Rapid market changes call for demand-driven collaborations in manufacturing, which trigger supply chain evolution to more distributed supply structures.
This paper explores the system dynamics of the largest European aerospace manufacturer’s supply chain. The authors conceptualise a manufacturing ecosystem by observing the impacts of supplier development, digital platforms, smart contracting, and Industry 4.0 on demand-driven collaborations in time.
The research team offers further contributions to the literature on ecosystem strategy, particularly for regulated industries, by disclosing the role of demand-driven collaborations in supporting the ecosystems’ growth. This paper also provides manufacturing firms with an open-access tool to exemplify their ecosystem development and produce initial training datasets for AI/ML algorithms, supporting further analytics.
This research was conducted by Dr. Nikolai Kazantsev (IfM, University of Cambridge), Oleksii Petrovskyi (National University of Kyiv-Mohyla Academy), Professor Julian M. Müller (Seeburg Castle University, Austria and Erfurt University of Applied Sciences, Germany). 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 potential applications/collaborations, please contact Nikolai Kazantsev.
Watch a short animated explainer about developing business cases for digitalisation
Research overview
The competitiveness of industry in the UK is dependent on the rapidly growing digitalisation of manufacturers. Digitalisation provides the opportunity to drive the efficiency and innovativeness of manufacturers, and forms the basis for creating new business models. Yet, manufacturers are lagging in their investments into digitalisation and risk missing out on capturing the opportunities digitalisation offers. The below report, guide and video outline the specific challenges the manufacturing industry faces when making effective investments into digitalisation and identifies the key questions they should address to overcome them.
This research was conducted by Dr. Andreas Schroeder, Dr. Yang Zhao and Dr. Daniel Andrews (Aston 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 potential applications/collaborations, please contact Andreas Schroeder.
The term ‘ecosystem’ is derived from biology, capturing a system of entities interacting and depending on each other and reacting to outside challenges and requirements. Business ecosystems represent the intense relationships between interlinked multilateral, complementary actors or partners interacting for value creation (Adner, 2017; Hannah and Eisenhardt, 2018).
We define a manufacturing ecosystem as a subclass of business ecosystems where supply chain firms arrange demand-driven collaboration in all directions (e.g., with partners, buyers, and even customers), thus competing with large Tier-1 firms for direct manufacturing orders, gaining these orders, fulfilling them and capturing profits. This changes the topology of a hierarchical supply chain into a distributed manufacturing ecosystem, where Tier-1s do not arrange subcontracting of the awarded orders.
In the conventional supply chains, Small- and medium-sized enterprises (SMEs) represent most suppliers worldwide, accounting for 70% of jobs and generating up to 60% of value added (OECD, 2017). For example, the aerospace supply chain starts with the OEM, which places orders in a ‘Calls for Tenders’ (CfTs), organizes tendering processes (often leading to Tier-1s) and awards orders to the team that best matches the requirements. In this industry, SMEs can potentially provide components and services at multiple supply chain levels, but they often miss the scale, scope, standardization or technologies to play a more active role in tendering (Müller et al., 2018). Also, SMEs have reduced ability to act as suppliers due to powerful Tier-1 companies (Schirrmann & Drat, 2018).
However, what if demand-driven collaborations between SMEs are supported?
We simulate the application of Industry 4.0, Digital platforms, Smart contracts, and Supplier development programs (Kazantsev et al., 2022) and explore the growth of the manufacturing ecosystem from a conventional supply chain. We used system dynamics to simulate these changes and provide insights for manufacturing firms and policymakers about the desired level of support (Sterman, 2000; Akkermans and Wasserhove, 2018).
An interactive dashboard has been developed that allows the testing of ecosystem development:
1. Supplier development and digital platforms make marketplaces more transparent so that SMEs can see more calls for tenders
Supplier development programmes and digital platforms are needed to help SMEs identify more calls for tenders and potential partners for collaboration.
2. The collaboration experience and smart contracts reduce uncertainty levels and enable SMEs to submit more collaborative tenders
Participating in tendering would also enable SMEs to learn how to fulfil orders; therefore, allowing some quotas is helpful. The more firms collaborate on tenders, the lower the level of uncertainty in the market. New technologies, such as smart contracting, indirectly increase the number of submitted tenders and further support the development of a trustworthy business environment.
