In a recent report, nearly three-quarters of small to medium-sized manufacturers (SMEs) in the East Midlands expressed a pressing need for increased government funding to facilitate their digital skills transformation. The report, produced by Oxford Innovation Advice, highlights the challenges these businesses face in upskilling their workforce and adopting new technologies.
Key Takeaways
73% of SMEs in the East Midlands seek more government funding for digital skills.
90% of companies aim to digitally upskill their staff, facing barriers like cost and lack of knowledge.
59% plan to invest in digital technologies, indicating a significant opportunity for government support.
A five-point policy action plan has been proposed to address these challenges.
The report reveals that 90% of surveyed companies are eager to enhance their digital capabilities, yet they encounter significant obstacles, primarily financial constraints and insufficient in-house expertise. With 59% of businesses planning to invest in digital technologies, there is a clear opportunity for the new Labour administration to provide specialized support that could unlock the potential of UK industry.
The Five-Point Policy Action Plan
Oxford Innovation Advice has developed a comprehensive five-point policy action plan aimed at assisting SMEs in their digital transformation journey. The key recommendations include:
Basic Level Training: Providing foundational training and advice to help SMEs transition from analogue to digital processes.
Problem-Solving Focus: Tailoring training to include practical support and mentoring, enabling manufacturers to trial solutions effectively.
Involvement in Program Design: Encouraging government to involve SMEs in designing support programs to ensure they meet real needs.
National Availability: Ensuring that support programs are accessible nationwide, connecting SMEs with peers for sustained digital growth.
Financial Support: Advocating for increased financial grants and practical assistance to help firms embrace digital technologies.
The Current Landscape
According to the survey conducted in August, several key findings emerged:
Growth Predictions: 65% of manufacturers in the East Midlands anticipate growth within the next six months.
Hiring Needs: More than half of the companies are looking to hire employees with the necessary digital skills.
Digital Tools: The Industrial Internet of Things is viewed as the most crucial digital tool, followed by big data/analytics and Enterprise Resource Planning systems.
Operational Efficiency: 86% of firms aim to leverage digital transformation to enhance operational efficiency, with over half seeking to reduce costs.
Time Constraints: 46% of manufacturers cite time as the primary barrier to their digital journey.
Conclusion
Jane Galsworthy, Managing Director of Oxford Innovation Advice, emphasized the urgency of addressing these challenges. She noted that while programs like Made Smarter Digital Adoption have been beneficial, many SMEs still require support to develop foundational processes before they can fully engage with advanced technologies.
The report will be presented to government officials to advocate for the necessary funding and support that East Midlands SME manufacturers need to thrive in the digital age. With the right resources and guidance, these businesses can significantly enhance their productivity and contribute to economic growth in the region.
Sources
New report calls on more Government funding to help East Midlands SME manufacturers make the digital skills transformation - Love Business East Midlands, Love Business East Midlands.
New report calls on more Government funding to help East Midlands SME manufacturers make the digital skills transformation - Love Business East Midlands, Love Business East Midlands.