Survey: UK manufacturing industry leads the way in automation

A new survey of Britain’s chief financial officers (CFOs) and financial directors (FDs) has found the manufacturing industry has led the way in automation uptake.

The report, called New Economy: Investing in Automation, found 93% of manufacturers having automated a key process in the last year, compared to a national average of 87%.

Overall 21% of CFOs view automation as their most important investment priority in the next five years, while two thirds of the FTSE100 companies prioritised automation in the last year. The survey also found 9% of their allocated budget is dedicated to automation.

31% of businesses have already introduced AI into their day-to-day operations, while 24% make use of robotics.

While automation has been a pivotal area of development for the manufacturing industry for some time, the professional services industry is also embracing its potential. 67% of CFOs in the professional services sector are considering or have already implemented AI.

22% of finance heads support the view that automation poses a threat to job security, and similar number (21%) believes more jobs will be created.

They predict automation will provide new growth opportunities for businesses, requiring a larger number of workers to facilitate its development. 39% of finance heads have invested in further training to equip staff to make the most of automated processes and ensure productivity levels are high.

Tony Spillett, head of technology & media at BDO, commented: “Automation is already having a transformative impact on businesses up and down the country. How leaders approach it in the coming years will be crucial both for their own businesses as well as society more broadly. While some caution is required, particularly given the potential for physical and financial upheaval, all businesses, no matter their size, sector or structure, must come to terms with the role it will play in our future and explore the opportunities it can bring.

“What’s clear is that many companies are only just getting started and are taking an open-minded approach. It’s important to recognise that investing in automation can provide not just greater capabilities for the business as a whole, but greater opportunities for employees – with expanding skillset and knowledge.”

Whilst investment in automation is happening across all regions and sectors in the UK, BDO uncovered certain trends:

• In terms of optimism, leaders in Scotland and the Midlands are most positive about automation, with 61% and 56% respectively seeing it as an opportunity, versus companies in the North West, where only 35% do.


• Scotland is the region that has the most number of CFOs ranking automation as the most important investment priority for the next year (17%). This is followed by London (13%) and Yorkshire (12%).


• However with regards to investment other sectors are catching up. Retailers and professional services firms are both investing 12% of company spend on automation compared with manufacturers, who are investing 9% of their total spend. 42% of retail CFO’s stating that automation is their most important investment opportunity over the next five years, compared with 34% of manufacturers.