Comment: How AI can future-proof UK manufacturing

The UK manufacturing industry is facing a multifaceted and stubborn workforce problem. With a rise in layoffs in anticipation of a national insurance hike, businesses are struggling to ensure seamless continuity of operations. The rate of dismissals recently accelerated to a six-month peak, hitting its highest since mid-2020, as weak demand, mounting cost pressures, and global trade tensions further aggravated the trend. However, exacerbating these immediate worries is a more fundamental one: ensuring that workers of the future possess the skills needed to match the needs of modern manufacturing.

The skills gap: A deepening problem

Manufacturers are struggling to attract new young talent. According to recent surveys, 75 per cent of manufacturers lack skilled workers. Often, candidates lack familiarity with the legacy systems still widely used in factories. This mismatch has resulted in a progressively more strained workforce, especially as businesses are required to meet higher output demands with fewer employees. Here, AI-driven solutions can be a game-changer on several levels: they can help manufacturers by automating routine tasks, enhance worker productivity, enable less experienced workers to operate complex machinery with AI-driven guidance, and draw new recruits to the industry with the promise of training them on new technologies.

AI can help manufacturers do more with less

A top priority for manufacturers is reducing costs while maintaining peak production efficiency. In today’s landscape, investing in purpose-built AI-driven solutions is crucial for businesses to achieve this balance. By ensuring optimal production conditions, businesses can help their workers meet production targets and stay competitive in an increasingly volatile market.

AI-driven solutions enable manufacturers to predict breakdowns before they occur, leading to minimising downtime and allowing for smarter allocation of human resources. Workers have to spend less time now responding to issues and more time on higher-value activities that need their skills. 

The role of workers is evolving – from one of repetitive manual labour to one of working with data, decision-making, and problem-solving. By investing in AI-based solutions, manufacturers not only increase productivity but also make the industry more appealing to a new generation of workers. These new technologies can transform manufacturing into a more dynamic and appealing career choice for young talent who are keen to work with the latest technologies.

The need for a strategic upskilling plan

As the manufacturing sector embraces AI, it is equally crucial for businesses to invest in upskilling the existing workforce. Training employees to work alongside AI technologies is critical to facilitating a smooth transition to Industry 4.0 and beyond. Manufacturers need to create learning and upskilling environments that foster digital literacy, allowing employees to understand and harness the full potential of new tools. Companies that can offer opportunities for continuous learning and career advancement will have a massive advantage in the years to come.

Looking to the future

Given the ongoing difficulties faced by manufacturers due to economic pressures, workforce shortages, and heightened global competitiveness, artificial intelligence offers a future-proof solution moving forward. It will not only help companies optimise their operations and increase productivity among their workers, but gradually lower the burden of rising costs. By embracing AI-based technologies, businesses will become more resilient and will be able to bridge the skills gap that threatens to slow down advances.

The integration of AI-driven solutions paves the way for a new era in manufacturing in a world where efficiency and accuracy are essential to stay competitive. When treated as a tool (not a quick fix) and applied to specific problems, purpose-built AI has proven to be a transformative force that is influencing the industry's future by addressing both short-term challenges and long-term goals. 

Saar Yoskovitz, CEO and Co-founder of Augury