3. Technological support for contracting and coordination reduces the order execution queue and supports the growth of a manufacturing ecosystem
Insufficient contracting and coordination reduces order fulfilment efficiency and calls for digitalization (Kazantsev et al., 2023). Adopting smart contracting and Industry 4.0 increases the ability of SME collaboration to execute the awarded orders in time. Specifically, if we double investments into smart contracting and Industry 4.0 every year, the number of delayed orders grows until the 5th year but then starts falling. In the 6th year, 48 calls for tenders will be available (with a 15 % quota), seven orders out of which will be fulfilled the same year, and six orders from the previous year’s queue. In this case, the order execution rate reaches a plateau – executing all awarded orders. Year 5 is a breakeven point when order execution rate, delayed, and executed orders intersect.
Study implications
Demand-driven collaborations play a critical role in unfolding manufacturing ecosystems. In the early stages of such transitions, investments in collaboration enablers are critical to support ecosystem growth. Thus, we recommend:
investing in supplier development and digital platforms as early as possible
enabling quotas for SMEs in tendering
increasing digitalization of contracting and coordination to support the efficiency of demand-driven collaborations
Adner, R. (2017). Ecosystem as Structure. Journal of management, 43(1), 39-58.
Akkermans, H., & Van Wassenhove, L. (2018). A dynamic model of managerial response to grey swan events in supply networks. International Journal of Production Research, 56(1-2), 10-21.
Hannah, D. P., & Eisenhardt, K. M. (2018). How firms navigate cooperation and competition in nascent ecosystems. Strategic management journal, 39(12), 3163-3192.
Kazantsev, N., Petrovskyi, O., & Müller, J. M. (2023). From supply chains towards manufacturing ecosystems: A system dynamics model. Technological Forecasting and Social Change, 197, 122917.
Kazantsev, N. (2022). Supporting SME Collaborations in Low-Volume High-Variability Manufacturing. United Kingdom:The University of Manchester.
Kazantsev, N., Pishchulov, G., Mehandjiev, N., Sampaio, P., & Zolkiewski, J. (2022). Investigating barriers to demand-driven SME collaboration in low-volume high-variability manufacturing. Supply Chain Management: An International Journal, 27(2), 265-282.
Kazantsev N., DeBellis, M., Quboa Q., Sampaio P., Mehandjiev N., & Stalker I. (2023). An ontology-guided approach to process formation and coordination of demand-driven collaborations, International Journal of Production Research, DOI: 10.1080/00207543.2023.2242508
Müller, J. M., Buliga, O., & Voigt, K.-I. (2018). Fortune favors the prepared: How SMEs approach business model innovations in Industry 4.0. Technological Forecasting and Social Change, 132, 2-17.
OECD. (2017). Enhancing the contributions of SMEs in a global and digitalized economy.
Schmidt, M. C., Veile, J. W., Müller, J. M., & Voigt, K. I. (2023). Industry 4.0 implementation in the supply chain: a review on the evolution of buyer-supplier relationships. International Journal of Production Research, 61(17), 6063-6080.Sterman. (2000). Business Dynamics: Systems Thinking and Modeling for a Complex World McGraw Hill.
The manufacturing sector is a vital component of most economies, which leads to many cyberattacks on organisations, whereas disruption in operation may lead to significant economic consequences. Adversaries aim to disrupt the production processes of manufacturing companies, gain financial advantages, and steal intellectual property by getting unauthorised access to sensitive data.
Access to sensitive data helps organisations to enhance the production and management processes. However, majority of the existing data-sharing mechanisms are either susceptible to different cyber-attacks or heavy in terms of computation overhead.
This project worked with manufacturing industry representatives, digital technology providers and cyber-resilience centres across the country to develop ways to manage behavioural change to ensure cybersecurity improvements, whilst using psychological models to plan new ways to adapt to these changes.
Digital cyber security tool
Arising from the results of this research, the team has developed a free to use online cyber security tool which allows you to assess the cyber-security readiness of your organisation to understand what areas require your attention. This valuable tool offers manufacturers the chance to effectively examine their own cyber security preparedness and enable the safe implementation of new digital technology into their workplace.
Conference paper – Local Differential Privacy-Based Data-Sharing Scheme for Smart Utilities
In the team’s conference paper, a privacy-preserving data-sharing scheme for smart utilities is proposed. First, a customer’s privacy adjustment mechanism is proposed to make sure that end-users have control over their privacy, which is required by the latest government regulations, such as the General Data Protection Regulation.
Secondly, a local differential privacy-based mechanism is proposed to ensure privacy of the end-users by hiding real data based on the end-user preferences. The proposed scheme may be applied for different industrial control systems, whereas in this study, it is validated for energy utility use case consisting of smart intelligent devices. The results show that the proposed scheme may guarantee the required level of privacy with an expected relative error in utility.
