Author: Will Blackshaw

Categories
InterAct Blog

Breaking down the barriers to deep tech adoption will be critical to improving supply chain resilience in the UK

Factors such as climate change, the COVID-19 pandemic and ongoing global regulatory hurdles have all exposed the fragility of global supply chains. It is now more essential than ever that continued collaboration, and the adoption of digital technologies are encouraged to help build more sustainable, efficient and resilient supply chains that remain strong in the face of external challenges. Doing so will be critical to improving supply chain resilience in the UK, but the barriers to adoption must be broken down first.

Addressing the SME gap

Research from the Made Smarter Innovation | Digital Supply Chain Hub reveals organisations’ top priorities and interests when it comes to digitalising their supply chains, and the barriers preventing them from doing so. What’s clear is that interest in adopting digital supply chain technologies continues to grow in parity with the changing commercial climate, but that barriers to adoption amongst SMEs must be addressed as a priority.

A total of 502 large UK manufacturers and 502 UK SME manufacturers were surveyed as part of this research. The findings show that SME manufacturers are less likely to prioritise adopting digital supply chain technologies than large businesses. Adopting new digital supply chain technologies is a top three priority for large manufacturers along with improving market reputation and reducing costs. The discrepancy between SMEs and large businesses is particularly important, given the economic value of SMEs and the role they play in broader sectoral growth and development.

In fact, the research further found that adopting new digital supply chain technologies is less likely to be cited as a top business priority for SMEs than reducing costs, increasing brand awareness, improving market reputation, and enhancing customer satisfaction. Despite the lack of prioritisation, the research did find growing interest in advanced digital technologies amongst SMEs, promising a new era of supply chain innovation amongst SME leaders.

Recognising the growing interest in digital supply chain technologies

While falling behind their larger counterparts, the tide may well be turning for SMEs, with a growing number looking to improve their supply chains, with digital technologies and innovation holding the key. The SMEs surveyed are slightly less likely to be prioritising supply chain digital transformation, with 14% saying they don’t currently have any supply chain top priorities. That said however, 44% of these businesses are looking to enhance supply chain efficiency and automation, while a third are prioritising building resilience against disruptions, developing a more sustainable supply chain, and improving visibility and traceability.

While it may appear that SMEs fall behind their larger counterparts when it comes to the adoption of digital supply chain technologies, it is clear that innovation will play a critical role in helping these businesses to achieve their business goals in the long-term, despite the barriers to adoption.

Understanding the barriers to adoption

Above all, businesses are looking to enhance efficiency and automation by digitalising their supply chains, but the barriers to adoption pose a pressing challenge that may inhibit economic growth. While enhancing efficiency and automation, building resilience against disruptions, and developing a more sustainable supply chain are most likely to be cited by large manufacturers as top priorities, the barriers to achieving these commercial objectives vary.

The research shows that businesses of all sizes are facing similar challenges when it comes to adopting digital supply chain technologies. Respondents in both large businesses and SMEs are most likely to say that the most significant barriers hindering digital transformation in their organisation are existing processes, resources and work culture. In light of these barriers to adoption, initiatives and programmes are available to businesses to help them to accelerate the practical application of deep tech solutions and improve UK supply chain resilience.

The value of the Digital Supply Chain Hub and UK SCALE Centre

These barriers to adoption are why initiatives like the Digital Supply Chain Hub and the UK SCALE Centre are vital interventions within often traditionally operated organisations and sectors.

The Digital Supply Chain Hub delivered by Digital Catapult, facilitates the necessary connections, collaboration and knowledge sharing between industry and technology solution providers to improve UK industrial supply chain resilience through the application of deep tech solutions. So far, the programme has 37 funded projects with industry, technology and academic partners, and 255 industry engagements across all manufacturing sectors, demonstrating the value of the programme in supporting both SMEs and larger businesses.

We have been keen to work with the UK SCALE Centre since it’s inception in June 2024 as a way to further develop the future supply chain ecosystem and cross-regional partnerships. I encourage UK industry, academia and supply chain professionals to join and collaborate with the Digital Supply Chain Hub and UK SCALE Centre to further this vital mission across the UK supply chain ecosystem, as we seek to build a more productive, resilient and sustainable future.

