The fourth
industrial revolution (Industry 4.0) requires transformational change at a pace
that many manufacturers are not matching, according to a new report from KPMG.
It also warns that
if they continue on the current trajectory, they are likely to be disrupted by
competitors and new market entrants.
Philip Harris,
Associate Partner and Industry 4.0 Country Leader at KPMG in the UK, said:
“It’s clear from many of the conversations we’re having with manufacturing
organisations that few have developed or moved forward with Industry 4.0
strategies or plans, and some still don’t understand how it will affect their
business.”
KPMG’s latest report
and recommendations, whilst global in nature, are even more important for the
UK’s makers. The UK is significantly behind its G7 counterparts with
productivity and has been the weakest of the four European countries for almost
a decade. Whilst the latest official statistics showed that job growth in the
manufacturing industry has risen, productivity has fallen and it’s here that
many manufacturers are missing a trick with Industry 4.0.
Harris commented:
“Industry 4.0 presents a huge opportunity for the UK’s manufacturers to improve
productivity, but it could also be a threat to those who don’t embrace it and
fall even further behind. They have a chance to catch up, but only if they act
now.
"What we’re
seeing, however, is that many don’t fully understand what Industry 4.0 is, and
those who do are still in the early stages experimenting with it. As a result,
very few are implementing it at scale based on a well-thought through roadmap or
strategy.
“Manufacturers need
to move from experimenting with Industry 4.0 to embedding it into their entire
organisation to ensure they capture the benefits. Most are talking about it,
but very few are doing it at scale to really benefit from the rewards it can bring.
“Brexit uncertainty
continues to loom, but Britain’s manufacturers can’t afford to let this
distract them, particularly as they have an opportunity to leapfrog the
competition on productivity if they get their industry 4.0 strategies right.
"If they don’t
act now and act boldly, then there’s a higher risk that international
competitors, particularly in the EU, will ramp up faster and leave the UK even
further behind.”