This work was carried out by Dr. Bruno Bogaz Zarpelao (State University of Londrina, Brazil), Veniamin Boiarkin, Professor Muttukrishnan Rajarajan, Professor Rajkumar Roy and Professor Katy Tapper (City, University of London, United Kingdom). 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 potential applications/collaborations, please contact Muttukrishnan Rajarajan.
Working from home, or telework, has been rising in the past 20 years, but large-scale adoption of this practice was never really embraced by the majority of UK employers. In March 2020, the COVID-19 pandemic ‘flicked a switch’ overnight, and all workers who were able to work remotely were compelled and facilitated to do so, through digital technologies.
Whilst many people who worked from home during the pandemic, many others found themselves with a lack of appropriate workspace, or experienced a sense of social isolation. As the pandemic subdued, patterns of work have evolved into more complex patterns of hybrid working.
The benefits and disadvantages of working remotely remain in this dichotomy of place – home or the office – yet new workspaces, such as coworking spaces (CWSs) offer a third option. Indeed, the growth of coworking spaces has grown significantly across the world since the pandemic, not only in cities, but also in the suburbs, towns and rural villages.
Other countries (across Europe and the USA) have recognised the potential of CWSs, to help deliver economic growth and develop places beyond their core cities. They have begun to develop explicit policies to support remote working from these places. However, there is a noticeable absence of this type of discussion in UK policy and the question is, why? Are they not popular in such areas of the UK, are they different to city-based CWSs, in what ways? What are the implications for the areas they are located in?
Our pilot study of CWSs in a number of provincial areas in England examined what CWSs in these areas look like, what they do, what are their governance structures and the potential they hold for raising entrepreneurship and business growth beyond core-cities. We interviewed owners, managers and users of CWSs; Chambers of Commerce, local councils, local enterprise partnerships. We made observations of a variety of CWSs types, business models and identified the range of their activities they undertook to support their local areas. We listened to how they were faring, their relationships with each other and other local bodies. Our findings are summarised in two reports. Whilst designed to sit as separate briefs, there is complementary in what they cover, and benefit from being read together.
The first report “The rapid rise of rural co-working in England: sharing experiences for mutual learning” is a briefing for industry. It identifies the activities undertaken across a range of CWSs and collates them to provide insights and suggestions to other CWS owners and managers about the best practices we observed, so that these might be considered by those who do not currently adopt them and strengthen the role of their CWS to its local economy further.
The second report “The potential of coworking spaces to stimulate local growth outside of major cities” is a briefing to local and national policymakers. It identifies more specifically, the contribution CWSs can make to various levels of community: the community within the CWS, the local business community around it, and the wider social community in which they reside. It also identifies areas in which the government could offer more support. The potential value CWSs bring to each level of community means they deserve to have greater attention from local and national policymakers as they grapple with how to stimulate local growth and prosperity across the UK.
This research was conducted by Dr. Felicia M Fai, Dr. Mariachiara Barzotto and Professor Phil Tomlinson (University of Bath). 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 potential applications/collaborations, please contact Felicia Fai.
As we embark on the next stage of our industrial evolution, digitalisation will shape the future of our economy, manufacturing ecosystem, and workplace. Digital technologies can enable us to create the future we want and move beyond consumption driven economic growth.
Our challenge is to create a digital manufacturing future that meets our net-zero ambitions, whilst being resilient and productive. Thus, ensuring that everyone has the things that they need, at a price that they can afford, without damaging the environment or society.
To create the digital manufacturing future we want, we first need to know how that can be achieved, we need to explore the possible and work together to realise these goals. In order to combine our expertise from the broadest range of perspectives around this common goal, we need to InterAct.
How did the InterAct conference benefit attendees?
Gaining actionable human insights into the future manufacturing environment.
Networking and building relationships with cross-sector experts interested in creating a positive, forward-thinking vision for UK industry.
Building narrative development skills to enhance the reach of messaging in the digital environment.
The opportunity to take part in a collaborative workshop on the theme ‘How do we create the digital manufacturing futures we want to see, together’.
Engagement with a panel of highly regarded speakers from the world of manufacturing, policy, and academia during an interactive Q&A session.
Speakers
We were delighted to welcome a roster of world-leading speakers, who shared unique insights and perspectives on their areas of expertise in relation to the theme of ‘Creating the digital manufacturing future we want’.