This article was published by Loughborough University, read the original version here.

About the author

Tim Lawrence is the Director of the Digital Supply Chain Hub, Digital Catapult in this article, Tim outlines the importance of breaking down technological barriers to improve supply chain resilience in the UK.

Categories
InterAct Blog

Charging Forward: Electric vehicles and what we can learn about the role of Global Value Chains in sustainable manufacturing

Professor Jun Du, Reader Luciano Battista and Dr. Oleksandr Shepotylo (Aston University)

Faced with the challenge of climate change, and the growing need for sustainable business practices, it can often be hard to know where to start. In this guide, InterAct researchers examine the critical role of global value chains for the future of UK manufacturing, through the case study of the electric vehicle sector.

The UK automotive industry stands at a crossroads, facing a rapidly evolving landscape driven by the global electric vehicle (EV) revolution. While EVs offer a pathway to a greener and more sustainable future, the challenges of global value chain (GVC) dependencies, rising material costs, and competitive industrial policies present formidable hurdles. InterAct research has delved into these dynamics and outlines strategies for positioning the UK as a leader in sustainability-oriented manufacturing.

Industry in transition

Recent developments underscore the urgency of action. In November 2024, Stellantis announced the closure of its Vauxhall plant in Luton, resulting in 1,100 job losses. This follows Ford’s decision to cut 800 UK-based positions and Nissan’s global reduction of 9,000 jobs, with major potential implications for its UK operations.

These challenges reveal a broader issue: Europe’s historical dominance in the automotive sector is under strain, and the UK must adapt to remain competitive amidst shifting supply chains and mounting global competition. Nor is this unique to the automotive sector, with many organisations and governments in developing economies seeking technology transfer and more equal partnerships as a requirement for access to markets or local production. Explored in our global research missions, the rapid pace of advancement in manufacturing across countries like Singapore, India and Malaysia, highlights the need for the UK to evolve to compete.

The changing EV landscape

The transition from internal combustion engine (ICE) vehicles to EVs, driven by technological advancements, environmental awareness, and significant policy support, is reshaping not only the automotive industry but also the intricate web of GVCs that underpin EV production.

Since 2010, the cost of lithium-ion battery packs has plummeted by 89%, making EVs increasingly competitive with ICE vehicles. EVs now account for a substantial share of global passenger car exports, growing from 4.3% in 2017 to 27.6% in September 2024. This growth has been bolstered by government incentives, such as tax credits and investments in charging infrastructure, and by tightening emission standards.

Germany and China lead the EV sales in export value and quantity respectively. UK-made EVs, while primarily destined for EU markets (accounting for 68% of exports), face pressure, despite being delayed, to comply with rules of origin (RoO) requirements under the EU-UK Trade and Cooperation Agreement (TCA). These rules necessitate higher regional content in EVs and batteries, complicating the supply chain landscape.

With the challenge of where to locate manufacturing, new opportunities are arising through the reshoring or ‘right-shoring’ of production, with localised manufacturing offering improved resilience against global supply chain shocks such as pandemics, conflicts or logistical disruption. Locating manufacturing closer to the consumer base also offers the potential to significantly reduce the carbon footprint of supply chains due to significantly shorter transport links.

Three key trends shaping the future
  1. EV adoption is growing, but steady policy is crucial

In September, electric vehicles (EVs) accounted for 27.6% of car sales across 15 major markets, marking a 7.6 percentage point increase year-on-year. The UK ranks fifth globally in EV adoption, underscoring its potential as a leader in this transition. Electrification is the future, but progress hinges on a stable, predictable policy environment that encourages investment and innovation. It is therefore essential that manufacturers make their voice heard, with collective messaging to government and policymakers that can cut through the noise, encouraging a clearly articulated vision and strategy.

