Unveiling the true impact of UK manufacturing

A groundbreaking report by the Manufacturing Technologies Association (MTA), titled, The True Impact of UK Manufacturing, highlights the industry’s immense contribution, revealing its worth of £518bn and the 7.3 million jobs it supports directly and through supply chains.

Conducted in collaboration with Oxford Economics, this comprehensive analysis shows that manufacturing contributes nearly a quarter of the UK’s GDP (23%), a stark contrast to the 8.2% often cited by economists. The report also underscores that manufacturing accounts for 34.5% of all UK exports, with a median wage of £31,300 - 11% higher than the national median.

Addressing the skills shortage

Despite a series of unprecedented challenges in recent years, including Brexit, the COVID-19 pandemic, surging energy costs, global supply chain disruptions, and international conflicts, the manufacturing sector’s resilience and adaptability have been remarkable. James Selka, CEO of MTA, emphasises the need to address the skills shortage and foster successful programmes like the High-Value Manufacturing Catapult Centres, which aim to commercialise the innovative ideas and technologies emerging from the UK, driving further economic growth and wealth creation.

The report highlights that manufacturing not only supports high-wage jobs but also invests heavily in new technologies, with nearly half (47%) of the UK’s total R&D investment coming from the sector. Events like MACH 2024, where over 500 companies showcased advancements in automation, robotics, additive manufacturing, and CNC machining, provide a first-hand glimpse of this innovation. To fully realise its potential, the MTA calls for a united commitment from business leaders, academics, and policymakers to develop a cross-party industrial strategy. The recent Advanced Manufacturing Plan, with its £4.5bn support package, is a promising step towards fostering new technologies and industries such as electrification, lightweight materials, and renewable energy.

Achieving decarbonisation goals

Decarbonising production processes presents significant opportunities for manufacturers, both environmentally and economically. The MTA advocates for a comprehensive decarbonisation strategy, aligning with global net-zero targets. The manufacturing sector, responsible for 12% of the UK’s carbon emissions, plays a pivotal role in achieving these goals. Investing in decarbonisation can enhance energy efficiency and reduce operational costs. Research by PwC indicates that 33% of manufacturers attribute emission reductions to improved operational efficiency. Furthermore, adopting eco-friendly practices can give companies a competitive edge, as consumers and investors increasingly prefer sustainable businesses.

The UK manufacturing sector faces a chronic labour shortage, with 36% of roles hard to fill due to a lack of qualified candidates. A survey by PES Media reveals that 57% of manufacturers struggle to hire skilled workers. This shortage stems from various factors, including outdated perceptions of manufacturing careers, workplace safety concerns, and a lack of diversity. The MTA encourages businesses to adopt policies that attract top talent, such as promoting eco-friendly practices, offering better work-life balance, and providing continuous learning opportunities. Engaging young people with a passion for manufacturing is crucial, and this can be achieved by countering stereotypes, embracing cutting-edge technology, and ensuring robust mentoring and upskilling programs.

Improving maintenance processes via Industry 4.0

Automation offers a forward-thinking solution to the skills gap. By automating time-consuming administrative tasks, companies can free up employees for more complex, meaningful work, making manufacturing roles more appealing. As the UK accelerates its adoption of robotics and automation, manufacturers that leverage these technologies will lead the sector’s digital transformation. The integration of Industry 4.0 technologies, such as predictive maintenance, offers substantial benefits for manufacturers. By using data analytics and IoT devices, companies can proactively anticipate equipment failures and schedule maintenance, reducing downtime and extending the lifespan of machinery.

MACH 2024 featured Knowledge Hubs where visitors received impartial advice on critical technologies like robotics and automation. These hubs aim to improve the UK’s adoption of new technology and showcase how manufacturers can enhance productivity and efficiency. The MTA, along with the Manufacturing Technology Centre (MTC) and MACH 2024 Headline Sponsor Lloyds Bank, is committed to increasing the uptake of automation and robotics. Selka emphasises, “Only by embracing what the hubs are trying to achieve will the UK restore its position as a sovereign manufacturer, re-establishing itself as a major player on the global stage.”

Increasing robotics adoption

A recent report highlights the UK’s lag in technology investment and robotics adoption, with the country outside the top 20 developed nations in industrial robot utilisation. The Automation and Robotics Knowledge Hub at MACH 2024 demonstrated how easily these technologies can be integrated into existing operations, improving accuracy, consistency, and efficiency. UK engineers produce the highest quality goods, a key reason for the sector’s strong reputation. Strict industry standards ensure that UK products meet high-quality benchmarks, providing customers with the confidence that their investments are sound. This adherence to quality standards sets UK manufacturing apart from countries where standards might be more lax, leading to inferior products and higher waste.

Face-to-face interactions at events like MACH 2024 are invaluable for improving communication between suppliers and customers. These interactions help both parties better understand each other’s needs, fostering stronger business relationships and more effective collaborations. The high quality of UK research and development work means that many potential issues are resolved before production begins, ensuring smoother operations and higher-quality outputs.

With increasing emphasis on sustainability, the ability to manufacture goods locally reduces the need for long-distance transportation, cutting down on carbon emissions. This not only benefits the environment but also aligns with consumer and investor preferences for sustainable practices. By shortening supply chains, UK manufacturers can respond more quickly to market demands and reduce lead times, enhancing overall efficiency. Adopting advanced manufacturing technologies, such as 3D printing, provides financial advantages by reducing production costs and minimising waste. These technologies enable more precise and efficient production processes, supporting prototyping and short production runs. This flexibility allows companies to better manage cash flow, ordering only the necessary materials for each batch and reducing excess inventory.

Investing in technology

Investing in new machinery and revamping production processes can significantly improve efficiency. The money saved from increased efficiency can be reinvested into the business, supporting areas such as energy costs, skills development, and research and development. This reinvestment helps companies stay competitive and innovate continuously.

The MTA’s latest report underscores the critical role of manufacturing in the UK economy. By addressing the skills gap, embracing decarbonisation, and leveraging advanced technologies, the sector can continue to thrive and drive economic growth. The MTA calls on all stakeholders - business leaders, academics, and policymakers - to support a unified, cross-party industrial strategy that will ensure the UK’s manufacturing sector remains competitive and sustainable in the years to come. By embracing the recommendations and insights from this guide, UK manufacturers can navigate current challenges and seize new opportunities, ensuring a robust and sustainable future for the sector.

Manufacturing Technologies Association

Tel: +44 (0) 20 7298 6400

Email: [email protected]

Web: www.mta.org.uk