UK productivity hindered by digital skills deficit – report

A new report by RSM UK and Make UK shows that the use of data analytics improves business efficiency for manufacturers, but a digital skills deficit is hindering adoption of the technology.

58 per cent of UK manufacturers think that digital technologies are increasing the need for high skilled labour
58 per cent of UK manufacturers think that digital technologies are increasing the need for high skilled labour - AdobeStock

The report follows a survey of over 200 business leaders from across the manufacturing sector. It found that 66 per cent of respondents believe that the use of data analytics made an overall positive contribution to business efficiency, with 55 per cent of companies investing up to 10 per cent of their total investments in digital technology.

Manufacturers perceived the main benefits of using data analytics to be more efficient use of resources (56 per cent), improved productivity (49 per cent), and improved labour efficiency (36 per cent).

In addition, the Investment Monitor report found that 58 per cent of UK manufacturers think that digital technologies are increasing the need for high skilled labour, but 42 per cent of manufacturers said lack of digital skills is the biggest barrier to adopting digital technology, followed by data integration challenges (39 per cent) and high cost (31 per cent).

The report also reveals that 38 per cent of manufacturers found the benefits of data analytics have exceeded expectations. 

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