  1. Europe is catching up in battery production

While China continues to dominate the lithium-ion battery market, European nations such as Poland, Hungary, and the Czech Republic are emerging as key exporters of EV batteries. Meanwhile, the Inflation Reduction Act in the US has spurred the growth of US electric vehicle innovation and production. In the face of such major competition, the UK should seriously consider aligning closely with EU supply chains to potentially enhance resilience and competitiveness, ensuring the automotive sector remains integrated into global markets. This consideration is especially relevant in light of recent EU legislation surrounding traceability and digital product passports, explored in an InterAct funded research project.

  1. Supply chains will determine future winners

Success in the automotive industry increasingly relies on building efficient and adaptable supply chains, not just manufacturing the best vehicles. This requires collaboration, investment, and strategic vision—elements that are difficult to achieve without systemic support. InterAct’s ‘Scenarios 2040’ work from researchers at Loughborough University has highlighted the essential importance of taking a full ‘ecosystem’ approach to the future of the sector, with manufacturers working with suppliers across their supply chain to determine the most viable and beneficial future for everyone.

A moment for strategic decision-making

The UK manufacturing sector is at a pivotal moment. Sustaining its position in this high-stakes global competition will require visionary leadership, robust policy support, and alignment with broader industrial strategies. The alternative—neglect or fragmented efforts— is likely to result in a gradual decline of one of the UK’s historically significant sectors.

If the UK Industrial Strategy is to back industries such as automotive manufacturing with bold action instead of pivoting decisively towards other emerging opportunities, then policymakers and manufacturers need to explore and adopt strategic recommendations. In the case of the automotive industry shift to electric vehicles, these are:

  1. Enhance domestic capabilities
  • Invest in local battery production facilities and recycling initiatives to reduce dependency on imports and align with RoO requirements.
  • Promote innovation in battery technology to improve efficiency and lower costs.
  1. Optimize trade policy
  • Negotiate flexible trade agreements that account for the complexities of GVCs.
  • Strengthen partnerships within the EU to ensure seamless access to key markets.
  1. Strengthen supply chain resilience
  • Diversify sources for critical materials to mitigate geopolitical and market risks.
  • Establish regional partnerships to secure stable supply chains for EV production.
Charting a Path Forward

The success or failure of the UK manufacturing sector over the next few decades hinges on its ability to adapt to the changing global landscape. By addressing critical dependencies and fostering innovation, the sector can leverage the opportunities presented by the green technology revolution. With strategic investments and policy alignment, the UK can solidify its position and push towards a bright manufacturing future.

Please complete the captcha to download the file.

Download “Report - Electric Vehicles and Global Value Chains in sustainable manufacturing” The-role-of-GVCs-in-sustainable-supply-chains.pdf – Downloaded 10 times – 697.60 KB
Categories
People Productivity Resources

Webinar – Digital transformation, inclusion and innovation in manufacturing

Watch the full recording.

Webinar overview

This session featured Professor Colin Lindsay from InterAct’s ‘Future of Work’ team and Dr Marisa Smith of the ‘Disability Inclusion in Manufacturing’ project, alongside LightGuide’s Managing Director – EMEA, Marc Baines.

The aim of the webinar was to examine the growth of digital solutions in manufacturing and what opportunities they offer organisations willing to embrace change. Colin, Marc and Marisa discussed how new technology have the capacity to empower employees, drive productivity and innovation, and diversify the talent pool to expand workforce inclusivity.

Categories
People Resources

Future scenarios for attracting the next generation of young talent into digital manufacturing careers

Digital transformation has unrivalled potential to improve the lives of citizens throughout the UK and renew the way that the private, public and third sectors can work together.

For UK manufacturing, digital transformation will require future workplaces that can attract and retain young talent from diverse backgrounds and mindsets. However, research by MAKE UK reported that in 2021 only 2% of the average UK manufacturing workforce is currently below 30 years old.

Outdated perceptions overshadow the exciting, tech-driven careers modern manufacturing offers. Attracting the best young talent starts with changing those views.

InterAct’s future-focused research provides free, human-centric insights to help you understand and attract tomorrow’s workforce.

Get started today with our workforce scenarios guide – designed to help you shape the future of talent.

