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The potential of coworking spaces to contribute to geographically distributed manufacturing activity and regional levelling up in the UK

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Research overview

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.

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People Productivity Resilience Resources Sustainability

Future of Digital Manufacturing Ecosystems – 2040 scenarios

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Research overview

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.

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InterAct Blog

How can we attract the next generation of young talent into UK digital manufacturing careers by 2040?

Karl Warner (University of Glasgow), Nicola Bailey (Kings College London), Anna Chatzimichali (University of Bath), Malek El-Qallali (University of Bath), Imtiaz Khan (Cardiff Metropolitan University), and Anastasia Kulichyova (Queens University Belfast)

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.  

References

[1] MAKE UK (2021) Manufacturing Our Recovery Through Inclusion (https://www.makeuk.org/insights/reports/manufacturing-our-recovery-through-inclusion)

[2] InterAct blog (2023) Future workforces: job quality & perceptions of UK manufacturing

(https://interact-hub.org/2023/05/23/future-workforces-job-quality-perceptions-of-uk-manufacturing/)

[3] Digital Skills & Jobs Europa (2023) The Rise of the Digital Labour Market (2022)

(https://digital-skills-jobs.europa.eu/en/inspiration/research/rise-digital-labour-market-2022)

[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

(https://www.ons.gov.uk/economy/economicoutputandproductivity/productivitymeasures/bulletins/regionallabourproductivityincludingindustrybyregionuk/2021)

[8] Office for National Statistics (2023) International comparisons of UK productivity (ICP), final estimates: 2021

(https://www.ons.gov.uk/economy/economicoutputandproductivity/productivitymeasures/bulletins/internationalcomparisonsofproductivityfinalestimates/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.

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People Resources

Women in manufacturing: the case for a gender-transformative digitalisation

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Research overview

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.

The project ‘Women in digital manufacturing’ brought together academics and practitioners to raise awareness about the challenges that women face when participating in manufacturing, while highlighting the transformative potential of digital technologies in creating a more diverse and inclusive manufacturing sector.

This policy brief aims to inspire and inform gender-transformative initiatives that challenge unequal gender relations and discriminatory norms and practices within the manufacturing sector. It offers insights into the state of women’s and men’s participation in manufacturing, and through the narratives of accomplished professionals in the field, it unveils the barriers that women face to enter and advance in this sector. The policy brief offers practical recommendations for businesses, industry associations, and research and government organisations to promote gender diversity and inclusion within the UK manufacturing sector.

This research was conducted by Dr. Jennifer Castañeda-Navarrete, (IfM Engage, University of Cambridge). 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 collaborations, please contact Jennifer Castañeda–Navarrete.

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InterAct Blog

Industrial metaverse for manufacturing systems: hype or future reality?

Nikolai Kazantsev (IfM, University of Cambridge), Russell Goh (IfM), Bethan Moncur (IfM), and Chander Velu (IfM)

Our project aims to provide a coherent interdisciplinary summary of established knowledge from academia and practice on the application and potential benefits, barriers, and risks of a metaverse in manufacturing, mainly focusing on bridging technical and social insights.

Metaverse is expected to provide numerous benefits, particularly in production process optimisation, employee induction and collaboration. The most surprising research finding so far is just how varied the definitions of metaverse are. For our study, we define industrial metaverse as” a sensory environment that uses extended reality to blend the physical and digital worlds to transform how businesses design, manufacture and interact with objects”.

The existing industrial cases reveal technological barriers such as immaturity, lack of sufficiently strong communication networks and sustainability concerns. Other cases include cybersecurity risks like cyberattacks and data protection/privacy issues. The social barriers include jurisdictional and legislative difficulties, lack of cooperation between companies necessary to achieve interoperability and the need to change worker and user mindsets. 

Figure 1. Industrial metaverse as a new interface to the products’ manufacturing system

Although the data suggests immersion as a driving force of the metaverse[1], a full immersion can not be achieved without impacting the senses and feelings of a user. For example, in sensory marketing, similar impacts (experience stimuli) are used to trigger purchasing intention (Dewey, 1925; Schmitt, 1999), however, in the physical reality. Hence, we envision a similar trend in the digital world, where an industrial metaverse will extend the numeric and graphical data (such as reports) into coherent immersive experiences that will also affect feelings, Figure 2.

