The North West region’s commitment to increasing research and development (R&D) spending is gathering momentum as manufacturers focus on fostering growth. The emphasis on innovation and technology is evident as companies strive to enhance productivity.
KPMG’s Rethink Manufacturing report highlights a significant trend among North West manufacturers, with 56% planning to boost R&D efforts in the UK over the next three years. Investment in new technology emerges as a crucial factor in this strategic shift towards increased efficiency and productivity.
A striking 90% of surveyed manufacturers view innovation as essential to the UK manufacturing sector’s success. The integration of modern technologies is at the forefront, with firms recognising the transformative role it plays in strengthening their global position.
Craig Wright, Head of Manufacturing at KPMG in the North West, underscores the imperative for management teams to adopt contemporary technological advancements. By embracing these, the North West can bolster its manufacturing reputation worldwide.
Industry 4.0’s potential is widely acknowledged, with 59% of manufacturers identifying it as a promising opportunity. The creation of ‘smart factories’ is expected to usher in a new era of manufacturing efficiency.
This paradigm shift promises substantial changes to existing business models, with 44% of participants expecting significant impact. Consequently, many firms are now prioritising investment in this innovative area.
Almost half of the manufacturers surveyed have already started investing in the Internet of Things (IoT).
Future plans reveal that 34% intend to ramp up their IoT investments by 2020.
This strategic step aims to leverage IoT’s potential in streamlining operations and enhancing productivity across the manufacturing sector.
Automation and advanced robotics are set to become key investment areas, with a notable 51% of manufacturers looking to enhance their automation capabilities.
Additionally, 43% are turning their attention to advanced robotics. These technologies are recognised for their potential to drive efficiency, precision, and productivity in manufacturing processes.
The UK government’s initiatives, including a robust £2bn R&D fund, are pivotal in supporting manufacturers.
This funding is geared towards emerging technologies such as artificial intelligence and robotics, aimed at fortifying the manufacturing sector.
However, industry leaders must take decisive action to harness these opportunities.
While the drive towards technology is promising, manufacturers face challenges in adapting to rapid advancements.
The necessity for skilled workforce and resources is paramount as companies navigate these technological landscapes.
Addressing these challenges will be essential for manufacturers to fully realise the benefits of their R&D investments.
The North West’s manufacturing landscape stands at the precipice of transformation, driven by increased R&D investment and technological innovation. Embracing these changes will be essential for continued growth and competitiveness in the global market.
As firms leverage opportunities presented by Industry 4.0 and government support, the region is poised to reinforce its position as a leader in the manufacturing sector.
In summary, the collective effort of manufacturers, government, and industry leaders is crucial for the North West to flourish in an ever-evolving industrial environment.