Partner Article

North East manufacturers eyeing R&D investment, finds KPMG report

According to a new study from KPMG, manufacturers in the North East are looking to drive up investment in R&D to help grow their businesses.

The accountancy giant’s Rethink Manufacturing report found that 72% of manufacturers with operations in the North East believe that innovation remains vital to the industry.

37% of the region’s manufacturers surveyed said they plan to increase R&D activities over the next three years, whilst a third of respondents cited investment in new technology as one of the top three internal factors that would help boost their organisation’s productivity.

Debbie Reith, Senior Manager, Innovation Reliefs and Incentives at KPMG in Newcastle, said: “The impact and importance of innovation for UK industry has been clearly recognised by manufacturers in the North East.

“The onus is now on management teams to act and embrace the latest developments in technology to further boost the region’s manufacturing credentials around the world.”

North East manufacturers recognised the step change that new technologies will deliver to the heart of the sector.

More than half (56 per cent) said Industry 4.0 - the creation of “smart factories” using the latest digital technology - presents an unprecedented opportunity to revitalise UK manufacturing. Many of the respondents (39 per cent) conceded Industry 4.0 will have a major impact on their business model.

In response, NE firms are increasing their investment in technology. At present, nearly half (48 per cent) of respondents said they are already investing in the Internet of Things. Around a third (35 per cent) said they were planning to boost their investment in this area before 2020.

Automation and advanced robotics are also high on the agenda. In the next three years, a significant proportion of manufacturers in the North East plan to boost their investment in both fields - over a third (37 per cent) identified automation and 35 per cent noted advanced robotics as areas of priority.

Reith added: “The Government has already announced or launched a host of initiatives that champion innovation, such as its £2bn R&D fund for emerging technology, which includes artificial intelligence and robotics, and changes to make claiming R&D tax credits easier.

“That commitment can make a real difference to the fortunes of manufacturers, but it will depend upon the determination, vision and proactivity of business leaders to seize those opportunities.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →