How AI and automation benefits the engineering and manufacturing sector

Cheaper labour from other parts of the world has increased the need for Europe’s manufacturers to embrace the exponential technologies at their fingertips and make headway in our digitised era. 

The benefits of such are clear, in the pre-production stage artificial Intelligence (AI) can analyse consumer behaviour and geographical data, leading to a better-informed consumer journey lifecycle. It can be used to immerse the consumer and add to the all-round customer experience. In the post-production stage, AI in conjunction with the Internet of Things (IoT) can revolutionise the way that manufacturing and engineering industries train staff and conduct machine diagnosis for better robotics and machine maintenance.  
Automation and AI in many respects walk hand-in-hand, but automation hasn’t always been prevalent in manufacturing; historically a lot of what is now manufactured by machines was done by hand. Technological advances over the last 20 years have meant that automation is now a viable solution to businesses of all sizes to boost productivity in a market that is ever-short of talent in the market. Not only does automation help close the skills gap but it also gives UK businesses a competitive advantage through fast-paced production, repeatability, and better consistency with quality

Automation vs. skill set availability

Currently, the market is somewhat unpredictable and automated processes have enabled businesses to balance cost-effective production with the drop in the value of the sterling. This has meant a rise in the need for professionals who are skilled in managing profit margins particularly project managers and operational leaders with experience of automation; upskilling, and continuous improvement. 
The challenge is the availability of certain skills and the shrinking talent pool as more employers search for the same talent in the market which it makes for an incredibly difficult recruitment process. The concept of benchmarking is dwindling as job briefs become more specific in their requirements; the amount of people available with relevant experience and skills is reduced, particularly when competition is high from other businesses. In this highly competitive recruitment market, it is those businesses that are able to make quicker decisions about hiring that are prevailing.
At the beginning of the year, our consultants revealed the most sought-after skills in engineering and manufacturing:
  • Supplier development
  • Lean manufacturing
  • Multi-project management
  • Customer interface design
  • Preventative maintenance
  • Process design
  • Quality management
  • Strategy and change
  • Programme management
  • Adaptability
These skills were identified as the most in-demand as there is an increasing need for businesses to tightly control costs, minimise waste, and run fast and efficient processes, while maintaining high output and productivity in an uncertain and challenging market. 
With Brexit fast approaching, an EEF report has highlighted that there is a high level of concern among employers about the availability of skilled workers in the UK. The figures released show that 13% of manufacturers have reported an increase in the number of EU workers leaving their business and almost 17% noted a decline in applications from European citizens. As a result of this shrinking talent pool, some 21% of companies are now accelerating their plans for automation, and industrial IoT and AI, also known as ‘smart manufacturing’, is expected to grow significantly within the next five years.

Skills shortage

The increased demand for particular skills will isolate those who have operated in more traditional manufacturing environments and are arguably behind the curve. Automation increases the amount of technical and skilled labour needed, and apprenticeships and upskilling are vital for companies to grow their talent pipeline and retain the skilled entry-level engineers and manufacturers that they have. 
A strong focus should be placed on developing existing staff as this will boost the skills and knowledge base of existing teams to help close the skills gap and adapt to the changing needs of the sector. In order for UK engineering and manufacturing to remain sustainable, the sector also needs to continue to embrace the exponential technologies to fully utilise smart ‘digitised’ manufacturing and reap the benefits.
If you would like to discuss how we can help with your recruitment processes, get in touch with your local Michael Page office today. Alternatively, submit a job spec and one of our expert consultants will be in touch.