Foreword
Inspiring innovation uncovered in the Future Factory research programme
ACTIVATING ACCELERATION Not long ago, sensors to capture granular reasons for downtime and waste losses were a Willy Wonka fantasy. Now, we barely raise an eyebrow when we find out generative AI is being used to develop recipes. Factories are identifying preventative maintenance using audio capture? Of course, why wouldn’t they? AI, digital technologies and automation are revolutionising food and drink manufacturing. They’re boosting productivity, efficiency and innovation across everything – from supply chain management to demand forecasting, product development and quality control. These are undeniably exciting times in the UK’s largest manufacturing sector. Transformation is widespread and certainly not limited to large organisations. I spoke to an inspirational confectionery manufacturer as part of the industry-wide research for this report. This particular business successfully drove year-on-year growth by identifying and automating bottlenecks and then reinvesting profits to drive further productivity. The next step is to use generative AI to answer detailed technical specification questions where it once took decades of experience to acquire the knowledge. It’s truly impressive. After a period of extreme turbulence marked by economic uncertainty, a cost of living crisis, global geopolitical instability, labour shortages and changing consumer priorities, we’re entering a critical period. The industry hums with opportunity. Advanced technology, like robotics and AI, is poised to take it into a new era. So, as businesses, as an industry and the country as a whole, how can today’s innovative digital solutions be used effectively to fulfil food and drink manufacturing's full potential? The first step in the research programme for this report has been to build a case for increased focus and investment in food and drink manufacturing. Benchmarking with leading world economies over the coming pages reveals that while the sector already performs strongly among G7 countries , improving productivity and becoming world leading could unlock an additional £7-14 billion in value for the UK economy.
Smart factory A drinks manufacturer is achieving an Amazon-style, lights-out smart factory, powered by sensors, software and automation and scaling the approach across its portfolio.
Looking to other industries, transport and engineering manufacturing has received 3.6x the investment over the past 20 years, generating £5 of value for every £1 invested. In contrast, the food and drink sector’s return on investment is markedly higher, at £9 for every £1, representing a significant investment opportunity before returns diminish. The data demonstrates what we all instinctively feel: now is the time for focus, with AI and other digital solutions being key levers to improving today’s productivity and efficiency challenges. To find the best places to hone in on and how to overcome the obstacles holding businesses back, the research programme opened up discussions with senior leaders at the heart of the issue from right across the UK. Food and drink manufacturers also contributed through in-depth questionnaire responses. This report reveals their thoughts. It then outlines practical strategies for sustaining momentum in AI and automation, drawing on Newton’s 20 years’ walking the factory floor and helping organisations embed innovations to increase performance and profitability. Thank you to everyone who has taken part in the programme and especially to the team at the FDF who supported the research. Improving collaboration and championing industry brilliance has been consistently called for. That’s why this is not a one-off report but part of a dynamic campaign with the FDF to spur on meaningful business and industry change. In light of the government’s recent Industrial Strategy Green Paper, the timing could not be better. There’s no doubt in my mind: this is the moment to harness the full power of AI, automation and digital to create a food system fit for a fast-changing world. Junaid Mujaver, Partner, Newton
AI-powered strategy AI is being used to support commercial strategy – from determining pricing strategy to optimising product range and distribution.
Optical sorting Enhanced with AI, optical sorting is being used for the delicate jobs of classifying and grading fruit.
Product development AI is creating new food and drink variants – predicting flavour, texture and aroma preferences for consumers across the world.
Technical specifications Small and medium-sized enterprises (SMEs) are using generative AI to supplement technical knowledge.
ESG reporting Generative AI is interpreting raw product specifications to automate Environmental, Social and Governance (ESG) reporting.
6
7
Made with FlippingBook - Online catalogs