Our speakers were drawn from a wide range of backgrounds across industry, policy, think-tanks, and academia. Together they represent a diverse collection of voices that we want to draw into the wider conversation about what it will take to build a future that delivers for everyone.
Peter is the CEO of the CIPD, the professional body for HR and People Development. Since January 2019, he has been co-chair of The Flexible Working Task Force, a partnership across government departments, business groups, trade unions and charities, to increase the uptake of flexible working. He is also Chair of Engage for Success and the What Works Centre for Wellbeing.
Peter writes and speaks widely on the development of HR, the future of work, and the key issues of leadership, culture and organisation, people and skills. In 2021, his second book ‘The New World of Work’ was published, exploring the many factors shaping work, workplaces, workforces and our working lives, and the principles around which we can build a future that is good for people, for business and for societies.
Prior to joining the CIPD in 2012 Peter was Chair of the Institute of Leadership and Management, an Executive Fellow at London Business School, and held a number of Board level roles. He had a long career in consulting at Accenture working with organisations around the world, and in his last seven years there was Global Managing Director for the firm’s human capital and organisation consulting practice.
Ben Armstrong is the executive director and a research scientist at MIT’s Industrial Performance Center, where he co-leads the Work of the Future initiative. His research and teaching examine how workers, firms, and regions adapt to technological change. His current projects include a working group on generative AI and its impact on work, as well as a book on American manufacturing competitiveness. He received his PhD from MIT and formerly worked at Google Inc.
David is Chief Economist EMEA at JLL, one of the world’s largest commercial real estate services companies. At JLL, David advises the firm’s leadership and its clients on how the economy is evolving and the impact it will have on real estate. Prior to JLL, David spent six years as Chief Economist at Jaguar Land Rover and also led the company’s work to prepare for Brexit. He has previously held other economist positions at Capital Economics, RBS, and the Bank of Sierra Leone.
Professor Vania Sena
Speaker – Future of the Economy
InterAct Network – Future of the Economy: Principal Investigator Chair in Entrepreneurship and Enterprise – University of Sheffield
Professor Sena’s first degree was awarded with laude by the University of Naples, Federico II, Naples, Italy; her postgraduate studies in Economics were carried out at the University of York, UK, where she was awarded both the MSc and the DPhil in Economics.
Her research focuses mainly on productivity growth, both at the micro and macro level with an emphasis on innovation, human capital and intellectual property. Her most recent research looks at the relationship among innovation activities,trade secrets and total factor productivity. She is a member of the Operational Society General Council and Board. She has been a visiting fellow at Harvard University, MA and at Rutgers University, NJ.
Vania is leading the InterAct workstream ‘The Future of the Economy’, which is examining the impact that the uptake of industrial digital technology in manufacturing will have on the wider economy and the implications of of this.
Dr Adrienne Houston is Company Director at Eurovacuum Products Ltd. She is a Mechanical Engineering specialising in high vacuum and low pressure compressor systems and vacuum evaporator for the biogas, chemical and pharmaceutical industries.
To complement her professional work, Adrienne is a keen promoter and champion of women in engineering, diversity and inclusion. In 2019 she was appointed by the Royal Academy of Engineering for the role of Diversity and Inclusion Visiting Professor at the University of Birmingham. She is a board member at the Research, Information and Knowledge committee at the Engineering Professors Council and Honorary Visiting Design Professor at the School of Engineering, University of Leicester.
Professor Jillian MacBryde
Speaker – Future of Work
InterAct Network Co-director Professor of Innovation and Operations Management – University of Strathclyde
Jill MacBryde is Professor of Innovation and Operations Management at Strathclyde University where she is also Director of the Hunter Centre for Entrepreneurship. Jill is Co-Director of the ESRC Made Smarter Network Plus, InterAct network, which aims to bring insights from the social sciences to support the innovation and diffusion of digital technologies that will result in a stronger, more resilient, manufacturing base.
The theme throughout Jill’s work is operations management in changing environments and her current research projects include productivity in manufacturing, the impact of Covid on UK manufacturing, and the future of manufacturing work. Jill also works with policy makers and the public sector. She is currently a member of the Innovate UK/ESRC Innovation Caucus and a member of the Innovate UK Future Flight Advisory Board.
