EEF
A new report designed to help the UK’s manufacturers understand and prepare for the changes associated with the fourth industrial revolution has been published by EEF.
The manufacturer’s organisation says the report, entitled ‘The 4th Industrial Revolution – a primer for manufacturers’ has been written to to break the concept of 4IR down into digestible chunks and help manufacturers make the connection between theory and practice.
It uses real-life manufacturing case studies to enable them to then envisage how 4IR technologies and techniques could work in their own business.
Crucial transformation
The move follows a series of focus groups with manufacturers across the UK and research showing that just four in ten (42 percent) have a good handle on 4IR. At the same time, it says manufacturers are aware that 4IR will lead to crucial transformation both at a business and industry level.
Over six in ten manufacturers (61 percent) say digital technologies will boost productivity, while three quarters (74 percent) say that 4IR will fundamentally change customers’ expectations. This in turn will require firms to change and adapt in order to meet marketplace needs.
Almost seven in ten (68 percent) manufacturers say that 4IR will happen faster than previous changes in manufacturing. And while most are seemingly confident about managing the pace of change, almost four in ten (39 percent) are concerned about their firms’ ability to keep up.
Smarter production and jobs boost
The report says that 4IR will herald smarter production, relationships and products and will boost the number of high-skilled jobs in the UK.
However, it warns that the speed of change will be “unprecedented”, leaving little room for complacency. Without industry and supply chain leadership, coupled with a supportive industrial strategy, the UK could be left behind, it claims.
“4IR is happening and the UK’s success in this global industrial transformation will hinge on manufacturers’ strategies and ambitions. It goes far beyond simply investing in new technologies and techniques – this new era requires cultural shifts, new business models and the ability to adapt and innovate,” explained Lee Hopley, Chief Economist at EEF.
“This report is about sharing this insight with manufacturers but, more importantly, also providing practical examples so that 4IR stops being about theory and starts being about something that manufacturers can genuinely see how and why to apply. By helping to connect principle to practice, we aim to put our sector in the driving seat, building confidence and awareness so that UK manufacturers can be at the forefront of this new industrial wave.”
Greater communication
The report identifies a need for greater communication across supply chains and industrial sectors about the benefits. And, while the 4IR journey may start with optimising existing business processes, it says there are steps beyond technology that manufacturers need to take to prepare their business.
These include applying visionary thinking, changing the internal culture towards innovation and boosting the role of IT and technology in decision making.
The case studies centre on smarter relationships, smarter production and smarter products. They include creating a digitised warehouse using RFID tracking of inventory to create a smarter inventory management system, using production line simulation or virtualisation to identify the most efficient layout for production and the use of always-connected products that allow predictive maintenance.
The report – The 4th Industrial Revolution – a primer for manufacturers – can be downloaded here.