As Wales Tech Week draws closer, visitors can expect digital transformation in manufacturing to be one of the main focuses. Technology and digital transformation matters in Welsh manufacturing - and it's easier than you think to get started. We spoke to experts in the industry to see how manufacturing businesses stand to reap huge benefits from tech advances including digital transformation.
Technology and digital transformation matters in Welsh manufacturing - and it’s easier than you think to get started.
We spoke to experts in the industry to see how manufacturing businesses stand to reap huge benefits from tech advances including digital transformation.
The continuing evolution of the factory floor and supply chains is being accompanied by a new era of efficiency and agility, driven by automation, data analytics and interconnected systems.
The possibilities are wide-ranging, according to Aris Syntetos, one of the manufacturing leads at Cardiff University's Business School, which has recently established the Digital Transformation Innovation Institute.
Across supply chain management, customer engagement, product design, production processes and sales, digital transformation is enabling manufacturers to drive improved productivity, innovation, sustainability, and skills development.
A key part of a manufacturer’s overall strategy
Professor Keith Ridgway, Chair of Industry Wales and Senior Executive in Manufacturing at the University of Strathclyde, agrees that no one size fits all, and wants to dispel the misconception that technology is necessarily expensive to implement. He advises manufacturers to start with small changes.
“Digitalisation offers enormous potential for Welsh manufacturing, in terms of improving efficiencies, competitiveness, and the long-term viability of many manufacturing industries.
“But digital transformation cannot be considered in isolation.
It must form a coherent element of a manufacturer’s overall strategy.
The rate of digitalisation – and indeed the very nature of digitalisation – varies tremendously between industries, and even for individual firms within each industry.”
There are government schemes that help businesses take some of these early steps. Industry Wales for example is taking the lead in promoting the Smart Manufacturing Data Hub (SMDH) to Welsh businesses. The initiative is partially funded by the UK Government to increase the adoption of digital technologies to improve productivity. SMDH offers financial and physical support to install digital sensors into factories, and once installed the programme can help businesses to capture the data.
Mike Gillard, from Industry Wales, says: "The SMDH allows full access to the business performance profile for power control data including energy usage, WIP, movement of product, process control etc.
“Digitalisation, data collection and data analysis provide a chance to improve the quality of your product and increase productivity,” he says.
Technology can also be used to reduce risk and build more resilient supply chains, says Philippa Glover, a member of the senior leadership team at Omron, a technology provider in industrial automation, healthcare and electronic components, who is also a Made Smarter Commissioner and sits on the board of Make UK and Innovate UK.
“Moving into fully integrated systems including solid modelling, 3D printing and robotics and linking these into the factory management systems can get expensive.
If you’re taking your first steps, I’d suggest starting slowly with some of the cheaper measures and then building up.”
According to industry body Make UK, the UK is one of the world's biggest manufacturing nations, with the sector's output worth 183bn - 11.3bn of which is in Wales. Across the country, wages in manufacturing are 12% higher than average for the economy. In particular, Welsh wages are 28% higher than the average Wales salary, with the sector employing 147,000 people and representing around 9.7% of Welsh employment.
A survey carried out by the Welsh government for their recent Manufacturing Action Plan, released in May, found that manufacturers face varied challenges. This includes 79% stating they had dealt with supply chain difficulties; 70% revealing they needed to upskill their workforce; 75% saying they've faced pressures caused by rising energy costs; 54% feeling the impact of Brexit had a challenging impact on their business; and 88% of manufacturers responding that they had faced difficulties recruiting staff.
Industry Wales for example is taking the lead in promoting the Smart Manufacturing Data Hub (SMDH) to Welsh businesses.
In 2022, the UK Government's digital strategy "for harnessing digital transformation and building a more inclusive, competitive and innovative digital economy" also highlighted the importance of technology in manufacturing.
SMDH offers financial and physical support to install digital sensors into factories, and once installed the programme can help businesses to capture the data.
Mike Gillard, from Industry Wales, says: “The SMDH allows full access to the business performance profile for power control data including energy usage, WIP, movement of product, process control etc.
Wales Tech Week takes place 16-18 October at the International Convention Centre in Newport. Partners include Cardiff University's Digital Transformation Innovation Institute, and manufacturers can discover new ideas and sources of advice from exhibitors such as the Smart Manufacturing Data Hub (SMDH), which aims to "support companies with digital tools and resources to de-risk digitalisation and drive manufacturing productivity through data innovation". Explore exhibitor opportunities or register for a free ticket at walestechweek.com.
This will give an insight against similar industry benchmarks and as data becomes available, we can advise on opportunities to improve business performance.”
Technology can also be used to reduce risk and build more resilient supply chains, says Philippa Glover, a member of the senior leadership team at Omron, a technology provider in industrial automation, healthcare and electronic components, who is also a Made Smarter Commissioner and sits on the board of Make UK and Innovate UK.
“With global supply chains facing unprecedented disruption there has been a shift to bringing the supply base closer to home to further build resilience, moving from ‘just in time’ to a ‘just in case’ model in order to capitalise on this digitalisation, which is critical.”
The wider picture
According to industry bodyMake UK, the UK is one of the world’s biggest manufacturing nations, with the sector’s output worth £183bn - £11.3bn of which is in Wales.
Across the country, wages in manufacturing are 12% higher than average for the economy.
In particular, Welsh wages are 28% higher than the average Wales salary, with the sector employing 147,000 people and representing around 9.7% of Welsh employment.
A survey carried out by the Welsh government for their recentManufacturing Action Plan, released in May, found that manufacturers face varied challenges.
This includes 79% stating they had dealt with supply chain difficulties; 70% revealing they needed to upskill their workforce; 75% saying they’ve faced pressures caused by rising energy costs; 54% feeling the impact of Brexit had a challenging impact on their business; and 88% of manufacturers responding that they had faced difficulties recruiting staff.
The urgency of tackling challenges and improving economic performance is recognised in both Cardiff Bay and Westminster.
The Welsh Government’s action plan comprises six priorities, including decarbonisation and strengthening collaboration between stakeholders to embrace technological change and speed up the delivery of more commercial innovation.
In 2022, the UK Government’s digital strategy “for harnessing digital transformation and building a more inclusive, competitive and innovative digital economy” also highlighted the importance of technology in manufacturing.
Implementing technological change is not without its challenges, therefore manufacturers need to upskill their workforce and mitigate against any potential risks.
This includes breaches in cybersecurity and the need for operational technology (OT) security.
Ultimately, technology enables manufacturers to deliver exceptional value to customers in a competitive landscape, so embracing change (and making a start) is strategically essential to avoid being left behind.
Wales Tech Week takes place 16-18 October at the International Convention Centre in Newport.
Partners include Cardiff University’s Digital Transformation Innovation Institute, and manufacturers can discover new ideas and sources of advice from exhibitors such as the Smart Manufacturing Data Hub (SMDH), which aims to “support companies with digital tools and resources to de-risk digitalisation and drive manufacturing productivity through data innovation”.
Explore exhibitor opportunities or register for a free ticket at walestechweek.com.