Matt Tootle
Speaker – Future of Digital Manufacturing Ecosystems
Matt is an energetic and passionate leader who joined Aerogility with over 16 years’ experience in defence aerospace, primarily within support engineering and manufacturing. Matt’s specialisms include capturing and shaping complex customer requirements, designing and developing deliverable solutions and translating technical problems to non-technical individuals. Matt has extensive experience working with international customers and colleagues to deliver value to their operations. Matt’s current role sees him working across a variety of sectors to deliver innovative, model-based AI solutions to enable customers to better operate, sustain and optimise platforms, services and infrastructure.
Sue Williams
Speaker – Future of Digital Manufacturing Ecosystems
Sue Williams is a strategic and focused Supply Chain Director with over 25 years’ experience in multiple industries including automotive, aerospace, defence and FMEG as well as aftermarket and aftercare support. Sue’s specialisms include supply chain design and modelling, inventory planning, demand management, S&OP and supply planning. Sue has worked with organisations such as Jaguar Land Rover, Dyson, GKN and Meggitt among others, to deliver sustainable, high value change to their supply chains. Sue was also the Head of Supply Chain for the Vaccine Taskforce, responsible for supply chain risk and resilience and the inbound modelling and planning for the vaccine supply.
Martin Bach
Speaker – Future of Digital Manufacturing Ecosystems
Martin Bach’s background is in process engineering and manufacturing management. He has extensive business management experience in the UK, Europe and the US, running a wide range of businesses in the automotive and industrial sectors. Most recently he was Managing Director of Cooksongold, the UK’s leading supplier of jewellery making materials and products.
Professor Janet Godsell
Speaker – Future of Digital Manufacturing Ecosystems
Jan Godsell is Dean of Loughborough Business School and Professor of Operations and Supply Chain Strategy at Loughborough University. Her work focuses on the pursuit of more responsible consumption and production through the alignment of product, marketing, and supply chain strategy with consumer needs. Jan’s work focuses on the design of end-to-end supply chains to enable, responsibility, sustainability, resilience and productivity.
Jan is the workstream lead for ‘The Future of Digital Manufacturing Ecosystems’. This will examine how to develop more sustainable manufacturing business models, supply chains, and the role of innovative digital technologies (IDTs) in facilitating this shift.
Ved is passionate about the impact of technology on business, culture, and society. He enjoys speaking and writing about technology and the future. He writes a weekly innovation newsletter, and is a regular speaker at industry forums. He has been a guest lecturer at the HSE Ireland Masters in Digital Healthcare Programme in Dublin for the past 3 years, and a regular speaker on AI and future systems.
Ved works as the Head of Business Innovation for Tata Consultancy Services UK. His primary focus is to help drive future thinking conversations with clients in solving tomorrow’s problems. He has been working with and advising senior clients across retail, travel, education, healthcare, financial services, public sector, and other businesses. Ved runs an innovation team in London and is leading the design and set up of Pace Port London. Currently his work spans areas such as reinventing social care for the elderly, connected homes and environments, and urban mobility, Generative AI, and more. Over the past 20+ years, Ved has been working on emerging technologies, and their adoption into organisations. An avid writer and regular speaker, Ved’s book “Doing Digital” was released in January 2023, and he writes a regular innovation newsletter.
Fhaheen Khan is a Senior Economist at Make UK, the manufactures organisation. His role primarily focusses on monitoring and evaluating the economic performance of manufacturers, which is published in a quarterly outlook report. In addition, Fhaheen’s role covers a myriad of topics relevant to manufacturing to advise Government bodies to develop policy with a focus on tax, investment and the business environment and is a regular commentator on public statistics.
Ben is the Deputy Director of the Innovate UK-led £300 million Made Smarter Innovation Challenge; a collaboration between UK government and industry designed to support the development and novel application of industrial digital technologies.
Prior to this, Ben held positions at HiETA Technologies, Airbus Group, University of Bath and Cobham. He is also founder of Added Lightness, a technology strategy consulting business, and Atherton Bikes, which brings together multiple-world champion and world cup winning athletes with the latest composite and additive manufacturing technologies.
Ben holds a degree in Materials Science and Engineering and an MBA from the University of Bath, a PhD in Materials Science and Metallurgy from the University of Cambridge and is a Chartered Engineer.
Disruption, digital innovation, new business models… the world of manufacturing is changing rapidly, perhaps faster than ever before. To adapt and survive, businesses must anticipate changes, identify opportunities and make informed decisions.
So, how can you be ready for the changes that lie ahead? How can you pivot to be equally productive and sustainable, delivering progress with purpose?
The InterAct Future of Digital Manufacturing Ecosystems research team has put together a vital report that brings you the information you need, at your fingertips, outlining potential future scenarios and the associated opportunities for the manufacturing world.
