Small and medium-sized manufacturing companies in the UK will face a lot of challenges over the next few years however we believe that the five key ones will be skills shortages, financial constraints, technological complexity, cybersecurity concerns, and supply chain disruptions.
Ensuring that your organisation has a comprehensive digitalisation strategy can greatly help in addressing these and drive growth by leveraging emerging technologies cost-effectively.
Let’s dive in and look at some of these challenges. One of the primary hurdles is the lack of digital skills among employees (across an organisation) and the difficulty in recruiting talent with the necessary expertise or knowledge. To overcome this, a lot of companies look to boutique/niche consulting partners and of course cloud-based training platforms as well as utilising AI-powered learning management systems to upskill their teams. Free resources like Google Digital Garage or low-cost options such as Udemy for Business can provide accessible training in digital skills.
Financial constraints often limit investment in new technologies however, cloud computing offers a scalable and cost-effective solution. By adopting Software-as-a-Service (SaaS) models, SMEs can access advanced manufacturing software without significant upfront costs. For example, cloud-based Enterprise Resource Planning (ERP) systems like the open source Odoo or ERPNext provide affordable options for streamlining operations and improving efficiency and of course there are myriad other commercially-available ERP systems to help any type of organisation.
The complexity of new technologies can seem overwhelming for some however, adopting a strategic approach to digitalisation can help simplify this by focusing on key areas with immediate impact. For example, implementing an automated Accounts Payable solution or adding Internet of Things (IoT) sensors for predictive maintenance are a couple of such areas. Low-cost IoT platforms like Blynk or ThingsBoard again offer low-cost solutions and help enable manufacturers to monitor equipment health in real-time, reducing downtime and maintenance costs.
Cybersecurity is a growing concern as digitalisation increases, more and more devices come online and are connected – blockchain technology offers a solution by providing secure, tamper-proof data management. For instance, manufacturers can use blockchain and AI to create digital twins of their factories, enabling secure simulation of production plans and optimisation of processes. Open-source blockchain platforms like Hyperledger Fabric provide cost-effective options for SMEs to implement this technology.
Finally, as we all saw during the COVID-19 global pandemic and latterly, the Russia-Ukraine conflict, supply chain disruptions pose a significant challenge to any manufacturing business. AI and blockchain can be combined to create resilient and transparent supply chains and using AI algorithms to help predict demand fluctuations can lead to optimised inventory levels, while blockchain ensures traceability and authenticity of materials. Free and open-source tools like TensorFlow for AI and Ethereum for blockchain enable SMEs (with the right assistance) to experiment with these technologies without substantial investment.
By adopting a phased approach to digitalisation, focusing on these key areas, UK manufacturing SMEs can not only survive but thrive in the evolving industrial landscape. At McKinney Haarcourt our experts can help to design, build and implement a digitalisation strategy that will deliver real gains in productivity and cost-effective streamlining, whilst ensuring resilience, agility and continuity. Get in touch using the form below to see how we can help you on your digital journey.
