As the UK’s manufacturing sector seeks to compete in an increasingly volatile global market, industry leaders are battling to remain competitive.
While recent industry reports point to positive signs of growing demand and continued strength on the global stage, significant challenges remain. Skills shortages and rising costs continue to put persistent pressure on the sector, while global tariffs and geopolitical turmoil are making sustained growth and greater productivity increasingly vital for maintaining resilience.
This National Manufacturing Day, industry leaders share their thoughts on what British manufacturing needs to maintain competitiveness in an uncertain global market, including how to capitalise on emerging technologies, equip its workforce with the right skills and the importance of connectivity in an increasingly interconnected manufacturing ecosystem.
Importance of tailored AI over flashy hype
AI-enabled ERPs and software offer manufacturers significant opportunities to improve productivity and competitiveness. However, how these technologies are adopted will make the difference between delivering long-term value and simply adopting AI for the sake of it.
For Shane Taylor, Manufacturing Technical Specialist at ECI Software Solutions, the focus should be on practical improvements rather than wholesale transformation: “British manufacturing has now grown for ten months in a row, and confidence is picking up. That is encouraging, but growth slowed in August and high costs are still putting businesses under pressure. The sector is moving in the right direction, but manufacturers will need to keep finding ways to improve productivity.
“That does not mean ripping everything out and starting again. Often, it begins with making better use of the information a business already has. When production, stock and supply chain data sits in one place, teams can spot problems earlier, spend less time chasing updates and plan with greater confidence.
The potential for this practical approach is particularly clear in production planning. UiPath Director of Supply Chain Solutions Will Dutton says: “Despite geopolitical shocks and tariffs causing frequent disruption, many production planning systems remain too rigid to respond in real time. Supply chain planners often bridge this gap by drawing on expertise that sits outside those systems. Agentic AI can help bring that knowledge directly into the planning process.
“Agents can interpret signals such as delays to critical parts arriving at a manufacturing facility or sudden changes in demand, assess them against rules set by planning teams, and work with forecasting and optimisation tools to identify the best response. Routine decisions within agreed parameters can be handled automatically, while more complex issues, such as a significant production delay, can be escalated to employees with the relevant context so they can act quickly. By orchestrating agents alongside existing systems, automation and employees, manufacturers can capture the expertise of individual planners and respond faster to disruptions on the production line. Success should ultimately be measured by business outcomes – including faster decisions and more responsive operations – rather than the number of agents deployed.”
Better connectivity brings the industry together
As manufacturers seek to capitalise on automation and AI, they also cannot forget the connectivity that allows technical and corporate teams to continue to work together seamlessly. Jan Diekmann, Head of Business Development, Manufacturing and Warehousing at Ericsson Enterprise Wireless Solutions, suggests that there’s little value in investing in AI, automation or augmented reality if the connectivity underneath can’t support it. Reliable connectivity helps people, machines and systems work together in real time, so manufacturers can get the most from new technology.
Jan believes that intelligent automation, AI and augmented reality are redefining the factory floor, giving manufacturers the opportunity to attract a new generation of digitally skilled talent but reliable connectivity to support and maintain this: “As manufacturers deploy smart technologies, they need secure, reliable, high-speed connectivity, such as private 5G, to provide an engine to support real-time data exchange and automation in demanding environments. This is the starting point to help turbocharge digital driven automation through reliable and secure connectivity. It enables seamless collaboration between machines, systems, and people, making day-to-day operations more efficient. Getting these foundations right can help manufacturers create safer, more innovative workplaces where the next generation will want to build their careers.”
In the age of AI, skills remain the bedrock of the industry
It’s not just the integration of AI into daily operations that will ensure the resilience of Britain’s manufacturers. Firms and workers need the right skills to ensure AI is integrated properly and used effectively in order to gain the most value from it. This is the belief of Faye Ellis, Principal Training Architect at Pluralsight, who says, “Investing in new tools will only pay off if employees have the engineering and technical skills to use them effectively, from understanding automated processes to working with data and AI-enabled equipment. Continuously developing these skills is an essential part of building a modern manufacturing workforce”.
Faye also believes there needs to be a redefinition of what it means to work in advanced manufacturing in the modern age, “We also need to challenge outdated perceptions of manufacturing, and show young people the opportunities a career in the sector can offer. Greater investment in apprenticeships and work placements will be key to attracting new talent, building the skills the industry needs and creating a stronger pipeline for the future”.
