Can the UK lead the digitisation of manufacturing?


Can the UK lead the digitisation of manufacturing?

It’s an important question for Britain’s economic future.

Debating the issue in the recent Rolls-Royce Future Technology showcase were Hamid Mughal, Rolls-Royce Global Manufacturing Director, FT Industry Editor Peggy Hollinger, Daniel Thornton, Programme Director at the Institute for Government Andrew Churchill, Managing Director JJ Churchill Ltd and Nigel Whitehead, CTO at BAE Systems.

A business leadership challenge

Looking at the broad question, Hamid Mughal explains that digitisation of Manufacturing is not a technological challenge but a business leadership challenge. Brexit will have a significant impact on the business environment but on a positive note, UK exports will be essential in a post-Brexit world says Andrew Churchill. The current short-term focus however is a key barrier to moving forward, he claims.

“If companies in the UK don’t capitalise on industrial digitisation, we will be left behind. But the problem is that SMEs are traditionally slow to change. However, if we don’t change and go forward, our customers will move from the UK into other markets.”

Outlining the function of government in the coming decade, Daniel Thornton says its role is to create an environment where individuals and companies can flourish.

“People reach for digitisation as an answer to fix their businesses, but this is about changing processes and business models. Technology can assist here but it is not a change in itself.”

But for those who are forward looking, there are big opportunities as we enter the 4th Industrial Revolution with the promise of 175,000 extra jobs for the UK economy.

A crucial moment 

This is an important moment in the development of technology, according to Nigel Whitehead. “While digital opportunities allow us to consider lots of different options, we need to ask the question, what does the UK want to be? Do we want to be a manufacturing nation or something different?”

If the answer is manufacturing then the country needs to focus on building products faster through digitalisation, finding new markets and reinvesting the profits. The shortage of relevant skills is a key challenge but there is an opportunity for a national leadership event to pull a national approach together.

Being number one

The panel agree that government and industry need to work together to drive progress and to look to other countries, such as Germany, for best-practice examples. We need to find a common purpose, says Andrew, with the government providing a more joined-up, cross-departmental approach. But Daniel warns against looking to government to fix business problems.

“While government can bring people together, companies need to deal with the issue of digitisation themselves, do the research and collaborate with partners. Agile skills are very important in today’s climate.”

The skills shortage

Andrew highlights the current situation where only 50% of apprenticeship positions have been filled in the last year, citing the reason as a lack of technology skills on the curriculum. Calling on businesses to become more engaged with the education system or risk the UK being left behind, he points out that the onus is on both government and industry to establish the key skills needed for the workforce of the future.

This is a significant national issue, says Hamid, and the government, political parties and industry will need to come together to create a long term strategic roadmap. Calling on the National Strategy review to provide a framework to solve the issue across the UK, Nigel says this is a job for both government and industry.

We should trust industry to play a leading role in setting the digitisation, says Hamid, and to involve the broader national stakeholders in creating innovative ways to address this opportunity. “We play in an intensely competitive global environment and we are acutely aware of the unparalleled focus and investment other countries are putting into making their digitisation capability a major source of economic growth. Let’s start believing that we can be one of the global leaders in this space and let’s start planning and journey with greater belief, urgency and commitment.”

Looking to the future

One of the key challenges, as Andrew sees it, is the current lack of forward thinking, explaining that companies are used to talking in the short-term rather than planning in long-term cycles. In terms of skills and training, there is a certain reticence to be involved in personal development training for staff, which also needs to change.

Finally, we need to think about how our more traditional Manufacturing processes will evolve going forward. “The development of automation would provide a good illustration. Early automation systems essentially represented mechanical systems that in simple terms are able to ‘act’ upon instructions. The addition of sensors and controls enabled this mechanisation to not only ‘act’ upon instructions but to also ‘act and sense’ - examples include, adaptive robotic grinding. By linking digitisation and IoT, the evolving Cyber physical systems are making the greatest shift of all into groups of machines which can now ‘act, sense, & communicate’, and ultimately as AI develops, ‘decide & think’. Hence, the industrial robots will increasingly become fully integrated with the fundamental manufacturing environment and be smart and dexterous enough to carry out highly complex and detailed activities; all at very high productivity levels.”