Future of Digital Marketing Ecosystems – 2040 Scenarios
These scenarios map out four potential alternatives for the digital manufacturers of tomorrow, including:
Productivity Powerhouse
Flexibility as Standard
Sustainability Champion
Happy and Sustainable Workforce
Download the report to find out more about how the most useful measure of sustainable progress is total factor productivity, which accounts for inputs beyond labour – such as materials, energy and administrative time – to compare them against total outputs. You will also learn how these inputs can be measured against one another, and how businesses can begin working towards achieving them.
As the report shows, by considering the human factors behind digitalisation today, you’ll be much better placed to build true resilience into your business tomorrow.
This research was conducted by Dr. Wanrong Zhang, Professor Janet Godsell and Dr. Kamran Chatha (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 discussions or potential applications/collaborations, please contact Jan Godsell.
With the enactment of the new EU Battery Regulations, organisations are required to embrace Battery Passports and Smart Labelling, enabling transparency and sustainability in battery production and consumption. Recent research from InterAct funded researchers, however, highlights critical gaps in awareness, information availability, and operational readiness faced by UK organisations in aligning with these legislative changes.
A representative survey was conducted to gauge the awareness and preparedness of 80 organisations in regard to the new EU Battery Regulations. An Industry-Academic round table discussion and follow-up interviews were then held to reflect on the implications for industry. The results can be downloaded in the two reports below.
This research was conducted by Dr. Melanie King and Paul Timms (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 discussions or potential applications/collaborations, please contact Melanie King.
Our exciting new project aims to develop a strategy to inform the rebranding of UK digital manufacturing to attract the next generation of talent into UK digital manufacturing careers by 2040.
In May 2023, the team members met at an InterAct research sandpit hosted by Loughborough University, which was held with the aim of developing research projects to accelerate the innovation and diffusion of Industrial Digital Technologies in UK manufacturing.
During the sandpit, it became clear that our interdisciplinary team shared a passion to make UK manufacturing a place that attracts, includes, and supports young talent from diverse backgrounds and mindsets. However, recent research conducted by MAKE UK reports only 2% of the average UK manufacturing workforce is currently below 30 years old [1].
Additionally, a recent InterAct 2023 survey on UK perceptions of manufacturing has found that younger generations identify UK manufacturing as an unattractive brand with uncertain employment prospects which is problematic for attracting ambitious and creative digital talent [2]. These negative perceptions in part could be attributed to older generational memories and experiences of physically demanding manufacturing jobs that fuelled the post-World War II economic recovery. Accounting for the rise of today’s digital labour market [3], these negative perceptions and experiences of UK manufacturing are likely to shape children and grandchildren’s career choices. This all adds up to a generational problem in UK manufacturing which is deep-rooted in the cross-generational experiences of what UK manufacturing once represented and the extensive and diverse career opportunities that are available today and will be realisable the future.
These preliminary findings paint an unsettling picture for UK manufacturing, especially when digital transformation has become a strategic priority for companies [4], industries [5] and countries [6]. At the country-level for example, if the UK is to pursue its levelling-up agenda and overcome its regional [7] and international [8] productivity gaps, then attracting young, digitally literate, and productive workers into well-paid, high-skilled manufacturing careers would seem an intuitive and rational approach. However, academic research continues to report that a major barrier for the digital transformation of older firms in various manufacturing sectors is the legacy of underperforming business models, inefficient workplace practices and traditional organisational structures [9], [10], [11].
These organisational legacies also raise the challenge that new digital competitors – such as the big technology firms and technology start-ups – are perceived to attract younger talent and the career aspirations of Generation Z [12] through creative workplace practices, new organisation designs and innovation cultures.
Therefore, to address this problem, our project intends to co-create the most plausible future scenarios for rebranding UK digital manufacturing to help stakeholders attract the next generation of young talent into manufacturing careers by 2040. As our project is exploratory in design, we will interact with a range of policy makers, educators, employers, and university students to gather insights on how to attract young people into UK digital manufacturing careers by 2040. This will be conducted through six work packages that range from data mining four generations of manufacturing data held by the UK Office for National Statistics to interviews and focus groups with key stakeholders including business owners, industry bodies, technologists, policy makers, educators and students that are passionate about supporting the co-development of UK digital manufacturing.
We will also work with Strategic Innovation Ltd – a technology and innovation consultancy with a passion for sustainability – on a key output which will be the co-creation of a cross-generational map of peoples’ lived experiences of UK manufacturing. This will include both past and present experiences and will visualise potential rebranding opportunities for attracting the next generation of young talent into digital manufacturing careers by 2040.