This research was conducted by Dr Karl Warner (University of Glasgow), Dr Nicola Bailey (Kings College London), Dr Anna Chatzimichali (University of Bath), Mr Malek El-Qallali, (University of Bath), Dr Imtiaz Khan (Cardiff Metropolitan University), Dr Anastasia Kulichyova, (Queens University Belfast). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

For further discussions or to propose potential applications/collaborations, please contact Karl Warner.

Please complete the captcha to download the file.

Download “Report - Future scenarios for attracting the next generation of manufacturing talent” Future-scenarios-for-attracting-new-manufacturing-talent-2.pdf – Downloaded 20 times – 1.04 MB
Categories
News

InterAct partners with LightGuide to explore digital transformation, inclusion and innovation in manufacturing

On Wednesday 4th December, InterAct joined forces with LightGuide, Inc. to host a webinar focused on digital transformation, inclusion and innovation in manufacturing.

This session featured Professor Colin Lindsay from InterAct’s ‘Future of Work’ team and Dr Marisa Smith of the ‘Disability Inclusion in Manufacturing’ project, alongside LightGuide’s Managing Director – EMEA, Marc Baines.

The aim of the webinar was to examine the growth of digital solutions in manufacturing and what opportunities they offer organisations willing to embrace change. Colin, Marc and Marisa discussed how new technology have the capacity to empower employees, drive productivity and innovation, and diversify the talent pool to expand workforce inclusivity.

Discussing the event, Professor Lindsay said: “It’s always fantastic to have the opportunity to take part in these kind of sessions in partnership with industrial digital technology providers. InterAct’s mission has always been to bridge the gap between academia, manufacturing, and digital technology providers, building a network and breaking down barriers to get everyone speaking the same language. Webinars like this give us exactly the right platform to build those collaborative relationships and share insights from a variety of unique perspectives.”

The webinar also explored examples of innovative practice shared by LightGuide, a leading projected AR work instruction software provider offering inclusive workplace solutions. These solutions transform manual processes by projecting digital step-by-step AR work instructions onto an employee’s work surface, standardizing and error proofing the work. Coupled with 3D sensors and vision cameras, the system prevents and detects errors in real-time while capturing data and insights on your operator’s performance and quality.

Watch the full webinar recording on YouTube.
Categories
News

Digital Catapult offers new collaborations through Digital Supply Chain Hub

Travel Mania / Adobe Stock

Transform your supply chain: Join the Digital Supply Chain Hub

Building on the success of the Made Smarter Innovation programme, the new Digital Supply Chain Hub platform aims to advance strategic collaboration between manufacturers and digital solution providers. The platform will meet industry demand to accelerate the digitalisation of supply chain operations, driving resilience and sustainability through the application of deep tech solutions.

The platform is designed to increase the adoption of digital solutions by UK manufacturers through facilitating connections and knowledge sharing with digital solution providers and academia. The hub offers tailored matching capabilities to connect businesses with the right partners to help address specific supply chain challenges. Members can:

  • Connect with businesses and supply chain professionals
  • Assess their organisation’s readiness to adopt digital technologies and supply chain’s resilience
  • Upskill with bespoke courses tailored to digital supply chain challenges.
  • Identify and connect with the right partners through the UK supply chain directory
  • Explore case studies of real-world deep tech adoption

Members will also be able to engage in dynamic discussions with industry professionals through “Circles,” the interactive forums focused on critical supply chain topics like resilience, sustainability, and digital adoption.

The hub is open to businesses of all sizes and can help tackle problems often encountered during the search for a suitable supply chain partner.

Start transforming your supply chain today

About the Made Smarter Innovation | Digital Supply Chain Hub

The Made Smarter Innovation | Digital Supply Chain Hub is a digital innovation programme that empowers individuals and organisations to work together to make supply chains smarter. Developed by Digital Catapult and funded by the Made Smarter Innovation challenge, the programme is designed to transform UK manufacturing through digitally empowered supply chains that are more efficient, resilient and sustainable.

