Most UK manufacturers believe that digitisation is crucial to enhancing productivity, and yet there remains an industry-wide reluctance to implementing digital technologies. Epicor examines the cultural, financial and operational barriers separating belief from action, before sharing 7 ways businesses can assess their readiness for digitisation.
Digitisation in the UK manufacturing sector appears to be at a pivotal moment. According to the 2024 Make UK survey, while an overwhelming 71% of firms agree that digital technologies are key to enhancing productivity, only 12.5% have made digital technology central to their business strategy. This gap between belief and action highlights a sector caught between recognising the potential of digital transformation and the reality of implementing it.
Many UK manufacturers, particularly small and medium-sized enterprises (SMEs), continue to rely on legacy systems. This reliance is driven by a mix of cultural, financial and operational factors. At the core is a deep-seated comfort with the status quo. These businesses have often used the same systems and processes for decades, and those systems have proven reliable. The idea of replacing them with unfamiliar digital tools can feel risky, especially when the current setup still “gets the job done.”
This sense of comfort is reinforced by the perception that digitisation is inherently disruptive. Manufacturers worry that introducing new technologies could lead to downtime, production delays, or even system failures. In industries where margins are tight and customer deadlines are critical, even a brief disruption can have serious consequences. As a result, many firms adopt a “mend and make do” mentality, preferring to patch existing systems rather than overhaul them.
Financial concerns present another significant barrier. Digitisation often requires substantial upfront investment—not only in hardware and software but also in training, integration, and ongoing support. For SMEs with limited budgets, these costs can seem prohibitive. Even when funding is available, the return on investment may not be immediately visible, making it difficult to justify the expense to stakeholders.
The challenge is further compounded by a lack of digital skills within the workforce. Many manufacturers lack employees with the technical expertise to evaluate, implement, or maintain digital systems. Hiring new talent is costly, and training existing staff takes time and resources. This skills gap often leads to a reliance on external consultants, which can increase both complexity and cost.
Integration issues also play a role. Legacy systems are often deeply embedded in a company’s operations and replacing or upgrading them can be technically challenging. New digital tools may not be compatible with older infrastructure, requiring custom solutions or even complete overhauls—adding to the perceived risk and cost.
Short-term thinking is another obstacle. Many manufacturers are focused on meeting immediate production targets and customer demands. Strategic planning for long-term digital transformation often takes a back seat to day-to-day operations. Without a clear digital roadmap, companies may struggle to prioritise or coordinate their efforts, leading to fragmented or stalled initiatives.
Regulatory and compliance concerns can also discourage change. Legacy systems may already be aligned with industry-specific regulations, and manufacturers may fear that new digital tools could introduce compliance risks or data security vulnerabilities. This is particularly true in highly regulated sectors such as aerospace, pharmaceuticals, and food production.
Leadership mindset is a final, but crucial, factor. In many traditional manufacturing firms, decision-makers may be older and less familiar with digital technologies. This generational gap can lead to a more conservative approach to innovation. Without strong leadership advocating for change, digital transformation efforts often lose momentum or fail to launch altogether.
So how can manufacturers assess their readiness for digitisation?
7 Focus areas to consider
The first step is to evaluate their current level of digital maturity. This involves understanding what technologies are already in use, how automated their processes are, and whether data is being collected and used effectively. Tools like the Made Smarter Digital Maturity Assessment can help benchmark progress.
Next, manufacturers should assess their workforce. This means determining whether employees have the digital skills needed to work with new technologies and whether the company culture supports innovation and change. If the workforce is resistant or lacks training, that’s a clear area to address.
IT infrastructure is another critical factor. Companies should examine whether their current systems are modern, secure and capable of integrating with new digital tools. Reliable internet connectivity and strong cybersecurity measures are also essential.
Data readiness is equally important. Manufacturers need to ensure they are collecting data consistently, storing it in accessible formats, and using analytics tools to gain insights. Without good data practices, digitisation efforts may fall short.
Strategic alignment is key. Digitisation should support the company’s broader business goals. This means having a clear digital strategy or roadmap and ensuring that leadership is committed to driving transformation. If digital initiatives aren’t tied to measurable outcomes, they’re less likely to succeed.
Financial readiness must also be considered. Companies need to understand whether they have the budget to invest in new technologies, and whether they’re aware of funding opportunities such as grants or tax relief.
Finally, manufacturers should evaluate their ability to manage change and risk. This includes having processes in place to handle the risks associated with digital projects and a plan to support staff through transitions.
In summary, while the UK manufacturing sector recognises the value of digitisation, many firms remain hesitant to act. By addressing the cultural, financial and operational barriers, and by assessing their readiness across key areas, manufacturers can begin to close the gap between digital ambition and digital action.
To discuss any of these areas in more detail, book time with Epicor’s advisors via its website.
