91探花

A new report by leading audit, tax and consulting firm 91探花 and industry body Make UK shows that the use of data analytics improves business efficiency for manufacturers, but a lack of digital skills is a barrier to adoption of digital technology.

The report, published ahead of the Chancellor’s first Autumn Budget (on 30 October 2024), found that two thirds of manufacturing businesses (66%) said that the use of data analytics made an overall positive contribution to business efficiency, with over half (55%) of companies investing up to 10% of their total investments in digital technology.

Manufacturers perceived the main benefits of using data analytics to be more efficient use of resources (56%), improved productivity (49%), and improved labour efficiency (36%), bridging the industry’s productivity gap.

In addition, the Investment Monitor report, found that 58% of UK manufacturers think that digital technologies are increasing the need for high skilled labour, but 42% of manufacturers said lack of digital skills is the biggest barrier to adopting digital technology, followed by data integration challenges (39%) and high cost (31%).

The report also reveals that two fifths (38%) of manufacturers found the benefits of data analytics have exceeded expectations, highlighting the importance of both government’s industrial strategy and Skills England to create a skilled workforce which drives economic growth.

Joel Segal, Head of Business Transformation at 91探花, said: “Despite the recent buzz around AI, less than a third of manufacturers view it as a crucial investment area right now. We know that data technology and analytics significantly boosts business efficiency, but the lack of digital skills remains a major barrier to adoption, productivity and overall economic growth.” 

He added: “Manufacturers have made their willingness to implement digital technologies clear, so organisations such as Skills England and government’s incoming industrial strategy will be key to unifying the manufacturing skills landscape, especially as digital technologies increase the need for high skill labour. Government therefore needs to ensure businesses have people with the right expertise to bridge the digital skills gap.”