The Digital Supply Chain Hub is helping businesses realise the relevance and critical value of digital supply chain technology by improving the flow of data through supply chains and the surrounding ecosystems. The application of digital tools and deep tech solutions creates opportunities to connect systems and value chains, creating a robust data system which can be leveraged to meet the supply chain challenges of today and tomorrow.

Categories
Productivity Resources Sustainability

Beyond Ownership: Business models for sustainable, smart appliances

dusanpetkovic1 / Adobe Stock
Watch a short video explaining the potential of shared ownership business models in the manufacturing sector.

Research overview

What factors the drive consumer adoption of digitally enabled products?

This project, from InterAct funded researchers, has investigated the assumption that a lack of consumer demand lies behind manufacturers’ underinvestment in Industrial Digital Technology. It focused on domestic washing machines as a widespread product that could be ripe for innovation, and which is under pressure to improve its environmental performance.

The findings suggest that consumer resistance to digital features stems from a lack of clear perceived benefits. While manufacturers focus on promoting the technological features of their products as a competitive advantage, customers value outcomes and experience offered. Moreover, customers expressed a dislike for refurbished washing machines and scepticism about alternative revenue models as potentially exploitative. Demonstrating value for money and cultivating trust are major challenges.

For manufacturers, the key recommendation is to place the customer’s experience and expected outcomes (e.g. peace of mind and clean clothes on demand) at the heart of their innovation, rather than emphasise product features.

Technology should be harnessed to support delivery of such outcomes and may be enabled through business model innovation. For example, assured maintenance leading to peace of mind can be delivered through a combination of digital technology (condition monitoring, predictive analytics etc) and business model innovation (shared ownership, access-based service etc).

You can find out more about the project, it’s findings and the team’s recommendations in the full report below.

This research was conducted by Ahmad Beltagui (Aston Business School), Ana Isabel Canhoto, Daniela Castillo, Amireza Alizamani (University of Sussex – Business School), Ramin Behbehani (Brunel Business School) Niraj Kumar (Essex Business School), Maren Schnieder (Anglia Ruskin University). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

For further discussions or to propose potential applications/collaborations, please contact Ana Canhoto or Ahmad Beltagui.

Please complete the captcha to download the file.

Download “Beyond Ownership: Business models for sustainable, smart appliances” Beyond-Ownership-Report.pdf – Downloaded 13 times – 1.22 MB
Categories
Productivity Resources

Webinar – Unlocking the UK’s regional manufacturing productivity

Watch the full recording.

Webinar overview

This webinar, led by InterAct researchers in partnership with The Productivity Institute’s ‘Midlands Productivity Forum’, offers an analysis of the comparative productivity of the manufacturing sector across different UK regions, specifically the East Midlands, West Midlands, and Yorkshire. Drawing on data from the Office for National Statistics (ONS), the manufacturing sector has been identified as the largest contributor to output growth per hour, with a rate of 0.7 compared to 0.1 for the total UK industries, underscoring its critical role in driving regional economic performance.

Expert researchers from InterAct’s ‘Future of the Economy’ team will examine findings of a recent report exploring key factors affecting regional productivity. You’ll hear more about the impact of collaborative R&D grants that foster technological advancements and innovation, as well as labour market dynamics that ensure the availability of skilled and adaptable workers. Our team will then highlight how the innovation ecosystems of these regions contribute to building resilience in the manufacturing sector.

The insights derived from this analysis are intended to support stakeholders—including regional policymakers and industry leaders—in making informed decisions to enhance regional economic growth. Join us on November 4th to find out more, as we work to promote a more productive, resilient, and sustainable manufacturing sector across the UK, ensuring long-term economic growth.

Please complete the captcha to download the file.

Download “Productivity in The Midlands - Slides” InterAct-TPI-Webinar-Slides.pdf – Downloaded 11 times – 741.57 KB
Categories
News

InterAct Storytelling Fellow wins  Science and Research Award from International Digital Storytelling Festival

VIK / AdobeStock

From 27 – 29 September 2024, leaders from the InterAct Storytelling Fellowship programme joined fellow experts at the first International Digital Storytelling Festival in Zakynthos, Greece.