Figure 2. Industrial Metaverse as a combination of senses stimuli

Our conceptualisation efforts aim to prototype an industrial metaverse that activates several senses (sight, sound, temperature, and smell) and test how the extended experience triggers actions.

“Highly promising results are expected for the intersection of resilience and sustainability,” said Nikolai. “For example, based on the sensory marketing research that positions smell as the strongest attractor for purchasing decisions, we aim to virtualise the production conditions with sight, sound, temperature, and smell and enhance experience stimuli in the metaverse. We think it will better inform purchasing choice and support the demand pattern for clean energy, ethical production, and fewer emissions along supply chains.”

After the first results of the systematic literature review, we wish to explore the feasibility of the extended reality to shift decision-making towards more expensive but more sustainable decision-making along the manufacturing value chain[2]. Over the following months, our research aims to exemplify our concept using a scenario based on food manufacturing system for chocolate production. To do so, we will integrate the popular Augmented Reality platform with audio, temperature and smell generator devices to extend the experience for a policy-maker, manufacturer or customer making a hard choice between a cost-efficient vs. sustainable manufacturing system. This prototype will be used as a sensory dashboard for an extended representation of material sources, production conditions, carbon footprint and energy sources to better inform the stakeholder about the impacts of their decision.

“Carbon emission, working conditions, and energy consumption remain underexplored in the real world but visible in the metaverse. Hence, the metaverse can be used to raise awareness about manufacturing systems.”

Yet, It is unclear if being informed on carbon emissions in real-time will impact manufacturers’ use of their machines and shift the regulation imposed by policymakers. For example, would the smell of burning Amazon forests shift a consumer’s decision-making closer to more expensive sustainable purchase better than the printed carbon footprint number on the product package?

Figure 3. Industrial metaverse as a sensualisation of real-time data sharing   

The project has an open innovation philosophy, so we wish to create a discussion space around the metaverse application for manufacturing and are open to collaboration with the InterAct researchers and the industrial community.

To disseminate the findings, we plan to run a public event involving technology providers, industry, academia and stakeholders from the local public administration at the end of 2023.

References

Academic

Dewey, J. (1981). The later works, 1925-1953 (Vol. 3). SIU Press.

Schmitt, B. (1999). Experiential marketing. Journal of marketing management, 15(1-3), 53-67.

Petit, O., Velasco, C., Wang, Q. J., & Spence, C. (2022). Consumer consciousness in multisensory extended reality. Frontiers in psychology, 13.

Industrial

https://www.radiantvisionsystems.com/blog/creating-full-sensory-experiences-future-ar/vr/mr/xr

https://www.ericsson.com/en/6g/internet-of-senses

https://www.bitstamp.net/learn/web3/extended-reality-virtual-reality-augmented-reality-and-more/

https://www.designnews.com/augmented-reality/metaverse-will-engage-all-five-senses

The Fourth Sense: How Can Smell Deepen Immersion? 

[1]64% of industrial cases describe metaverse as a realistic user experience

[2] The team is considering to apply for further funding via the newly launched Impact Booster Competition of Made Smarter Innovation Challenge

Categories
Resilience Resources

Business model innovation and digital servitization in UK manufacturing small and medium sized enterprises

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Research overview

This project explores the application of digital servitization business models in the context of UK Manufacturing Small to Medium Sized Enterprises (SMEs), by empirically depicting its antecedents and firm-level implications. Following the completion of a large empirical study, the key contextual and organisational factors that determine successful implementation of business models have been identified. The study’s key findings suggest that SMEs can achieve high performance through adoption of digital servitization business models, depending on how well each model aligns with the organisation’s context and design.  

To assist the UK Manufacturing community, in addition to the main report, the project’s deliverables are accessible to stakeholders through its dedicated microsite, SME toolkit, video training manual and practitioner webinar.

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Project microsite 

The microsite provides SMEs with a valuable resource that practitioners can engage with, to better understand digital servitization and its corresponding business models. Developed in an illustrative manner, the microsite provides a visual overview of the study’s data and key findings and constitutes the project’s primary means of impact on business practice. 

Access the project microsite

SME toolkit 

A key project output, the self-assessment toolkit aspires to assist SME principal decision-makers in diagnosing the contextual and organisational conditions of their business and determine the suitability of digital servitization business models. Toolkit users are invited to complete an anonymised questionnaire and in turn, they receive a recommendation of which business model might represent the best match to their current conditions. 

