Could advanced technology help revive Scotland’s manufacturing industry? - Maddie Walker

With March upon us, spring has sprung across much of the UK. But one area remains distinctly frosty: manufacturing. The latest figures from the S&P Global Manufacturing PMI report last week confirm that UK manufacturing production has declined for the 12th consecutive month in a row.

Multiple challenges have beset the industry. Access to raw materials has been limited due to permacrisis, with disruption in the Red Sea the latest in a string of supply chain issues. The rise in the cost of energy has had a dramatic effect on the overall price of production; and many organisations are experiencing a drop in customer demand due to the cost-of-living crisis.

Whilst these systemic problems are outside of manufacturers’ control, responding to them with caution risks plunging the sector into stagnation. UK manufacturers must take steps to address these challenges by reassessing the way they operate and rethinking how products are made more efficiently.

Investment in advanced technology is an opportunity to regain some control and act strategically. From AI and digital twins to automation and advanced robotics, exciting technological developments are applicable across the entire production process. For example, digital twins of machines can spot problems before they occur and optimise production processes, which improves reliability and quality of output. Optimising processes also increases energy efficiency, critical to compensate for high energy prices. What’s more, it lays the foundation for net zero and zero waste initiatives, crucial for securing the future of manufacturing.

​The manufacture of advanced medicines offers exciting opportunities for growth (Picture: stock.adobe.com)

Whilst technology cannot stop unpredictable events from befalling global supply chains, it can offset their consequences. For example, by linking data sources, manufacturers can create smart end-to-end control towers to monitor processes, generate alerts and reroute production. Leading companies have started to build digital twins of their extended supply chains and used simulation to “stress test” them, allowing them to optimise their supply chains for catastrophic scenarios. Today, 78 per cent of businesses need at least a week to fully understand the impact of issues in their supply chain, meaning there is still plenty of room for improvement.

Where does Scotland fit into this puzzle? It just so happens that Scotland has all the missing pieces in place already.

Scotland is home to leading research and development institutions, including 19 universities, ten science parks and 15 per cent of the whole UK’s research infrastructure. It also has a unique blend of technology talent for manufacturers to tap into as their requirements shift from mechanical engineers to software engineers, making it an attractive investment opportunity to base facilities.

There is already a fantastic innovation ecosystem to support manufacturers with R&D. As recent partners of the National Manufacturing Institute Scotland, Accenture is already engaged with an ecosystem of partners looking to drive innovation to create growth and productivity improvements.

Maddie Walker, Industry X Lead for Accenture, UK & Ireland

The growing space sector, renewable energies, and manufacturing of advanced medicines – all of which require high-tech operations and facilities – hold exciting opportunities for growth in Scotland that could spur the rest of the sector.

Scotland’s manufacturing sector employs over 179,000 people, is responsible for more than 50 per cent of its international exports and nearly 50 per cent of business expenditure on R&D. It’s in an excellent position to provide the green shoots of optimism the UK manufacturing sector desperately needs. With the right investment in their digital infrastructure, and in the right places, UK manufacturers can emerge from this winter more resilient than ever.

Maddie Walker, Industry X Lead for Accenture, UK & Ireland