This event brought together practitioners of digital storytelling from across the globe to share and screen visual stories from a wide range of academic disciplines. The festival saw over 60 selected for screening over three days and six categories including:

  • Culture
  • Education
  • Environment
  • Health
  • Science and Research
  • Society

InterAct submitted several stories from across the Storytelling Fellowship programme for consideration, from which fellow Susan Lattanzio’s story ‘Digital Dinosaurs’ was selected as winner of the ‘Science and Research Award’.

Dr Susan Lattanzio is the Research and Industry Engagement Manager for the Made Smarter Innovation: Centre for People-Led Digitalisation. The Centre specifically focuses on the role of people and culture, and how these both influence and are influenced by the adoption of digital technologies.

Discussing the success of this story Professor Michael Wilson, Head of the Loughborough University Storytelling Academy, said: “This has been a unique adventure in using storytelling, particularly digital storytelling, in collaboration with the manufacturing industry to tell impactful stories relating to the onset of technological development. It’s not something that I, or others at the festival had encountered before, and I think it lends credence to the idea that storytelling is a valuable tool to apply across contexts to generate meaningful insights.”

Professor Michael Wilson, Pip Hardy and Tony Sumner collect the ‘Science and Research Award’ on behalf of Susan Lattanzio.

Speaking afterwards, Susan added: “I’m delighted to have won this award. I want to thank InterAct for providing funding for this programme and the Storytelling Academy at Loughborough University for running such great teaching sessions. Their support and guidance inspired so much creativity and a range of different approaches among our cohort of fellows.

“I think sometimes it can be too easy to focus just on KPIs when considering manufacturing challenges and miss the bigger picture. This was a very exciting opportunity to take a new approach to communicating that we wouldn’t normally use in engineering and offer up insights in a compelling, narrative format.”

“The concept of ‘Digital Dinosaurs’ came from my personal experience, but it was a subject that I found almost everyone I spoke to could relate to with someone in their life. I think it aligns really well with our aims at the Centre for People-Led Digitalisation, where we’re committed to putting considerations of the impact of change and new technology on people at the heart of our research.”

Categories
Productivity Resilience Resources Sustainability

Remanufacturing in the aerospace industry: Perceptions and practices of circular economy business models in aerospace small to medium-sized enterprises

Research overview

Global aviation currently contributes approximately 2% of greenhouse gas emissions; the projected growth in global aviation will create annual CO2 emissions of 1.8 billion tons by 2050. Consequently, the sector has made a commitment to achieve net-zero carbon emissions by 2050.

Government policy strategies such as the Aerospace Sector Deal, Jet Zero and Destination Zero focus on sustainable aviation fuel and aircraft efficiency for the transition to zero emission flight. Although, attention to the whole aircraft life cycle including design, manufacture and recovery has been relatively lacking.

This project sought to support SMEs in the aerospace manufacturing industry by exploring remanufacturing business models, a form of Circular Economy Business Model (CEBM), to help them move towards a sustainable future.

Embracing the ‘Circular Economy’ can minimise the consumption of finite resources as well as the production of waste and emissions. CEBMs, which are often represented as R-imperatives or R-models, can not only contribute to sustainability but also to business model innovation by extending the value proposition to value recreation, redelivery, and recapture.

This project conducted case studies of five SMEs in the UK aerospace industry to explore:

  1. The extent of their current practice of, and plans for, remanufacturing
  2. Barriers they face in their current or potential remanufacturing business models
  3. Drivers for them to engage with a more sustainable business model

Find out more and download the full report below.

This research was conducted by Dr Rachael Lamb (University of Bristol), Dr Eun Sun Goodwin (University of Wolverhampton), Dr Michael Rogerson (University of Sussex) and Dr Alisha Tuladhar (University of Surrey). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

Please complete the captcha to download the file.

Download “Remanufacturing in the Aerospace Industry” Remanufacturing-in-the-Aerospace-Industry.pdf – Downloaded 12 times – 690.45 KB