Q5D CEO Steve Bennington agrees, saying that the skills needed in manufacturing are evolving as factories become more automated and digital. Steve says “The idea of what a career in manufacturing looks like has drastically changed in recent years. In a modern factory today, you will see traditional engineering sit alongside robotics, software, automation and digital technology. This changes the mix of skills manufacturers need, with a growing demand for people who can combine engineering expertise with newer digital capabilities.
“That creates a real opportunity for the next generation entering the industry. As more repetitive processes are automated, people can focus on problem-solving and adding value. Britain has a strong engineering heritage, and here in Bristol, we see the depth of that talent first-hand. The challenge now is building on that and developing the digital skills modern manufacturing increasingly needs.”
“My advice to anyone starting out today, is build both traditional engineering and digital skills in tandem. If Britain wants to build and scale more of its own advanced manufacturing capability, investing in the people who can bridge that gap matters just as much as investing in the technology.”
Making these career paths visible to the next generation will be just as important as developing the technical skills themselves. Sharon Budworth, Vice President People and Internal Communications at Pragmatic Semiconductor, says “National Manufacturing Day is an opportunity to challenge outdated perceptions of what skills it takes to forge a career in the industry. Modern manufacturing relies on advanced engineering, automation, data and problem-solving, creating roles that require a broad mix of technical and creative skills.
“Yet there remains a disconnect between the skills young people see in themselves and the careers they associate with manufacturing. Closing that gap requires more than simply promoting the sector. Young people need opportunities to see modern manufacturing in practice and understand how the subjects they study, from maths and computing to engineering, translate into real-world applications.
“Early exposure is particularly important. By giving students practical experiences and access to modern manufacturing environments, we can make these career paths more tangible and demonstrate the range of opportunities available. Building the future manufacturing workforce starts with helping young people recognise that there is a place for their skills in the industry.”
AI can act as a single source of truth
Manufacturing organisations are managing several transformations at once. AI is reshaping how work gets done, while digital technologies continue to evolve and customers’ sustainability expectations are rising. For manufacturers to realise the full potential of AI, however, the right foundations need to be in place. Connected and trusted data, integrated workflows and a workforce with the confidence to act on AI-driven insights will all be critical.
Asif Moghal, Director, D&M Market & Industry Development at Autodesk, argues that manufacturers need to get these fundamentals right before they can fully take advantage of AI – “AI has already boosted productivity. But not enough organisations are checking whether their data could actually survive the attempt”. Asif believes that manufacturers need to do the boring before being able to fully take advantage of AI, “Investment was never the hard part. The businesses actually pulling ahead aren’t the ones who spent the most; they’re the ones who did the unglamorous work first: connecting their data, integrating their workflows, and making sure the people using these tools actually trust what they’re being shown. Skip that, and AI just helps you make bad decisions faster and with more confidence.
“The real opportunity in front of UK Manufacturing isn’t a race to adopt more technology. It’s the harder, less exciting work of getting the foundations right, together, rather than bolting AI onto a business that was never built to use it well.”
Martin Tombs, Field CTO EMEA at Qlik, similarly believes that data, AI and analytics are reshaping modern manufacturing and creating new opportunities for the next generation: “Engineering remains at its heart, but the growing use of data, AI and analytics is creating new roles and career paths for the next generation.
“These technologies are already helping manufacturers on the factory floor, from spotting equipment failures to tackling quality issues and improving production in real time. But making the most of them depends on people having the data literacy and digital confidence to understand the insights, apply their own judgement and make better decisions.”
The AI balance
The consensus from the industry is clear, fostering the right technical skills alongside targeted, tailored AI integration will help build long-term growth and resilience for the sector.
AI has the potential to make British manufacturing more productive and responsive. However, simply adopting the latest technology will not be enough. Manufacturers need the right foundations underneath it, from reliable data and connectivity to a workforce equipped with the skills to use these tools effectively.
Ultimately, the future of British manufacturing will depend on getting the balance between people and technology right. AI can automate processes, support faster decision-making and help manufacturers respond to disruption, but its greatest value will come when it complements the expertise already within the industry. Investing in both the technology and the people who will use it will be essential if UK manufacturing is to turn today’s momentum into sustainable long-term growth.
