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People Productivity Resources

The Future of Inclusive Manufacturing through Digitalisation

The manufacturing industry in the UK faces significant challenges in fostering diversity and inclusion, particularly regarding the employment of disabled individuals. While gender and ethnic diversity have been prioritised, disability inclusion remains largely overlooked, despite disabled people making up 23% of the UK’s working-age population. Persistent employment and pay gaps, alongside digital skill disparities, further hinder access to opportunities in manufacturing.

This project examined how digital technologies, inclusive management, and accessible business practices can bridge these gaps. Adopting a socio-technical approach, the project team envisions a future where technological advancements align with workplace inclusivity, supporting disabled employees through innovations such as AI-powered automation, VR training, and assistive robotics.

This report introduces a 2040 scenario, centring on Josie, a disabled manufacturing worker, to illustrate how technology and societal shifts can create an inclusive workforce. Insights from industry stakeholders validated the feasibility of these advancements but also highlighted barriers, including unequal access to digital tools and employer reluctance to accommodate disabled workers.

Key Visions for an Inclusive Future:

  1. Inclusive Society – Equal access to digital skills education and training from an early stage.
  2. Inclusive Technology – Enhanced accessibility to digital tools for individuals and SMEs.
  3. Inclusive Workplace – Overcoming physical and attitudinal barriers through flexible policies and leadership awareness.

Policy Recommendations:

  1. Inclusive Education & Training – Manufacturing skills programs must be tailored for disabled individuals.
  2. Collaboration Between OEMs & SMEs – Industry-wide partnerships to ensure accessible technology adoption.
  3. Supported Employment Initiatives – Proving the value of disabled workers in manufacturing through structured programs.

By aligning technological advancements with inclusive policies and workplace adaptations, the manufacturing industry can unlock the full potential of disabled workers, fostering innovation, productivity, and a more equitable workforce.

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People Productivity Resilience Resources Sustainability

InterAct’s Emergent Theory of Change

Beginning in September 2024, a team of researchers at Loughborough Business School conducted a comprehensive metareview of the research outputs produced by projects funded through InterAct. The review systematically analysed insights from multiple sources, drawing out key lessons for policymakers, businesses, and researchers on how industrial digital technologies (IDTs) are shaping UK manufacturing. Using qualitative coding through NVivo, they identified core themes to provide a cross-cutting analysis of the challenges and opportunities in IDT adoption.

The metareview has generated a range of outputs, including an overarching theory of change, policy briefing and short animation to support manufacturers, technology providers, and policymakers to make informed decisions.

This research was conducted by Dr. Jeannie Holstein, Dr. Kate Broadhurst, Dr. Lei Chen, Dr. Elaine Conway, Dr Elena Georgiadou and Dr. Anna Raffoni (Loughborough Business School). 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].

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Download “InterAct's Emergent Theory of Change - Policy Brief” LOUG-0335-Policy_Brief_A4_Digital.pdf – Downloaded 12 times – 1.39 MB
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People Productivity Resources

Webinar – Digital transformation, inclusion and innovation in manufacturing

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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.

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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.

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People Resources

InterAct Co-director features in Journal of Operations Management’s podcast

Overview

Professor Janet Godsell (Dean of Loughborough Business School and InterAct Co-director) features in the Journal of Operations Management’s podcast on ‘Advancing Engaged Practice-Orientated Research’.

In the episode, Jan discusses advancing engaged practice-orientated research with the panel and the importance of this engagement between academia and industry.

Jan highlights institutional mechanisms to facilitate this engagement, such as industrial collaborator forums and masters/MBA student projects to encourage low risk collaboration between businesses and academics.

Listen to ‘advancing engaged practice-orientated research’ on podbean
Listen to ‘advancing engaged practice-orientated research’ on spotify
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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.

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Productivity Resources

Webinar – Unlocking the UK’s regional manufacturing productivity

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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.

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Download “Productivity in The Midlands - Slides” InterAct-TPI-Webinar-Slides.pdf – Downloaded 12 times – 741.57 KB
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People Resilience Resources

W20 UK: ‘Future of flexible work’ report 2024

Research overview

Workplaces are experiencing rapid transformational change. Flexible working is key to future success, attracting and retaining a talented workforce and a competitive edge, and enabling people with caring responsibilities or other significant commitments to juggle the competing demands of work and their personal lives and well-being. 

The UK government has recently announced plans to give full time workers the right to request a four-day work week from day 1. The W20 UK Future of Flexible Work Report covers the current flexible working landscape, responding to new flexible working legislation, and gives recommendations for government, employers and employees on “dancing the tango with flexible work” to achieve a successful outcome for all with better work-life balance.

Work-life balance and flexible working play a pivotal role in empowering women to fully engage in the workforce while managing care and domestic responsibilities. Women often bear a disproportionate responsibility for caregiving and domestic duties and flexible work options can enable them to navigate their personal and work roles more seamlessly. This report highlights the significance of accommodating diverse needs through flexible working practices, particularly for women juggling multiple responsibilities. 

By highlighting best practices among employers who have embraced flexible work, the report emphasises the importance of creating inclusive workplaces that consider employee well-being as synonymous with productivity. By offering flexibility in work arrangements, organisations can not only attract and retain valuable talent but also foster a culture of equality and support, ultimately contributing to better employee outcomes and greater gender parity in the workforce.

This research was conducted by Ann-Maree Morrison and Barbara Cleary (W20 UK Co-Chairs).

For further discussion or potential collaboration, please contact Ann-Maree Morrison MBE.

W20 UK Future of Flexible Work Report 2024
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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].

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Productivity Resilience Resources

Accelerating Industrial Technology Digital (IDT) adoption in UK manufacturing through Open Innovation

Watch a short explainer video about how manufacturers can use an Open Innovation approach to effectively partner with industrial digital technology experts to future-proof their business.

Research overview

If solutions involving Industrial Digital Technologies (IDTs) that meet the needs of UK manufacturers are readily available, they can be obtained through market-based contracts or licensing agreements. However, some manufacturers may have more complex requirements that necessitate highly customized solutions or even the development of new technologies. In these situations, manufacturers and IDT providers may need to engage in Open Innovation.

Open Innovation (OI) means working with external partners to find solutions to innovation-related problems. It is a distributed innovation process based on purposively managed knowledge flows across organizational boundaries.

InterAct funded researchers offer new Open Innovation insights, allowing manuacturers to use an Open Innovation approach to effectively partner with industrial digital technology experts to future-proof their business.

Both systematic research and anecdotal evidence show that OI has many benefits, such as:

  • Improved time-to-market
  • Access to a wide variety of external knowledge
  • Reduced costs
  • Shared risk

This research was conducted by Dr. Andrei Gurca (Queen’s University Belfast) and Dr. Kate Broadhurst (Loughborough 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 discussion or potential collaboration, please contact Andrei Gurca or Kate Broadhurst.

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