Skip to content
Monday 7 September 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,846.81
+0.15%
DAX
25,937.79
-0.42%
CAC 40
8,272.71
-0.07%
STOXX 50
6,375.44
-0.27%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Thursday 07 April 2016 4:59 am  |  Updated:  Monday 02 August 2021 5:55 pm

Industry 4.0: How disruptive technology can rescue British manufacturing

By: Morning Wire Contributor

Add as a preferred source on Google

Industry 4.0 is revolutionising the way international manufacturers and construction companies approach business, but the UK has a long way to go if its industry is to keep pace with its European rivals.

This new world is based on digitisation, which blurs the line between the virtual and the physical. Connected products and “smart” machines are now able to “talk” to each other, and also to regulate themselves and their working environments.

Industrial jobs and processes are already being impacted by technologies like automation, artificial intelligence, the Internet of Things, big data and nanotechnology. While there is some scepticism about the replacement of human roles by these disruptive trends, their adoption will be essential to UK industry if it is to regain its competitiveness.

The UK manufacturing sector is facing its third recession in a decade, with factors such as the strength of the pound eroding its competitiveness overseas as reported in a recent CBI survey. Meanwhile, UK construction grew at its slowest rate in nine months in January as it continues to experience a widening skills shortage, and a slowdown in housebuilding and commercial property construction.

British industry also continues to fall behind its European counterparts. A recent PwC report found that German industry intends to invest 3.3 per cent of its turnover specifically in Industry 4.0 in the next five years, and expects 12.5 per cent revenue growth. Its manufacturing industry is four times larger than that of the UK, yet invests seven times more in automation. To keep pace, the UK needs to carefully consider its next tech move.

The manufacturing and construction sectors have benefited from automation technology and software developments in the past, be it through higher efficiency gains in the supply chain or safer and faster design of buildings, and some companies are already reaping the benefits of Industry 4.0. Vauxhall, the UK division of General Motors, has implemented 3D printing to increase production efficiency and minimise time to market, while a construction startup in the Netherlands has developed the technology to print foot bridges.

For manufacturing, employing such technologies will lead to autonomous production, and business systems with increased flexibility, better product customisation, localised manufacturing and shorter lead times. This translates into global competitiveness for the industry and easier access to more personalised products for the customer.

The construction sector, meanwhile, is seeing benefits in safety and efficiency from employing technologies ranging from building information modelling to automation. With the former, buildings become digital as much as physical assets. They are visualised, studied and scrutinised. Besides vastly improving accuracy and ease in the design process, this eliminates structural hazards and also helps designers choreograph safety plans for construction workers.

For both industries, the business software designed to support automation is enabling organisations to make better-informed and more effective decisions over other business activities including finance, the supply chain and planning. Real-time data and a wealth of amalgamated insight are the building blocks of these decisions, and organisations are becoming more versatile, not only with more analytical and sophisticated demand forecasting but also with software that can be tailored to respond to changing market conditions.

But in order to make this change a reality, UK industry will need to have employees with the right skills. This is particularly important for construction, as the sector continues to struggle to entice talented and innovation-savvy millennials with science, technology, engineering and mathematics backgrounds. It is also difficult to introduce new technologies such as automation to incumbent workers, who often view it as a threat to their position.

However, as new, digitally-motivated employees move into management roles, we expect to see a proportion of the construction workforce shift away from hard labour towards jobs in automated machine management and maintenance, data analysis and resource planning. In this way, while some positions at the coalface might be lost, most will merely be replaced by highly productive tech-based positions, driven by a combined knowledge of building and technology.

Similarly, manufacturing workers will require hybrid skills as their time is freed up by machines. They will focus on more creative and high-value tasks such as performance analysis, customer engagement, and strategic planning. This shake-up will put the sector on the radar of talented graduates and help address the “productivity puzzle’” alluded to in Barclays’ recent future-proofing manufacturing survey.

As Industry 4.0 penetrates UK manufacturing and construction, automation will change work, not kill it. The early adoption by more industrially-advanced rivals should act as a warning to UK industry – a more focused technical disruption will be crucial to reviving these sectors in the long term.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Opinion

Categories

  • Opinion

Trending Articles

  • Iceland boss Richard Walker vows to set up shop on Falkland Islands

  • Britain ‘taxing itself to death,’ Burnham warned

  • £74m for branded condoms? UK must stop spaffing cash on foreign aid

  • Don’t underestimate the free trade agreement Britain just joined

  • Victoria Beckham owed £350,000 by Harvey Nichols

More from Morning Wire

  • Government to inject millions into electric vehicle firms despite mandate backlash

    Politics
    Car bodies on an assembly line in a UK car plant, showcasing EV manufacturing process
  • Exclusive: Twickenham residents branded anti-fun NIMBYs in rugby stadium row

    Sport Business
    Rugby stadium interior with large screen displaying Red Roses v Ireland, goalposts, and empty green seats
  • EV targets set to be watered down

    Transport & Infrastructure
    Car bodies on an assembly line in a UK car plant, showcasing EV manufacturing process
  • Gradiant Expands US Operations with New Leadership, Office Openings, and Long-Term Services Contracts

    Business Wire
  • Align Technology Prevails in China Patent Infringement Action Against Angelalign

    Business Wire
  • Citi Appointed as Depositary Bank for Agilyx ASA’s ADR Program

    Business Wire
  • ‘We’d love an apprentice – but the government has made it too expensive’

    Economics
    Technician in blue shirt operating a large metal lathe machine, industrial manufacturing process
  • Rehlko Joins Wisconsin Data Center Coalition as Newest Energy Resilience Member, Reinforcing Its Role at the Center of AI and Digital Infrastructure Growth

    Business Wire
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook