Manufacturers<\/a> have a desire for change, to reap the benefits of digitalisation and Industry 4.0 and to evolve traditional manufacturing with adaptive, flexible manufacturing. This trend is supported by a recent research report, which found that 96% of companies are using at least one next-generation technology.<\/span><\/p>\nMultiple challenges face UK manufacturing and are driving necessary change. For example, with rising costs and depleting reserves, energy optimisation is a critical focus for manufacturers. An overdependency on non-UK sources is also a factor and many companies are rapidly adapting to use other localised power sources like renewables.<\/p>\n
Necessity is the mother of invention<\/h3>\n
Bosch is working closely with leading UK manufacturers to enable their adoption of this rapidly changing technology landscape in order to benefit from Industry 4.0 and IoT, as well as to offset some of the issues created by a global marketplace. Some of the key areas of involvement include:<\/p>\n
\n- Modernisation and investment<\/strong> \u2013 Manufacturing has been slow to adopt technologies that would enable competitiveness, agility, flexibility, market leadership and future-proofing.<\/li>\n
- Workforce challenges<\/strong> \u2013 A talent shortage combined with the loss of experienced workers (over 50s) has created a void. Younger Generation Z workforce skills in coding and gaming technology are not being made use of or sufficiently recognised as potential assets. For reference, the vacancy rate in the manufacturing sector is the highest ever since Office of National Statistics (ONS) records began, standing at 3.7% in October 2021 (vs an average of 1.8%).<\/li>\n
- Lack of integration between IT and operations<\/strong> \u2013 This results in stranded assets, manual dependency, low productivity, poor quality and overcomplicated processes.<\/li>\n
- Overextended assets<\/strong> \u2013 Machinery and equipment are being used beyond their planned operational lifecycle and the adoption of new automation, robots and drones has been slow.<\/li>\n
- Overdependency on offshore investment<\/strong> \u2013 Depending on non-UK corporate HQs such as Ford from the US, Nestle in Switzerland and Toyota of Japan, leaves local manufacturers in a potentially vulnerable position.<\/li>\n
- Cost of manufacturing<\/strong> \u2013 Manufacturing costs in the UK are comparatively higher than in other regions and nearshore alternatives like the Czech Republic.<\/li>\n
- Brexit impact<\/strong> \u2013 The impact on supply chains, cost of raw materials, import duties, workforce access, export order book and investor confidence continues to present issues.<\/li>\n
- Covid impact<\/strong> \u2013 Continues to present challenges in supply chains, R&D and production.<\/li>\n
- Changing PESTLE landscape<\/strong> \u2013 The Ukraine war has created a rapidly changing environment, disrupting the movement and accessibility of raw materials and goods.<\/li>\n
- Evolving technologies<\/strong> \u2013 The pace at which technologies are evolving is a challenge to keep up with, for example, the development of hydrogen engines.<\/li>\n
- Consumer-driven market dynamics<\/strong> \u2013 Keeping current with new trends from consumers such as mass customisation, healthier eating and environmentally-friendly products.<\/li>\n<\/ul>\n
The role of digitalisation and Industry 4.0<\/h3>\n
Industry 4.0<\/a> is the connection of people, processes and assets through information and communication technologies. Implementing intelligent solutions in production and logistics enables optimisation within factories and ultimately improves competitiveness in manufacturing. By embedding advanced data-generating and processing software into production facilities, organisations can evolve into smart connected factories. This increases productivity, quality and energy efficiency while helping to develop value-added, outcome-based measurable results and creates new, profitable business models toward sustainable manufacturing.<\/p>\nManufacturers are at different stages of digitalisation adoption and development. Some are yet to start and as a result, Industry 4.0 standardisation can be difficult to implement. For example, many UK manufacturers have multiple vendors for equipment, automation systems and software which inflicts a heavy burden on time, money, productivity and quality in supporting the operation of non-standardised systems.<\/p>\n