Report led by Jürgen Maier says deal between government and industry could put Britain at forefront of new technologies and create thousands of new jobs

This article is more than 2 years old

This article is more than 2 years old

Britain’s manufacturing sector could unlock £455bn over the next decade and create thousands of jobs if it cracks the fourth industrial revolution and carves out a successful post Brexit future.

That is the conclusion of a government commissioned review on industrial digitalisation, published today and led by industry chief Jürgen Maier, the UK and Ireland boss of German engineering giant Siemens.

A deal between government and industry could put Britain at the forefront of new technologies such as robotics, artificial intelligence, 3D printing, augmented and virtual reality, giving a much needed productivity boost and a net gain of 175,000 highly skilled, better paid jobs.

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Maier – who was tasked by Theresa May with providing a longterm vision for the industry – said the ambitious proposals outlined in the review could serve as an “antidote” to some of the tough challenges and higher costs facing the manufacturing sector as a result of the Brexit vote.

“The business and academic community has set out a vision for much greater ambition needed for Britain to be a world leader in the fourth industrial revolution,” Maier said.

“The good news here is Britain is not starting from nothing. The UK has brilliant knowledge, assets and skills in this space but it is sometimes not as organised as it could be.

“This combined package of measures will boost UK growth and productivity in manufacturing and provide more exports and increased earning potential, which our economy desperately needs.”

The 246-page review brings together in a series of recommendations the views and input from over 200 firms and organisations, including Rolls-Royce, Accenture and Cambridge and Newcastle universities.

The so-called “made smarter” proposals include building a national digital ecosystem – to be piloted in the north-west – which would give smaller and medium-sized engineering companies the chance to go to a physical space to experiment with new technologies and see how they might be applied to a process in their own factories. Government support through tax incentives and funding would also facilitate the process of adopting new technologies, the review concluded.

The review also recommends the creation of 12 digital innovation hubs as part of a new national innovation programme to create new technologies and companies, where startups would work with universities and established firms such as Siemens.

Thirdly, it calls for a new national body, titled Made Smarter UK Commission, including representatives from industry, government and academia to safeguard a longterm commitment to the work, which Maier hopes will lead to the “upskilling” of one million industrial workers in Britain.

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The government will now consider the proposals with the ultimate aim of agreeing a sector deal with industry that is likely to involve co-investment. Publication of a government white paper is expected before Christmas.



The business secretary Greg Clark said the review outlined the huge potential digitalisation offers to manufacturing: “The UK manufacturing sector has the potential to be a global leader in the industrial digital technology revolution. Government and industry must work together to seize the opportunities that exist in this sector and promote the benefits of adopting emerging digital technologies, as well as cutting edge business models.”



It is hoped the net gain in jobs would be achievable – despite areas such as robotics and artificial intelligence making some traditional shopfloor roles redundant – through growth in the sector and new roles in IT, analytics, research and development. If taken up, the proposals would contribute an additional 3% to annual growth in manufacturing, Maier said.

Carolyn Fairbairn, director general of the CBI business lobby group said the plans would bring a “new energy” to British industry.

“The UK must compete with China, the US and much of Europe where there are already advanced plans to embrace the fourth industrial revolution,” she said. “I urge the government to consider these plans carefully, as they are focused on increasing productivity and wages, especially in smaller businesses.”