ERP ranks third most effective technology for manufacturers
ERP ranks third most effective technology for manufacturing businesses, yet a lack of product knowledge and skilled personnel limits its adoption by SMEs
A new study by the Oxford Innovation Group urges the UK Government to provide more funding to help bridge the digital skills gap in small and medium-sized manufacturers. The study emphasises that this support is essential to help these manufacturers grow and thrive.
The study, based on a survey of over 200 UK manufacturing SMEs across industries such as engineering, food and drink and electronics, was carried out to assess ambitions for digital transformation within the industry with a particular focus on skills.
Growth and digital transformation
Despite challenges, nearly half (49%) of respondents were optimistic about increasing sales over the next six months and more than two thirds (68%) plan to invest in digital technologies during that period. The primary drivers for this investment are to improve operational efficiency (83%), reduce costs (53%) and enhance the customer experience (47%).
The industrial internet of things (IIoT), big data and analytics and ERP rank the three most effective technologies for SME manufacturing businesses. However, cost implications (72%), a lack of knowledge about products (56%) and a lack of skilled personnel (49%) are the biggest challenges SME manufacturers face when adopting new tech.
Bridging the skills gap
To close the gap in knowledge and skills, 80% of respondents are upskilling their existing workforce, while 46% said they were hiring new employees with the required expertise. 84% of respondents agreed that an increase in funding for training would significantly help them enhance their digital skills and the study strongly recommends the UK Government makes more support available in this area for manufacturing SMEs.
While the Government’s Made Smarter initiative already helps SMEs access digital technologies, the study revealed that only 42% of respondents have already engaged with the programme, and suggests there is a big gap between those who have already made progress in harnessing digital technologies and those who need much more support.
Click here to read the full report.
How 123Insight can help
SME manufacturers can increase their productivity and competitiveness through the adoption of ERP software solutions. We’ve helped hundreds of small to medium-sized manufacturers make transformative business improvements with our award-winning 123Insight software. Our extensive training programme equips teams with the essential skills and knowledge necessary to ensure a smooth and successful implementation.
Speak to a specialist to find out more.