Dealing with Brexit uncertainty through investment
Contrary to public opinion, the UK is one of the leading nations when it comes to manufacturing. We currently rank ninth in the world, and produce £3.82 billion to our economy from our manufacturing businesses (Office for National Statistics).
However, the gridlock of Brexit has dragged the UK economy close to stalling point. Growing numbers of manufacturing companies are delaying their spending plans, or cancelling their investment all together due to the uncertainty in the current marketplace, and not having a clear view on how Brexit could affect their supply chain.
Manufacturing companies are now deciding to go to Europe themselves rather than exporting, putting off investment all together and, as Make UK Chief Executive Stephen Phipson describes it, ‘building inventory like crazy’.
The current uncertainty in the marketplace is forcing manufacturers to hoard more inventory, meaning that their stock holding capabilities need to improve rapidly to deal with the increased levels. One way of achieving this, is to digitalise their business, and introduce a sophisticated and sustainable business software solution.
The fourth industrial revolution is currently taking place, with digitalisation touching every aspect of life, specifically businesses. The introduction of next generation business software is allowing businesses to thrive in this time of uncertainty, automating their stock holding processes and giving them a full and clear overview of their whole business.
It’s critical that UK manufacturing businesses have next-generation digital infrastructure in place. The UK is taking steps to cement its position as a world leader in future technologies of full fibre and 5G through the £740m of funding from the National productivity investment fund that the chancellor announced last year.
The top companies are digitalising well, and there are numerous examples of medium-sized companies that are starting to do it quite well in implementing these techniques.
Mr Phipson identifies that the challenge is the long tail – the 90% of businesses that are SME’s – and ‘really getting them to realise the value of investment’ and what they can achieve through digitalisation.
To understand how digitalising your manufacturing processes can help your business, contact Azzure IT today. We have significant experience helping companies like Make UK, S+B and process engineering companies like Snowdonia Cheese.
