Lack of skills 'preventing desperately needed Industry 4.0 investment'

A lack of digital skills within companies is preventing “desperately needed” investment in Industry 4.0 technology, a survey has found.

Of the companies surveyed by manufacturers’ organisation the EEF, 88% said the issue was the biggest barrier to the roll-out of the hyper-connected processes such as the industrial Internet of Things and predictive maintenance. Only 43% are investing in Industry 4.0, the survey found.

“Investment in fourth Industrial Revolution technologies is vital to achieving a ‘step change’ in UK manufacturing productivity, given performance has flat-lined in the decade since the financial crisis,” the organisation wrote. “The survey shows that being innovative with technology is seen by manufacturers as the number-one factor to help boost productivity.”

New digital technologies are “key” to boosting productivity, said the EEF's head of business environment policy, Chris Richards. “While there has been some progress, and more companies are both aware of and investing in the fourth Industrial Revolution, it is clear the majority are not doing enough.”

The organisation called for more government focus on productivity, including announcing plans for the delayed Made Smarter UK Commission, which would bring together industry, government and academia to develop the country as a leader in industrial digitalisation.

“While there has been some positive progress on building the full fibre internet, we desperately need to see more progress if the UK is to achieve a leadership position,” said Richards. “An industrial strategy focused on productivity has a key role to play in helping companies push through the barriers that still remain.”

While a lack of skills and government focus has reportedly limited investment, the survey said system compatibility was the biggest barrier to success for companies that have invested in the technology. Some 42% of companies cited this as a concern.

A separate survey by YouGov for the EEF also revealed a surprising finding – despite highly-publicised concerns about increasing automation from experts and public figures such as Bill Gates, only 26% of people surveyed said companies should not adopt new technology if jobs will be lost.