UK Manufacturers embrace digital technologies to achieve Net Zero
23 Jul 2023
UK manufacturers are making significant strides in their digital transformation journey to achieve Net Zero goals, suggests research conducted by Make UK and Sage.
The Decarbonisation through Digitalisation study says evidence indicates that manufacturing businesses are increasingly investing in digital technologies to boost productivity, improve products, reduce waste, and cut greenhouse gas emissions.
Nearly half of the respondents said they had plans to invest in digital technologies for decarbonisation, with almost a quarter having already done so. The implementation of digital tools, including data analytics and supply chain management, has contributed to energy cost savings for 62% of companies, with half reporting significant productivity improvements.
Despite the positive progress, obstacles to digitalisation remained, with cost concerns being a significant deterrent. The study suggests that tax incentives and upskilling programs could facilitate digital adoption in the sector.
Make UK’s CEO Stephen Phipson commented: “Britain’s manufacturers have long been at the forefront of digital innovation globally and they have taken significant steps to cut carbon emissions and move towards Net Zero.
“We need to see an expansion in the R&D tax relief to include capital equipment relating to industrial decarbonisation and the introduction of a Help to Grow Green tax credit to incentivise businesses to take those first active steps to produce goods more sustainably at a time companies are cash-strapped through the burden of higher labour and energy costs.”