The report from Oxford Innovation Advice found that four-fifths of companies are looking to ‘digitally upskill’ their staff but costs and a lack of in-house knowledge are hindering those plans.
Over two-thirds (68 per cent) of the 239 businesses questioned are planning to invest in digital technologies, providing the new Labour government with an opportunity to deliver more specialised support.
Based on responses from the survey, Oxford Innovation Advice has developed a five-point policy action plan that it plans to submit to government to build on successful programmes, such as Made Smarter Digital Adoption.
The recommendations focus on providing basic level training and advice to manufacturing SMEs to convert critical analogue data capture processes into digital ones, thereby giving companies the ability to analyse processes and identify efficiency improvements.
Training should also be tailored to include a strong problem-solving focus, which could feature mentoring and one-on-one practical support to help manufacturers trial solutions and digitalise processes.
Finally, Oxford Innovation Advice is urging government to involve companies in the design of businesses support, whilst also ensuring that programmes are available nationally and connect SMEs to their peers.
“Nearly half [49 per cent] of the manufacturers we surveyed are predicting growth in the next six months and this is great news. However, as the report clearly shows, how many more could be increasing sales and creating jobs if they had more help to improve their digital skills?” Jane Galsworthy, managing director of Oxford Innovation Advice, said in a statement.
“The digital revolution is no longer the preserve of the larger companies, it’s here and needs to be embedded on the shopfloors, in the design hubs and in the offices of our smaller manufacturers.”
She continued: “What is clear is that SMEs need more government funding to help make this happen, with two thirds admitting they would accelerate their journey if the right specialist support was in place.
“80 per cent also said they want to upskill their staff, so the appetite is there – we just need to create the right business support environment to make it happen using a combination of more financial grants and practical assistance that ensures firms can embrace digital technologies.”
Oxford Innovation Advice surveyed manufacturing SMEs during August for its Skills and Digital Adoption report.
Other findings included:
· 46 per cent of companies are looking to hire new employees with the necessary skills for growth
· SME leaders feel that the Industrial Internet of Things is the most important digital tool for their business, followed by big data/analytics and Enterprise Resource Planning systems
· 83 per cent of firms want to embrace digital transformation to improve operational efficiency, with over half wanting to utilise it to reduce costs
· Nearly three quarters (72 per cent) of manufacturers believe cost is the biggest barrier holding back their digital journey
· The top three training approaches preferred by small to medium-sized enterprises are peer-to-peer learning, workshops/seminars and mentoring.
“Made Smarter Digital Adoption is a fantastic programme for helping SMEs who have already made headway in developing their digital capabilities,” said Galsworthy. “However, we feel that there is still a significant number of companies who need support to develop lower-level processes before they can start to apply Industry 4.0 technologies.”
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