Technology
KPMG has released its latest Global Manufacturing Outlook, in which it pinpoints the British market as one that must continue to embrace innovation in order to grow.
UK manufacturing leaders have said their strategic focus is indeed innovation-led, with attractive British corporation taxes such as the Patent Box supporting their efforts to embrace new technologies and achieve ever more competitive efficiencies.
The report revealed than nearly half (48 per cent) of UK manufacturers stated their business's strategic focus is on innovation and that just two per cent felt British taxes are a major obstacle for their company in the coming 12 months-to-two years.
Head of Manufacturing at KPMG Stephen Cooper said: "The UK has always been viewed as a leader in manufacturing innovation and there are clear signs that this will continue to be the case. Encouraging tax rates, stable markets and growing investment in new technologies and advanced materials – such as graphene – continue to provide competitive advantages for UK manufacturers."
The survey revealed that half of UK respondents agreed that they plan to spend upwards of six per cent of revenue on research and development and innovation over the coming two years - which is a jump of 21 per cent from what they spent in the past two years.
With disruptive technologies like 3D printing changing the manufacturing landscape, product development cycles from concept to commercialistion have been slashed from years to months and weeks, yet one-to-five years is the time horizon for the innovation roadmap for nearly two-thirds (64 per cent) of UK manufacturers.
Cooper added: “UK manufacturers are keenly aware that innovation will be the key to future growth. They also know that timelines are shrinking - the lead time from concept to commercialisation is dropping dramatically for those manufacturers hoping to remain competitive in today’s technology-driven business environment."
Engineering talent in the UK is strong, but the availability of fresh blood remains an issue. The survey highlighted that partnering with academic institutions (55 per cent) and investing in internal training and apprenticeship schemes (52 per cent) is a way companies are addressing their personnel shortage.
“The tightening access to talent could limit UK manufacturer’s ability to evolve, grow and adopt new technologies. Whilst there is additional effort being made to increase the number of apprenticeships, which can only be good, more must be done to attract young people to become engineers," Cooper stated.
"Ongoing retention within the manufacturing sector is ever more challenging whilst recruitment of other smart and innovative people, is necessary to drive forward the manufacturing models of tomorrow."
“These are exciting times for the UK, and manufacturing is evolving rapidly," he added. "In the automotive industry for example, ‘connected cars’ offers the UK huge opportunity to develop and commercialise new technologies. This type of activity, in turn, will attract new talent, new investment and new technologies to the wider UK manufacturing sector."
