According to the 2021 Digital Transformation Assessment conducted by The Manufacturer and IBM, 67% of manufacturers have accelerated their adoption of digital technologies as a result of the coronavirus pandemic. Only 16% have suspended their digital adoption projects.
Why are manufacturers adopting digital technologies?
Many manufacturers have seen there is a connection between digital adoption and increased productivity, and efficiency. The 2020 Digital Transformation Assessment found that 92% of manufacturers reported that improving their ‘operational efficiencies’ was their number one business imperative. This demonstrates that manufacturers want to adopt digital technologies to become more efficient enabling future growth.
Manufacturers also want to free workers from repetitive tedious tasks so they can work on tasks that will add value to their business. This can lead to boosting staff morale as it is likely they will enjoy their work much more if repetitive tedious tasks are reduced or removed from their working day and because their job would become more interesting and rewarding.
Research has found that manufacturers are focusing on digital adoption in four main areas, these include:
- IT and/or data systems
- Product and/or customer growth
- Efficiency improvements
- Collaboration
What challenges are manufacturers facing when adopting new technologies?
The research found that manufacturers are facing a number of challenges when adopting digital technologies. These include:
- Time and resourcing
- Securing internal funding
- Organisational culture
Respondents cited that finding the correct stakeholders or investors can be difficult, especially those from overseas with the current international travel restrictions. Furthermore, respondents found that rolling out pilot projects successfully across the whole business has its difficulties.
How can we help?
At Hawsons we have a dedicated team of manufacturing accountants at our offices in Sheffield, Doncaster, and Northampton. Our specialist team offers a wide range of services which are tailored to meet your individual needs. Our understanding of the issues faced by manufacturing businesses means that we can proactively seek out ways for you to maximise your profitability and minimise your tax liabilities.
More from our manufacturing experts
You can find all of our latest manufacturing sector news and newsletters here.
If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.
Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.
More similar content
Are manufacturers becoming more sustainable?
In recent years slowing down climate change by reducing emissions has become a top priority for many countries around the world. In 2019 the UK government signed a legally binding target of net zero emissions by 2050. A survey of senior figures (managing directors,...
Government extends £1 million tax break
HM Treasury has announced that the Annual Investment Allowance (AIA) will remain at £1 million until 1 January 2022. The AIA allows businesses to claim same-year tax relief for capital investments in plant and machinery assets and was due to revert to £200,000 on 1...
UK manufacturers start to invest in sustainable growth
UK manufacturers start to invest in sustainable growth Manufacturers are beginning to invest in sustainable growth because of increasing market volatility. Sustainable growth is growth that is ethical, responsible, and repeatable and is vital for the long-term growth...
How has coronavirus affected manufacturing?
Manufacturing Update: How has the coronavirus pandemic affected the manufacturing sector? Introduction In this article, we will be covering how the coronavirus pandemic has affected the manufacturing sector. We will be using data from the Make UK’s...
British manufacturing could revive UK economy?
British manufacturing could revive the UK economy? The UK is now on the edge of the worst financial recession that most of us have experienced in our lifetime. It is not going to be easy to recover from the economic damage of the coronavirus. But it is going to be...
Tax Rates 2020/21
Introduction We have summarised the key rates and allowances which are fundamental to our business and personal lives. We are sure that you will find them a useful point of reference and have set out below a few examples of how they can be used. Personal tax rates As...
Hawsons are here to help COVID-19
During this difficult time Hawsons are here to help and support their clients as best they can The Government has announced new measures to help businesses through this difficult time. The first being the tax helpline to support businesses affected by coronavirus. If...
Bank of England Update for Businesses and Households
Bank of England Update for Businesses and Households During this difficult time for businesses and households, the Bank of England has put together a list of sites where you can find the latest updates from the Government. The following has been circulated by the bank...
Is the UK falling behind in automation and robotics?
Is the UK falling behind in developing automation and robotics? The First Industrial Revolution was led by the UK in 1760 and yet there are serious concerns that the UK is falling behind other countries. This was the conclusion to a report conducted by the House of...
Car Productivity slows down as Brexit Deadline looms
The shutdown of car plants hits UK production around Brexit deadline Car manufacturing declined in November as many car plants slowed down their production due to the previously expected Brexit date of 31 October. If you compare the statistics to November 2018 car...