U.K. business leaders say that the country’s manufacturing potential remains strong, but significant investment in technology adoption and digital skills is essential to prevent further decline. This insight comes from a new report by Barclays Bank (NASDAQ: BCS) and The Manufacturer, titled **“Mind the Gap: Closing the productivity divide in UK manufacturing.”**
Released last week, the report is based on surveys and interviews with more than 100 U.K. manufacturers. It offers a cautiously optimistic view from the country’s manufacturing leaders, who largely agree that while productivity has been in decline, there is a path forward—one many manufacturers have already started to pursue.
### The Current State of U.K. Manufacturing Productivity
The latest data from the U.K.’s Office for National Statistics (ONS) shows that productivity, measured by output per hour, is 10% below the G7 average. Germany, a traditional manufacturing powerhouse, outperforms the U.K. by a full 16%. These figures align with industry leaders’ perceptions: more than half (56.4%) believe U.K. manufacturing productivity is declining, while 19% are unsure.
### Key Causes of Productivity Challenges
The report identifies several factors contributing to the productivity gap:
– **Skills and Workforce Challenges (56.5%)**
– **Slow Technology Adoption (40%)**
– **Supply Chain Inefficiencies (31.3%)**
– **Regulations (10%)**
A lack of digital skills is part of the workforce challenge, but the primary concern is the difficulty in finding workers willing to engage in manufacturing roles. The sluggish adoption of technology also remains a top concern. Cost is cited as the biggest barrier for smaller companies, with one CEO commenting that these firms often lack “financial headroom to trial new systems without guaranteed ROI.”
### Technology Adoption: A Critical Differentiator
The report highlights a wide disparity in digital transformation across manufacturers. Some have embraced integrated platforms to drive decision-making, while others rely on fragmented systems or even manual record-keeping. This gap directly affects their ability to identify inefficiencies and react in real time.
Interestingly, the report also notes a lack of a consistent, widely accepted definition of what “manufacturing productivity” actually means, which complicates benchmarking efforts. Despite these challenges, nearly half of respondents (49.6%) plan to increase their digital transformation efforts within the next 12 months—making it the top priority.
### Priorities for the Year Ahead
Following digital transformation, the next highest priorities for manufacturers over the coming year are:
– **Upskilling/Reskilling Staff (45%)**
– **Supply Chain Optimisation (29%)**
– **Enhanced Data Management (26%)**
### Conclusion
Overall, the research paints a mixed picture for the U.K. manufacturing sector. The report concludes:
> “The direction of travel is positive: manufacturers are investing, innovating and building momentum. Yet the challenge cannot be underestimated. Without continued focus on skills, technology adoption and process efficiency, the UK risks losing pace with global competitors.”
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**Read the full report here.**
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https://bitcoinethereumnews.com/tech/tech-digital-skills-unlock-uks-manufacturing-potential-barclays/