Make UK survey highlights how digital innovation holds the key to manufacturing growth

Rising costs and economic uncertainty will prove major challenges for our movers and makers in the coming months. Make UK’s Executive Survey 2025 takes a deep dive into manufacturing sentiment and explores what actions are needed to secure a competitive edge. The research highlights that the most optimistic businesses are accelerating plans to adopt technology as a means of boosting productivity and reducing overheads. Building digital capabilities with the use of fit for purpose ERP will help manufacturers raise their game and future-proof operations.

Delivered by Make UK in association with PwC UK, the survey sets a scene of both optimism and realism. In light of changes to National Insurance contributions and increased minimum wages levels, 92% of respondents expect employment costs to rise in 2025, whilst 51% expect the high cost of energy to be their biggest challenge.

Pressures on the bottom line are increasing for businesses large and small. Yet the most interesting findings from the survey are those that explore what strategies businesses intend to employ to mitigate these rising costs. UK manufacturers are always looking for ways to drive continuous improvement and 68% of those surveyed said they plan to tackle greater costs through productivity improvements. Driving efficiencies and embracing more streamlined working practices will be critical in building resilient business models and gaining competitive advantage.

Building digital capabilities

Offsetting costs through digital transformation and disruptive technologies is now a priority for the most forward-looking manufacturing businesses. In her Foreword to the survey,

Cara Haffey, Leader of Industrials and Services at PwC UK, said: “Technology, cloud and artificial intelligence (AI) are seen as significant drivers of growth, with almost one third of manufacturers (29%) citing this as an opportunity for 2025. When we consider only 7% are focusing on headcount expansion, it seems that growth will not necessarily equate to new jobs, but instead a focus on output…”

She added: ”Given the cost environment, there is now a growing sense manufacturers are taking investment in technology more seriously. It needs to deliver wholesale transformation across the value chain, whether that be increased productivity, enhanced products, data to improve operational performance, or reduced waste.”

More than half (52%) of manufacturers expect an improvement in deployment of technology in 2025. It will form a key component of business action plans as they look for ways to navigate a challenging commercial landscape. Developing smart factories through the use of AI, machine learning and increased automation is seen as a critical pathway for boosting performance and reducing the need to pass on increased costs to consumers. They are also important in meeting changing demand, be it for greater customisation, faster delivery, and more sustainable practices. The report goes on to say:

“As manufacturers continue to navigate economic pressures and technological change, their ability to adopt and integrate these technologies will define their success. The future of manufacturing is undoubtedly digital, and the sector’s growing appetite for investment signals its readiness to lead in the new industrial age.”

All of this requires access to reliable real time data and an industry built ERP system that can facilitate innovation. Without the right digital infrastructure, manufacturers will be left behind.

Spanning more than 40 years, NexSys has an impressive track record in helping manufacturers raise their game through the power of SYSPRO ERP. We see for ourselves how businesses can use digital transformation to confront the challenges and maximise the opportunities ahead.

Much of that involves leveraging new technologies to stay ahead of the competition. As an ERP with embedded AI capabilities, SYSPRO is empowering manufacturers to use technology to do anything from automating repetitive tasks and identify patterns in customer behaviour to optimising inventory management. We also recently completed a digitisation pilot project to integrate machine data directly into our Manufacturing Operations Management system.

Despite pressures on the bottom line, the Make UK survey found that 63% of companies think the opportunities of the coming year outweigh the risks. UK manufacturers are after all expert problem solvers and enjoy global respect for their ingenuity. Whether new to ERP or upgrading existing systems, savvy businesses are working hard at improving their digital credentials. Talk to NexSys today about how we can support you on your journey.