Video training manual 

The video training manual represents a step-by-step guide to the toolkit and provides users with the key terms of interest and the process of answering the toolkit questions.  

Online webinar 

As a primary dissemination activity, the project’s first ex-post webinar has been delivered in early August 2023 to raise awareness about the project, communicate the study’s findings and promote the publication of the main report and its accompanying intellectual outputs. 

watch the webinar recording

This research was conducted by Dr. Dimitrios Dousios and Dr. Antonios Karatzas (University of East Anglia). 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 Antonios Karatzas.

Categories
News

InterAct Systematic Reviews second funding round – successful projects announced

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InterAct is pleased to announce the recipients of our second round of Systematic Review funding. These two projects are led by Dr. Dalila Ribaudo of Aston University and Dr. Nikolai Kazantsev of the Institute for Manufacturing, University of Cambridge. The projects will focus on topics relating to ‘Manufacturing in the metaverse’ and ‘Perceptions of manufacturing’.

Manufacturing in the metaverse: Conceptual model and future research directions

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Principal Investigator:

Professor Chander Velu – Institute for Manufacturing, University of Cambridge.

Lead researcher:

Dr. Nikolai Kazantsev – Institute for Manufacturing, University of Cambridge.

Project Outline:

The industrial metaverse uses ‘virtual and augmented reality to blend the physical and digital worlds to transform how businesses design, manufacture and interact with objects’.

The project aims to provide a coherent interdisciplinary summary of established knowledge from academia and practice on the application and potential benefits of a metaverse in manufacturing, mainly focusing on bridging technical and social insights.

The specific objectives are:

  1. To clarify the terminology, technologies, and roles the metaverse can play in manufacturing.
  2. To derive the barriers, drivers and benefits of adopting the metaverse for individuals, firms, the manufacturing ecosystem and the economy.
  3. To summarise a conceptual model and outline future research directions of an industrial metaverse in manufacturing.

The industrial metaverse is often explored solely from a technological perspective despite being a fast-growing field of study in various domains. As a result, complex terms and concepts are misinterpreted by the industry, resulting in an overlapping stack of technologies and, therefore, unclear evidence of the application of the concept in manufacturing.

By investigating overlooked social and economic factors behind metaverse applications, the project aims unlock the virtual space for goods manufacturing and transaction, and discover how the interactions between firms and customers happen.

The team is open for collaborations on this research. Please contact nk622@cam.ac.uk if you are interested.

The purpose of a potential collaboration would be to better inform research on the positioning of the metaverse as a technological tool in manufacturing.

The team are keen to hear from:

  • Industrial partners who have already applied some elements of virtual reality or who want to do so soon, but are unclear on how to progress due to the perceived risks or unclear benefits of the technology.
  • This could be technology providers, such as Vuforia, Hololens (MST), Meta or creators of alternative augmented reality glasses.

How to make manufacturing charming again? It is everything, everywhere, all at once.

Kawee / Adobe Stock

Principal Investigator:

Dr. Dalila Ribaudo – Aston University

Co-investigators:

Dr. Guendalina Anzolin – University of Cambridge

Dr. Jennifer Castañeda-Navarrete – University of Cambridge

Project Outline:

The aim of this project is to conduct a comprehensive literature review of the perceptions of manufacturing, with a particular emphasis on international industrial strategies.

The team plans to analyse how perceptions of manufacturing have been changing across countries and how governments are taking actions to bring manufacturing back into the policy agenda. One of the main areas where this is happening is the adoption of digital technologies, a field where the changing features of manufacturing are evident.

For example, policy makers need to design industrial strategies that address both the increasingly higher requirement for skilled labour, and firms’ adoption of digital technologies, while also developing strategic sectors, such as semiconductors.

This study will reveal how countries prioritize manufacturing in the context of national and regional industrial strategies (i.e., for example with the levelling up agenda in the UK and the Innovation and Competition Act in the US.

There are four main topics the team will examine that can be linked to negative perceptions on manufacturing:

  1. It is believed to be a declining industry, replaced by services, especially in advanced economies.
  2. Manufacturing is a low-skilled and low-paying employment environment.
  3. Manufacturing is a dirty and polluting industry that harms the environment.
  4. Ideological as well as practical barriers for policymakers to provide sufficient attention to manufacturing.