UK Manufacturing Growth Hinges on Tech and Digital Skills

Barclays and The Manufacturer’s report “Mind the Gap” surveys over 100 UK manufacturers, highlighting that UK manufacturing output per hour is 10% below the G7 average and 16% lower than Germany. 56.4% of UK manufacturing leaders see productivity in decline, citing workforce challenges (56.5%), slow technology adoption (40%) and supply chain inefficiencies (31.3%) as primary factors. Small firms face cost barriers to tech trials, while larger firms note a decade-long lag in digital uptake. Disparities in digital transformation impede real-time efficiency gains. Nearly half of respondents plan to ramp up digital transformation efforts in the next 12 months, with 45% prioritizing upskilling, 29% supply chain optimization and 26% enhanced data management. The report warns that sustained focus on skills, technology adoption and process efficiency is essential to maintain global competitiveness.