By providing stakeholders with a visualisation of the future, our project will initiate the development of a strategy for digital manufacturing careers that can play a central role in the UK’s economic and social development at home and overseas by attracting top talent into these roles.
If you or any colleagues would like to participate in our project, please contact Karl Warner, our Principal Investigator at karl.warner@glasgow.ac.uk for further information.
[4] Sousa-Zomer, T. T., Neely, A., & Martinez, V. (2020). Digital transforming capability and performance: a microfoundational perspective. International Journal of Operations & Production Management, 40(7/8), 1095-1128.
[5] Ciarli, T., Kenney, M., Massini, S., & Piscitello, L. (2021). Digital technologies, innovation, and skills: Emerging trajectories and challenges. Research Policy, 50(7), 104289.
[6] Senna, P. P., Roca, J. B., & Barros, A. C. (2023). Overcoming barriers to manufacturing digitalization: Policies across EU countries. Technological Forecasting and Social Change, 196, 122822.
[7] Office for National Statistics (2023) Regional labour productivity, UK: 2021
[9] Warner, K. S., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long range planning, 52(3), 326-349.
[10] Jones, M. D., Hutcheson, S., & Camba, J. D. (2021). Past, present, and future barriers to digital transformation in manufacturing: A review. Journal of Manufacturing Systems, 60, 936-948.
[11] Ates, A., & Acur, N. (2022). Making obsolescence obsolete: Execution of digital transformation in a high-tech manufacturing SME. Journal of Business Research, 152, 336-348.
[12] Barhate, B., & Dirani, K. M. (2022). Career aspirations of generation Z: a systematic literature review. European Journal of Training and Development, 46(1/2), 139-157.
We are at a crossroads, with the opportunity either to progress towards a more equitable manufacturing landscape or to deepen existing gaps. The digitalisation of manufacturing provides a chance to transform the sector into a more inclusive and diverse one. However, if we do not take intentional and proactive steps, this digital transformation could instead reinforce prevailing norms and deepen gender inequalities.
In order to inspire and inform initiatives towards a more inclusive and diverse manufacturing sector, Cambridge Industrial Innovation Policy developed a policy brief to raise awareness about the challenges that women face when participating in manufacturing, while making the case for a gender-inclusive digitalisation. The policy brief was a key output of the InterAct-funded project Women in digital manufacturing and was conducted in collaboration with the Women in Manufacturing Initiative.
In this blog post, we will share some key takeaways from the policy brief.
Women from non-White backgrounds and women with disabilities are among the least represented population groups in UK manufacturing. According to 2022 data, women from non-White backgrounds account for 15% of the workforce, representing just 3% of manufacturing employees. In the same year, women with disabilities, as defined in the Equality Act 2010, represented 9% of the people in employment; however, they made up for less than 1% of the manufacturing workforce.
Representation of women in UK manufacturing is markedly lower in skilled trade occupations (9%); process, plant and machine operatives (23%); and managers and senior officials (23%). In comparison, women’s representation is larger in administrative and secretarial occupations (70%), personal services (55%), and sales and customer service (49%).
Traditional gendered division of labour persists in manufacturing industries. Men mostly dominate the automotive industry, while the pharmaceuticals, textiles, and apparel industries have a more equal representation of both genders.
Unpaid childcare and household work disproportionately affect women’s participation in manufacturing. Women in the UK spend 1.7 more time a day in unpaid childcare than men and 1.4 more time in household work. This traditional gender-based division of unpaid work means that women face larger burdens to participate in paid work, particularly in positions with little flexibility or involving uncertain shifts and locations.
Challenges faced by women in the UK manufacturing sector
We invited stakeholders from the manufacturing sector to participate in an online survey to understand the challenges women face to participate in the sector. Survey participants perceive that the prevailing non-inclusive culture, which continues to favour men over women in manufacturing roles, is the primary hurdle to the participation of women in the industry. This is followed by barriers in promotion and leadership, a lack of awareness and visibility of job opportunities, a lack of skills and training support and work–life balance.
What are some of the challenges preventing equitable opportunities and rewarding careers for women in manufacturing?
Note: Number or respondents = 63.The sum of the percentages exceeds 100% because respondents could select more than one choice.
Source: Women in Manufacturing survey.
