Businesses that are fit for the future are excelling beyond their competitors. They thrive by achieving goals such as business growth, increased innovation, and enhanced sustainability. Their strategic foresight and agility have allowed them to succeed amidst uncertainty.

Here are some highlights from our Future Fit data, which show how organisations that effectively integrate sustainability into their operations and projects are better positioned to thrive in the evolving manufacturing landscape.

• Develop a technology investment strategy by focusing on business problems, then identify solutions with tools such as automation and artificial intelligence.
• Embrace environmental responsibility by embedding sustainable practices across the business – not only because it’s the right thing to do, but because it could unlock new business opportunities and protect existing contracts.
• Invest in the workforce, providing employees with the skills and confidence to play their part in driving innovation and competitiveness.

Manufacturers face significant headwinds, from economic and political instability to the demands of decarbonisation. However, our Future Fit research identifies leading firms that are focusing on tomorrow's opportunities. Based on a survey of 100 UK manufacturers, the study highlights adaptability and agility as crucial traits for Future Fit companies navigating sustainability, innovation, supply chain management and talent retention.

“The businesses that are able to swiftly adjust in response to market shifts and disruption are more resilient and competitive,” says Laura Capper, our Head of Manufacturing and Construction. “They stay finely tuned to the changing needs and preferences of their customers, and to maintaining their market relevance.”

Against this backdrop, our research shows the behaviours and attitudes that manufacturers aiming for future fitness should seek to emulate.

• Action-oriented sustainability: Build business cases for sustainability initiatives with clear returns on investment.
• Collaborative initiatives: Partner with value chain stakeholders on sustainability projects.
• Cost savings and bold moves: Focus on easy wins for immediate savings, but also consider transformative changes like a shift into new market segments.

Manufacturers recognise the importance of sustainability, with 78% seeing it as a competitive advantage and 82% believing it engages their workforce.

Being proactive in sustainability serves as a signal of business strength and establishes leadership within your market. Conversely, lacking a sustainability strategy and neglecting opportunities may make it more difficult to attract and retain skilled labour, access capital, or reach end markets.

There are challenges in moving forward on sustainability – shifting regulation, for example, and the need for new technologies. But manufacturers could gain momentum by identifying areas where progress also delivers a return on investment. “Focus on two potential positive outcomes,” Laura suggests. “Some decarbonisation strategies generate cost savings as well as reducing emissions; and some enable manufacturers to seize new revenue streams.”

In the first of those outcomes, Laura points to actions such as improving energy efficiency, reducing waste, and embracing circular economy principles. In the second, she highlights the huge potential of pivoting into the supply chains of businesses such as renewable energy producers and electric vehicle manufacturers.

• Smart business innovations: Look beyond production for technology applications that enhance overall business efficiency.
• Problem-solving focus: Prioritise technologies that address specific business challenges.
• External support: Utilise free resources and advice for technology and innovation.

Innovation is a core skill in manufacturing, with many firms adopting automation and robotics. Future Fit leaders go further by integrating technology into business operations to capture new opportunities.

“Manufacturers are good at what they do, but they don’t necessarily have the expertise to implement an appropriate technology strategy,” says Laura. To successfully implement new technology capabilities, manufacturers should look to follow a systematic approach.

Support is available for manufacturers unsure how to proceed. Initiatives such as the Made Smarter programme provide practical advice. Trusted partners and stakeholders from across the manufacturing ecosystem can also support digital transformation.

• Supplier transparency: Align goals with suppliers and share best practices.
• Continuous improvement: Regularly analyse supply chain performance to foster a culture of improvement.
• Collaborative innovation: Work with suppliers on risk management and innovation to create integrated value chains.

Supply chain management has been challenging, exacerbated by the global pandemic and geopolitical conflicts. Manufacturers are simplifying supply chains and reducing dependency on specific countries through nearshoring, friendshoring, and onshoring. In our survey, 84% prioritise resilience over speed and cost. Leading firms are also building collaborative relationships with key suppliers.

“Building closer supplier relationships through sustainability can be a strategic move, especially with increasing regulation on Scope 3 emissions reporting,” notes Laura.

Only 29% of manufacturers require all Tier 1 suppliers to disclose the details of their own suppliers and only 25% screen suppliers using environmental, social and governance (ESG) criteria. As manufacturers follow suit, they will have the opportunity to build closer connections to their supply networks.

• Map the skills the business will need over the medium to longer term; then work backwards to build a plan for securing them.
• Embrace technology and innovation. Training employees on emerging technologies and fostering a culture of continuous learning ensures they stay at the forefront of industry advancements.
• Build an employee value proposition with broad appeal, particularly in the battle for next gen talent.

The sector faces significant skills shortages, particularly with the rise of digital transformation. Fostering a culture of innovation and learning could provide employees with the ability to develop new skills and capabilities and therefore act as a great retention strategy, too.

“Investing in education by partnering with educational institutions that offer training and education could be really valuable,” Laura says. “Open the doors to schools, colleges, and the local community to dispel the perception that manufacturing is full of grease and oil – rather than at the forefront of technology. Offer internships to give potential recruits a taste of what it’s like to work for the business.”

By showcasing what the sector has to offer – and building an awareness of the broad range of careers on offer in manufacturing – businesses could raise their profile with prospective employees. But they will also need to think carefully about the specific skills they will require in their own businesses and identify strategies for recruiting and retaining talent.

What brings all this together for Future Fit manufacturers? Laura says the key to Future Fit manufacturing is strong leadership and building a skilled team. She urges manufacturers to develop a clear vision for their business by stepping back, analysing market data, and anticipating future trends: “Focus on setting innovation priorities and leverage experts to support diverse thinking for long-term success.” 

By acting now to prioritise change, your business could be more ready to boost future resilience, meet market demand, reduce costs, or access capital. Find out about the ways we could support you here:

Manufacturing

Business Management