A digital skills account to provide employees with access to life-long learning needed alongside a National Skills Taskforce to develop a digital skills programme – Make UK/Sage analysis

• 91% of manufacturers have benefited from the adoption of new technology during recent pandemic crisis

• A quarter say it boosted their productivity and 12% said it increased the rate of production

• 8/10 manufacturers now plan to continue using the technologies they have adopted

• 87% of manufacturers who had undertaken digital training in the last 12 months say it put them at an advantage

• However, a third of companies have not invested in any digital training in the last  year

• Two-thirds of manufacturers think education and training system is not keeping pacing with the adoption of new digital technologies
• Investment in digital skills can be a great leveller, allowing more and more businesses to realise the potential of new technologies to boost productivity

British manufacturing companies moved at speed  towards digitalisation when the pandemic struck, with nearly half switching to digital working practices within two weeks of lockdown, according to new research, ‘Digital Skills for a Digital Manufacturing Future’, published today by Make UK, the manufacturers’ organisation and Sage. With just a fortnight’s digital installation and planning, 94% of companies said they had staff working successfully from home in industries often associated with manual tasks and a high proportion of production-based work.

Some 91% of those manufacturers benefitted from adopting new digital technologies during the crisis. And eight out of ten companies said they would continue to adopt new working practices having seen the quick benefits. A quarter of companies polled found utilising new digital technologies had boosted productivity and 12% said it had increased production levels. 

Some 87% of manufacturers said investing in digital training gave them a competitive advantage, and nearly two-thirds (64%) had undertaken training to improve digital skills in the last 12 months. Interestingly, it was the very smallest and largest companies which were more likely to have taken on such training – 83% of companies with up to 9 employees and 94% employing more than 1000 staff.

In the past few months, it is those new skills which enabled the quick adoption of digital to deliver the remote production and monitoring systems which kept vital lines working effectively, virtual trade exhibitions and the use of 3D avatars for sustainable sampling and virtual commissioning. The use of digital was also found to accelerate innovation plans.

While digital skills were paramount in keeping Britain’s manufacturers open for business and enabling the switch in production to vital PPE equipment and ventilators for the NHS, this acceleration must continue at pace to promote continued growth as the sector rebuilds. It is good news that 45% of companies told us they had already changed their skills training and strategies in the light of COVID 19. But cost pressures and the need to socially distance has meant that two thirds of companies have put some or all of their training on hold.

Worryingly, two-thirds of manufacturers do not think the education and training system is keeping pace with digital technology advancements – indicating a serious lag between the UK’s ambitions to be a world leader in digital adoption and our skills and training system delivering what is needed.

To futureproof the sector, Government and industry need to establish a National Skills Taskforce, to deliver a digital skills programme and a digital skills account for lifelong learning to enable ongoing reskilling.

Stephen Phipson, CEO of Make UK, the manufacturers organisation said:

“The last six months have shown that digital has been crucial in making it possible for manufacturers to continue production successfully against a backdrop of COVID – highlighting the need to ramp up digital skills within the manufacturing sector even further as companies move to build future resilience and boost productivity. 

“Most companies put some of their workers on furlough but sadly the subsequent fall in demand has meant that some highly skilled people have gone on to lose their jobs. As the sector is fights to get its order books back to something like normal, it is crucially important that we do everything possible to keep hold of these skilled people who are currently unemployed. This is why government must work with industry to set up a National Skills Taskforce to match those skilled workers with employers who so desperately need those skills alongside developing a lifelong learning programme to constantly upskill existing employees.

“Manufacturers should also look to harness the power of young people who are digitally fluent to fully embrace digitalisation throughout UK manufacturing”.

Rob Sinfield, VP Manufacturing, Sage added:

“This Make UK research is promising, yet also acts as a stark reminder of the challenges businesses, particularly manufacturers, face in the coming months. It is clear the 91% of manufacturers that have benefited from the adoption of new technology understand the importance of digital; the ones that have invested and adopted in digital are the ones that have adapted quickest. 

“As two-thirds of manufacturers don’t think the education and training system is fit for purpose to help them adopt of new digital technologies, we now need to look at what support there is for them to bridge any digital skills gaps.

“Sage’s own research with Capital Economics also found that digital is key for businesses to remain resilient, with 67% wanting to invest more in tech to deliver performance improvements. So, there is a clear tangible desire from businesses to invest in digital with great benefits to be had. It is now up to the Government and industry to jointly address the support needed to nurture and grow these skills to help reduce unemployment and strengthen our sector.”

ENDS

About Make UK

Make UK, the manufacturers’ organisation, is the representative voice of UK manufacturing, with offices in London, Brussels, every English region and Wales. 

Collectively we represent 20,000 companies of all sizes, from start-ups to multinationals, across engineering, manufacturing, technology and the wider industrial sector. We directly represent over 5,000 businesses who are members of Make UK. Everything we do – from providing essential business support and training to championing manufacturing industry in the UK and the EU – is designed to help British manufacturers compete, innovate and grow.

From HR and employment law, health and safety to environmental and productivity improvement, our advice, expertise and influence enables businesses to remain safe, compliant and future-focused. 

About Sage

Sage is the global market leader for technology that provides small and medium businesses with the visibility, flexibility and efficiency to manage finances, operations and people. With our partners, Sage is trusted by millions of customers worldwide to deliver the best cloud technology and support. Our years of experience mean that our colleagues and partners understand how to serve our customers and communities through the good, and more challenging times. We are here to help, with practical advice, solutions, expertise and insight.

https://www.makeuk.org/insights/reports/digital-skills-for-a-digital-manufacturing-future

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