionary era we find ourselves in, it’s understandable that some attendees pointed out that they may be pausing their ongoing digital evolution so that the cash can be used elsewhere. While in the short term this can seem like a sensible approach, there are a couple of dangers to it.

Firstly, as most digital investment is expected to continue there is always a risk that by doing nothing you give your competitors a chance to leap ahead and steal market share through their investment. Secondly, our Cost of Doing Nothing studies have shown that very often, pausing on spending actually ends up costing five and six figure sums.

4. Talent recruitment and retention isn’t one-size-fits-all.

Gender, talent recruitment, and talent retention were seen as hot topics with multiple avenues and solutions being looked at. Communication with the shop floor was seen as a key topic, as well as the ongoing issue of how to balance the staff who want to mix office working and home working, while many factory floor staff don’t have that option.

With a look at the latest recruitment trends, research shows that different age groups and genders now have vastly different expectations in what constitutes a steady and stable job. Another issue addressed was that, while not every role in manufacturing can be remote, there are areas with strong potential for benefits. Recent research estimates that digital collaboration will boost productivity by 20 - 30% in activities such as root cause investigation, supplier management, and maintenance.

5. The top floor and the shop floor need to be united.

At Smart Factory Expo, one major topic was the struggle of effective communication across an organization, from the top floor to the shop floor. Many still rely on either signage at key areas, shift managers briefing teams, or management having to physically walk out onto the shop floor to find the person with which they need to communicate.

This time-consuming process is something manufacturers are keen to address with modern communications where possible. Mobile phones are not allowed on the shop floor and voice-only solutions are often not suitable in noisy environments. Alternatives discussed with attendees included fixed point WiFi enabled devices, headsets in some uses, and wallboards for message delivery.

Looking to transform your organization for the new era of work? Learn more about what our solutions can do for helping manufacturing with digital transformation.