Manufacturing News – December 2024
Estimated reading time 2 minutes
A gauge of British manufacturing activity released on Monday pointed to the sharpest contraction in nine months, as orders from domestic and foreign customers fell and ongoing supply chain disruption pushed up costs. The S&P Global manufacturing Purchasing Managers’ Index (PMI) sank to 48.0 in November from 49.9 in October – below an earlier estimate of 48.6 and the 50 level that divides growth from contraction.
S&P’s PMI cited headwinds from a £25bn ($32bn) rise in employment taxes in the new Labour government’s 30 October budget, a seven per cent increase in Britain’s minimum wage, disruption to shipping in the Red Sea and the threat of global goods tariffs. “Manufacturers are left facing an environment of high costs, low demand and raised uncertainty for the foreseeable future,” S&P director Rob Dobson said.
The manufacturing industry faces a critical turning point as new research from IFS reveals a troubling trend – manufacturers know digital transformation is essential, but are falling behind due to ‘option paralysis’ and unable to capitalise on advancements in their industry.
The study surveyed 815 global manufacturing leaders and found that while they all admit their businesses cannot survive without the right technology, fewer than 10% qualify as digital leaders. A striking 65% of respondents labelled themselves as ‘laggards,’ falling dangerously behind and stalled at the early stages of digital transformation with no firm plans in place.
Britain’s manufacturers are set to step up their level of investment in AI in the next 12 months, according to a Make UK report published today in collaboration with Autodesk.
Key findings:
- Two thirds of British manufacturing companies using AI in their business
- Yet only 16% feel knowledgeable about AI potential
- Hence only a third of companies using AI in manufacturing processes
- Majority using AI (9 in 10) using it to optimise energy use
- Use of robotics remains weak, despite global automation opportunities
- 75% of companies plan to increase AI investment in the next year
- https://www.themanufacturer.com/articles/industry-set-to-increase-investment-in-ai-make-uk-autodesk-report/?utm_campaign=Digital%20Briefing%202024&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz–qVy1xEBtU6z9dxnMNbhioZK5yZPKoC92pRaJRk-z2l9kgdmfTFV1M1CS5kgbd9Q0_Yjv2
