UK productivity hindered by digital skills deficit – report

A new report by RSM UK and Make UK shows that the use of data analytics improves business efficiency for manufacturers, but a digital skills deficit is hindering adoption of the technology.

58 per cent of UK manufacturers think that digital technologies are increasing the need for high skilled labour
58 per cent of UK manufacturers think that digital technologies are increasing the need for high skilled labour - AdobeStock

The report follows a survey of over 200 business leaders from across the manufacturing sector. It found that 66 per cent of respondents believe that the use of data analytics made an overall positive contribution to business efficiency, with 55 per cent of companies investing up to 10 per cent of their total investments in digital technology.

Manufacturers perceived the main benefits of using data analytics to be more efficient use of resources (56 per cent), improved productivity (49 per cent), and improved labour efficiency (36 per cent).

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

The report also reveals that 38 per cent of manufacturers found the benefits of data analytics have exceeded expectations. 

In a statement, Joel Segal, head of Business Transformation at RSM UK, 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.

“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.”