Engineering news
UK manufacturing must embrace the next industrial revolution if it is going to retain its place as a force in the global economy, according to a new report.
The Business in the Community’s Future Insights Report on ‘The UK in 2030 Key Trends for Manufacturing’ – developed in partnership with Pinsent Masons – predicts the Internet of Things will be one of the main changes to hit the manufacturing sector over the next 15 years, opening up opportunities in new markets and the way mass produced products are personalised to meet consumer demand.
The report predicts that billion devices will be networked on the IoT in 2020, that by 2030 connected and autonomous vehicles could create an additional 320,000 jobs in the UK, and that the global market for additive manufactured products will grow from $3 billion to $100 billion per annum by 2020.
It predicts that demand for metals will increase by 30-50% by 2020 and that the value of low carbon technologies in the UK could reach £126.5 billion.
The research predicts that the concept of servitization, where manufacturers sell services alongside or instead of a product, will grow exponentially, therefore businesses need to focus on the whole solution not just the product.
It predicts that manufacturing will become more complex and interconnected, with challenges arising from greater cross-border working, data sharing and the need for new types of IP protection. It predicts reshoring to the UK could create up to 200,000 extra jobs by 2025 and add between £6 billion to £12 billion to the economy. Greater collaborative initiatives – such as ‘Horizon 2020’ and ‘Made in China 2025’ – will drive new opportunities, it estimates.
The report says that by 2020, 800,000 additional workers will be needed in manufacturing to replace those retiring, and estimates that global spending on robots will increase from $15 billion to $67 billion by 2025. As a result, it recommends that manufacturers needs to take advantage of a more urbanised world to locate factories closer to consumers to reduce costs. Companies should also develop new training and retraining schemes to secure the future capabilities manufacturing will need, it says.
David Isaac, head of advanced manufacturing and technology at Pinsent Masons, said: “A new industrial revolution is under way; one that is blurring the boundaries between physical and virtual. Developments like the Internet of Things and 3D printing are disrupting traditional business models and offering us opportunities to improve our lives, jobs and our productivity.
“This report sets out of some of the key developments that will affect the manufacturing sector between now and 2030 and how we can respond to them. Technology will be at the heart of these developments, but we shouldn’t underestimate resources, demography, politics and climate change.”
The 22-page report is also backed by Business in the Community members Anthesis, Cisco, Lloyds Banking Group, Walgreens Boots Alliance and WSP:Parsons Brinckerhoff.