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Spending on staff more important than robots to harness new industrial revolution

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EEF research finds more than 80% of manufacturers believe they will need to invest in staff skills in order to adopt new advances in technology

 

A majority of UK manufacturers believe the 4th industrial revolution (4IR) will be a reality by 2025 according to research released by EEF, the manufacturers’ organisation, and Oracle.

The 4IR, which is being driven by connectivity, big data and other rapid advances in technology, will be the next global industrial transformation according to 80% of manufacturers.

However, while this transformation is technologically and digitally driven, the research suggests that manufacturers are prioritising investment in skills over software and machinery.

More than 80% of manufacturers say that they will need to invest in staff skills in order to adopt new advances in technology. At the same time 65% recognise that they will need to invest in management skills as they set about boosting their company’s knowledge and understanding at a strategic level.

The study revealed that getting ready for 4IR will require new machinery (51%) and software (38%) - but 34% of manufacturers also say new staff will be required.

Firms are already investing in multi-purpose production lines (38%), capital equipment with embedded sensors and controls (33%) and cloud solutions (29%).

Within the next five years, manufacturers be have invested in 3D simulation of manufacturing processes (18%), augmented reality (17%) and fully autonomous robots (16%).

The findings also suggest that new technologies will start to change the way factories look in a relatively short space of time. Within the next five years, almost 30% of manufacturers will be using rapid additive manufacturing techniques, while those using cloud solutions will have leapt to 46%.

Lee Hopley, chief economist at EEF, said: “4IR will be crucial for UK manufacturing. Manufacturers are aware that it will be a game changer – not just for investment in technologies, but for the cutting-edge, high-level skills required alongside.

“The speed of this new industrial revolution is such that UK manufacturers will need help and support to adjust and capitalise on its opportunities. Knowledge and understanding will be key, which is why we have created this free fact card to help get our sector up-to-speed and to encourage companies to share ideas and best practice.” 

Steve Hill, director of external engagement at The Open University, added: “It is encouraging to see companies recognising that simply investing in new technologies alone will not transform their business.

“The pace of change in many of the technologies that we are using today means that even the most experienced of employees may need a skills boost. Organisations must focus on lifelong training across their workforce, as they cannot rely simply on younger individuals coming into the company to bring the necessary skill sets.”

Hill added: “Another factor which is being brought about by the spread of automation, robotics and augmented reality is that soft skills are increasingly gaining value. As companies are increasingly able to rely on technology to perform tasks, their employees’ ability to contribute creativity, communication and collaboration will be necessary to set their business apart.”

EEF and Oracle have published the findings on a free fact card for manufacturers, designed to raise awareness and help manufacturers understand what 4IR could mean for their business. 

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