UK manufacturers “prioritise cyber risks and digital future post-pandemic”

The ‘Reinventing Manufacturing’ study results reveal how dramatic shifts in the world marketplace, from advances in technology and rising cyber risks through to evolving customer needs and employee behaviours, are transforming the ways in which manufacturing organisations operate. With its far-reaching impact on the economy, supply chains, consumer expectations, jobs and work practices, this transformation has the power to “further re-order the business world” in fundamental ways.  

According to the PwC data, cyber security is an urgent priority for 63% of UK manufacturers with one-in-five of those companies surveyed having experienced a cyber attack. With these risks unlikely to disappear at any point in the near future, almost half of respondents (43%) are investing in application security, firewalls and anti-virus precautions. 

Co-ordinating data security and privacy processes more closely remains an immediate priority for one-in-three firms, with 38% of those questioned focused on their cyber response and recovery plans over the next 12-to-24 months.

Despite this focus, upskilling staff in cyber security is less of a priority for UK manufacturers (35%) compared with the rest of the territories surveyed (43%), with two-in-five stating that conducting cyber-attacked response exercise training is more vital.

Competitiveness and the shift to digital is also playing on UK manufacturers’ minds, as is supply chain planning. The Government’s ‘Help to Grow’ scheme directly responds to these concerns, giving 130,000 businesses the chance to upskill their staff and invest in software and other tools designed to future-proof them for an increasingly digital economy.

Survey analysis

The survey analysis shows that productivity and efficiency is a priority for UK organisations compared to other territories such as Germany (65%), China (58%), Japan (57% ) and the US (52%).

UK manufacturers are prioritising new systems and solutions such as the Internet of Things (78%), public and private cloud (65%) and robotic process automation (47%) in a bid to better meet customers’ demands.

Supply chain transparency and risk analysis is an immediate action point (45%) with vertical integration of the supply chain a longer-term area of focus (33%).

COVID-19 and Brexit have shone a light on supply chain vulnerabilities and caused many organisations to reconsider their approach (whether this involves making supply chains more local or not. As a result, demand forecasting (48%) is among the top supply chain priorities in both the short term and the mid-term.

Track and trace solutions are another focal point in the UK (42%) – almost double that of other territories – with threat map dashboards (33%) projected to see considerable short-to-medium term growth. 

Despite a growing pressure for Governments and businesses to develop and implement environmental, social and governance strategies, supply chain carbon footprint is the lowest priority for manufacturers, not just here in the UK (13%), but also across the rest of the territories (24%).

Unprecedented disruption

Cara Haffey, UK industrial manufacturing and automotive leader at PwC, commented: “As the pandemic took hold, manufacturers faced unprecedented disruption, in turn revealing some weaknesses in their end-to-end activities and an increasing prevalence towards cyber attacks being perpetrated against them. When combined with the impact of Brexit, the period since last March has clearly shown just how vital it is for UK manufacturers to embed agility and resilience into their business models, as well as the fact that they need to act swiftly on this matter.” 

Haffey continued: “As uncertainty in the world persists, organisations must also focus on creating cohesive and complementary digital, trade and green strategies if they are to increase productivity and efficiency, boost profitability and grow market share in an increasingly environmental, social and governance-focused commercial environment.”

In conclusion, Haffey observed: “During the pandemic, UK manufacturers have shown their capacity to react swiftly to new market environments and challenges and forge new inter-sector partnerships and it’s critical they continue to do so as they look to the future. It’s rare for manufacturers to have the capacity, downtime or headroom to make such significant changes. As such, it’s vital that they don’t waste this opportunity.”