The digital transformation and gender diversity in manufacturing
The digital transformation and other recent trends have had mixed effects on gender diversity in the manufacturing landscape. Over the past two decades, the UK manufacturing sector has significantly changed the distribution of job roles within its workforce. Despite labour shortages in roles such as process, plant and machine operatives and skilled trades, which men mostly hold, these positions have seen a notable decrease in their share of manufacturing employment.
Administrative and secretarial occupations, which are mostly held by women, have also seen a decline in employment rates, and this trend is likely to continue in the coming years. In comparison, there has been a substantial expansion in the shares of professionals and associate professional and technical positions.
Changes in manufacturing occupations, 2004 and 2022 (total)
Source: Nomis. Annual Population Survey – Workplace analysis
Changes in the skills required by manufacturing businesses are creating opportunities for women to enter the industry. Skills such as data analysis, forward-thinking and innovation are becoming more relevant, and a growing number of women from different backgrounds have these skills. This positive trend is compounded by the interaction of the digital and the environmental sustainability transitions, which are making manufacturing more diverse.
From 2004 to 2022, there was an increase in gender diversity in several manufacturing jobs. These include professional roles, managers, directors and senior officials, associate professional and technical roles, and skilled trade occupations.
Changes in gender diversity IN manufacturing occupations, 2004 ̶ 2022
Source: Author, based on Nomis. Annual Population Survey – Workplace analysis. For detailed definitions of the nine occupational categories please refer to Appendix A of the policy brief..
The way forward: How can we improve gender diversity in UK manufacturing?
Drawing upon established practices to promote gender equality, 10 practical recommendations are provided in the policy brief for UK organisations to cultivate a more diverse and inclusive manufacturing sector.
Businesses, industry associations and research organisations could:
Collect and analyse diversity data. According to the Make UK ED&I Survey 2021, 47% of manufacturers are not assessing the status of equality, diversity and inclusion.
Promote an inclusive workplace culture through initiatives such as awareness-raising campaigns, diversity and inclusion training and networking opportunities.
Address gender bias in recruitment and promotion by using inclusive language in job advertisements, promoting diverse interview panels and candidate pools, and promoting mentoring opportunities.
Support work–life balance by providing flexible working arrangements, implementing return-to-work policies, promoting the uptake of paternity leave, and offering on- or near-site subsidised childcare, among other initiatives.
Share and recognise examples of best practice by creating spaces for organisations to share their experiences and establishing awards to encourage outstanding practices.
Government organisations could:
Follow a gender-transformative approach in government support programmes. This includes setting targets for reaching women-owned businesses through support programmes, including women’s business organisations in the design of dissemination campaigns, and conducting gender-sensitive evaluations.
Support research on gender equality and gender-disaggregated data collection. We cannot address what we do not know. A critical gap exists in gender-, ethnic- and disability-disaggregated data, as well as in understanding gender differences in the adoption of digital technologies in manufacturing. Bridging this gap requires both allocating funding to expand survey samples and supporting new research.
Adopt a lifelong learning approach in training and education programmes by creating opportunities for women to develop skills at different stages of their lives.
Ensure an enabling environment for improving gender balance in caring responsibilities. This may involve cross-ministerial coordination and collaboration with industry associations to develop and enforce policies that support flexible working, paternity leave, returning to work, and child and adult social-care provision.
The policy brief provides examples of how various types of organisations are implementing initiatives in these areas. These include from a medium-sized business pioneering flexible working in manufacturing, to comprehensive equality and inclusion strategies in a multinational company, and gender-inclusive approaches in digital manufacturing support programmes.
Promoting gender equality not only upholds a fundamental human right but also serves as a catalyst for improved financial and environmental performance, making it imperative to prioritise the increased participation of women in the UK manufacturing sector. The potential economic benefits, as estimated by Make UK, underscore the vital role of gender diversity in closing skills gaps and driving economic growth, potentially adding £7 billion annually to the UK’s gross domestic product.
Finally, while the policy brief provides insights into the dynamics of gender diversity in UK manufacturing, shaped by digital transformation and other contemporary trends, there are still many unknowns that need to be addressed. For instance, we have little understanding of how digitalisation is changing manufacturing workplaces and the challenges women and men face in adapting to and benefiting from these transformations.
Despite increasing commitments to narrowing gender disparities, gender equality remains secondary in importance, particularly in industrial and technology domains. This oversight has resulted in underfunded research and analysis aimed at addressing gender gaps. To pave the way for a more inclusive, innovative, and equitable future in manufacturing, we must collectively tackle these outstanding issues.
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].
