BECOMING WORLD LEADERS WOULD UNLOCK £7–14 BILLION OF VALUE FOR THE UK ECONOMY Executive summary Compared to other G7 countries and Europe, the UK performs well in terms of the gross value added (GVA) per employee, with only USA, Canada, Netherlands and Belgium performing significantly better. If the UK is to transition from great to world-leading, this could unlock a further £7–14 billion of value for the economy, representing a 22 – 44% improvement (2 – 4% annual improvement above inflation over 10 years). Food and drink manufacturing has huge investment potential Compared to other UK advanced manufacturing, food and drink has only seen 27% of the investment that transport and engineering has over the last 20 years. However, food and drink manufacturing has returned £9 for every £1 invested in that period, with transport and engineering returning £5 for every £1. How well is the industry adopting automation, digital and AI? Now, after a period of turbulence, the industry is innovating extensively including in the use of AI as it moves into a new era. From manufacturing, R&D, procurement, commercial and the supply chain, there are great success stories across the industry in companies of all size. While these technologies hold enormous promise, their adoption is not without challenge. There are three key obstacles standing in the way of sweeping transformation: 1. Proving return on investment quickly enough 2. Attracting top talent to drive digital transformation 3. Integrating innovative solutions into legacy systems
Can the digital age propel UK food and drink manufacturing from great to ground-breaking? The question is, how can the industry overcome these obstacles so it thrives in the digital age? The answer lies in investing strategically and collaborating closely. To unlock the sector’s full potential, a united focus is required, with everyone also playing their own role in the transformation: businesses can overcome legacy infrastructure the sector can work together to activate talent, drawing the right people in by focusing on purpose, the opportunity to work on complex manufacturing problems, the real world impact the sector offers, and creating a culture where diverse talent can thrive; and if the system comes together as a whole – manufacturers, retailers, suppliers, technology and government – to rewrite the rules of engagement on how we collaborate, we can supercharge collective productivity and growth. challenges by taking a long-term vision while implementing digital solutions iteratively and delivering tangible business outcomes; If the UK can direct investment and resources to the right places to overcome industry challenges, the food and drink manufacturing sector has a remarkable opportunity to set a global example of how digital transformation can drive true economic growth.
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