14 July 2016

4th Industrial Revolution, will it affect you?

"GAPING HOLE" IN INDUSTRY 4.0 KNOWLEDGE

Just 8 per cent of manufacturers in the UK have a significant understanding of Industry 4.0 processes despite almost three fifths recognising that the "fourth industrial revolution" will have a big impact on the sector, a new study has found.

The report, published by BDO in association with the Institution of Mechanical Engineers (IMechE), found that while the increasing use of automation, data exchange, technology and wider supply chain communications provides both huge opportunities and threats to UK manufacturing, there remains a "gaping hole" in the education and understanding of Industry 4.0.

According to the BDO/IMechE report, increased productivity, better data analysis, increased competitiveness and lower manufacturing costs are the top ways in which Industry 4.0 will affect UK manufacturing.

However, a third of manufacturers are at risk of falling behind global competition having not invested in Industry 4.0 related technology or processes in the last two years. Worryingly, a quarter said they have no plans to invest in this area in the next two years and 44 per cent of those not investing said this was due to a lack of understanding.

Of those that are increasing investment levels, 16 per cent of companies expected to spend more than £500,000 before 2018, while 7 per cent plan to invest at least £5m.

Kevin Cook, partner at BDO, said: "It is surprising to see such low awareness of Industry 4.0 among UK manufacturers and clearly more needs to be done to educate, support and assist the sector as we make strides into what is likely to become the fourth industrial revolution.

"UK manufacturers need to push ahead or they will be left behind, especially when it is evident other countries are already moving ahead of the game with education and investment programmes being much more clearly supported by government than in the UK."

The report also found that 64 per cent of those surveyed said that production would be a key area when investing in automation systems and Industry 4.0 related technology, with 45 per cent and 25 per cent respectively saying research and development and logistics were key areas of focus.

Only 5 per cent said poor investment levels were due to the lack of external finance or grants.

Source: insider media - http://www.insidermedia.com/insider/national/gaping-hole-in-industry-4.0-knowledge