Industry 4.0, also known as the fourth industrial revolution, is reshaping manufacturing through the integration of advanced technologies such as big data, AI, and robotics. It’s a growing trend in the UK, with 67% of manufacturers aware of Industry 4.0, 23% already implementing digitisation and automation, and 62% intending to make the transition. These manufacturers can refer to the Smart Industry Readiness Index (SIRI) to see how technologically-ready they are. We’ll explore the elements of the SIRI framework and address the skills gap in UK manufacturing here.
Understanding SIRI
SIRI is a structured framework that helps manufacturers assess how prepared they are for Industry 4.0. It includes guidelines for a review of business processes and identification of opportunities for automation and optimisation. This is followed by an assessment of digital tools, systems, and technologies that are being used across the production lifecycle. Finally, there’s a focus on workforce readiness, leadership, and effectiveness in managing digital change. The review of these three key elements allows for the identification of current capabilities and essential improvements.
From data and connectivity to cybersecurity and human interaction, SIRI sets out the vital building blocks for companies to become future-ready. It also highlights the key dimensions that companies should consider when evaluating the digital maturity of their facilities. These dimensions include data management, supply chain integration, manufacturing flexibility, and sustainability.
SIRI features a framework that businesses can use to build on their capabilities and address the weak points identified during the initial review. The first stage involves learning about modern manufacturing processes and the potential of emerging technologies. Companies are then expected to assess their current capabilities and steps for improvement. Plans should be developed for adopting the kinds of technologies bound to boost efficiency and productivity.
The Skills Gap in UK Manufacturing
UK manufacturers have so far made limited use of SIRI. However, it’s likely to become more widely adopted as more businesses look to start, scale, and thrive in the process of digital transformation. Such increased use is bound to put a focus on the skills shortage and limited realisation of technological benefits. Indeed, a report produced by The Manufacturer and Barclays Corporate Banking has revealed that 75% of manufacturers identify skills shortages as their biggest barrier to growth. The UK also continues to lag behind other nations in terms of technological adoption across manufacturing industries. However, there has been some good news, as Innovate UK has partnered with the Skills Foresighting project in a project involving machine-tending robots. The aim has been to provide academia with some of the skills that will be vital to SMEs over the next 3 to 5 years.
While there’s an understandable focus on the benefits of digital tools and automation, UK manufacturers may be best advised to take a gradual approach - instead focusing on the attraction of talent and developing skills to make full use of such advanced technologies. Improved use could be made of the technologies that are already available to many UK manufacturers. The concern over automation replacing human jobs must also be addressed. In reality, AI and robotics can handle repetitive, hazardous, or labour-intensive tasks, freeing workers to focus on high-level creativity and strategic decision-making.
Building for the Future
Beyond the assessment of current capabilities, SIRI can be used to chart the course for future success. It can help in the setting of objectives sure to have the biggest impact on manufacturing effectiveness and profits. Such objectives should be developed in consideration of industry trends and best practices, giving companies the best chance of staying competitive and adapting to changes in the manufacturing space. Lessons should also be learned and insights drawn from other manufacturers in the approach to digital transformation.
Automate UK also supports tech adoption readiness by:
- Fostering a culture of innovation and entrepreneurship that supports the development and adoption of automation technologies
- Investing in education and training to ensure that the UK’s workforce is equipped with the skills and knowledge needed to thrive in a rapidly changing workplace
- Developing policies and strategies that support the adoption of automation across all sectors
- Ensuring that the benefits of automation are shared equitably across society and that the potential negative impacts are mitigated.
Keen to find out more about the benefits of SIRI and the types of support offered by Automate UK? Go ahead and register for the upcoming Forum (being held on Thursday 6th of March), where Automate UK’s Executive Chair, Peter Williamson, will be hosting a future-focused discussion with a panel of experts.