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About the Future Factory research programme

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

The Future Factory research programme underpins this report – as well as informing discussions at the follow-up roundtables with senior industry leaders and the final recommendations to the UK government. It is based on interviews with: § Senior leaders including managing directors, supply chain and procurement leaders, data and analytics officers and site managers at 30+ UK food and drink companies, covering big players and growing businesses including Aldomak, Britvic and Associated British Foods

Research programme

Report

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 challenges by taking a long-term vision while implementing digital solutions iteratively and delivering tangible business outcomes; § 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. 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.

Public bodies, including Innovate UK Business Connect, the Manufacturing Technology Centre and Advanced Manufacturing Research Centre (AMRC)

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Roundtables

§ Recruitment and innovation experts such as Wilton & Bain and Sheffield Hallam University Advanced Food Innovation Centre FDF members also provided views on the food and drink manufacturing industry through detailed questionnaires. These qualitative insights, and Newton’s 20 years’ navigating complicated systemic challenges, have been synthesised with a detailed literature review and analysis of key economic and industry indicators. This approach aims to provide a robust, data-driven, insight-led perspective on the productivity, performance and potential of the food and drink manufacturing industry as benchmarked against other countries and manufacturing areas.

Food & Drink Technology Task Force

Recommendations to UK government

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