OPPORTUNITY KNOCKS FOR UK MANUFACTURERS ADOPTING TECHNOLOGY INNOVATION

A report published in May by the global accountancy software company Sage revealed a sector taking charge of its own destiny despite growing change and uncertainty.

“Contrary to prevailing sentiments about the decline of manufacturing in the UK, our research reveals attitudes are anything but downbeat,” said Sabby Gill, Sage’s UK and Ireland Managing Director.

“With the Fourth Industrial Revolution gathering pace, we see an industry taking the initiative to equip itself with the technologies and skills it needs to succeed.

“Half of UK manufacturers, for example, say uncertainty around Brexit is making them more likely to invest in technology as they prepare for possible changes.

“In an increasingly digitised world, and with political and economic uncertainty, manufacturers that prioritise digital transformation have the best chance of maintaining growth and riding the wave to success,” he added.

Driven by uncertainties around importing and exporting, 54 per cent of UK manufacturers see greater opportunities in providing locally sourced goods regardless of price, rather than cheaper items irrespective of origin, the report says.

This trend towards onshoring is driven by the value customers place in “Brand Britain”, and ties in with concerns around risk and the importance manufacturers place on the traceability of raw materials.

After the artificial boost resulting from Brexit-related stockpiling in the first quarter of the year, which saw quarterly growth of more than two per cent, manufacturing started to contract again said MakeUK, the national organisation championing UK manufacturing.

But the UK is not the only country in Europe which is facing challenging conditions in its manufacturing sector.

The Eurozone purchasing manager’s index continues to be in negative territory, and Germany and Italy have been struggling for months. Political uncertainty, trade wars and industryspecific difficulties in key sectors such as automotive, are deeply affecting manufacturing performance.

MakeUK says that looking at the next few months, the weak intermediate goods market in Europe and the UK are a hint that future output is not expected to improve soon.