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
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.
Free initial meeting
Senior Partner, Sheffield
More similar content
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...
Spring Statement 2022 Against a backdrop of rising inflation, Chancellor Rishi Sunak presented his first Spring Statement on Wednesday 23 March 2022. In his Spring Statement, the Chancellor announced a cut in fuel duty for petrol and diesel as he sought to ease the...
Introduction The CBI has recently conducted a survey of 224 UK manufacturers where 80% revealed that they are going to increase the prices of their products within the next three months. What factors are causing manufacturers to increase prices? The main factor...
A recent industry survey has shown that many UK manufacturers are optimistic that productivity and business conditions will improve in 2022. Despite the fact that many UK manufacturers will be facing many challenges such as: Retaining staff Inflation Rising input...
The government has recently launched it’s ‘Made in the UK, Sold to the World’ plan. What is the aim of the plan? The aim of this plan is to almost double UK exports around the world to £1 trillion per year. Last year the UK exported £600 billion in goods...
The Chancellor announced in the Autumn Budget an extension of the temporary increase in the Annual Investment Allowance (AIA) to 31 March 2023. Most corporate and unincorporated businesses are able to utilise the AIA to claim 100% tax relief on their qualifying...
Budget 2021 The Chancellor Rishi Sunak presented his third Budget on 27 October 2021. In his speech he set out the plans to "build back better" with ambitions to level up and reduce regional inequality. Main Budget proposals Tax measures include: a new temporary...
The government has decided to give manufacturers an additional year to comply with the new UKCA mark. The UKCA mark is a safety regulation that will be used to certify that a wide range of manufacturing products meet UK safety standards. Manufacturers were due to...
A new £20M funding programme is set to launch across the UK for manufacturers. The aim of the programme is to help manufacturers overcome supply chain issues caused by the global pandemic. The programme will aim to do this by assisting manufacturers with the...
In June 2021 the cost of running a factory increased at a record rate. This news caused concerns that prices of British-made goods will rise during the second half of 2021. According to the IHS Markit monthly survey of the manufacturing industry, manufacturers paid...