Digital Technology Adoption in UK Manufacturing Firms, 2024

Abstract

This project investigates the factors that encourage or hinder digital technology adoption among UK manufacturing firms. Through interviews with industry stakeholders, the study found that efficiency, productivity, sustainability, and workforce development are key motivators for adopting digital tools such as predictive maintenance systems, real-time data analytics, and 3D modeling. These technologies enhance decision-making, reduce operational costs, and help firms meet environmental and regulatory demands. However, many manufacturers—particularly small and medium-sized enterprises—remain hesitant due to implementation risks, uncertain returns, and high costs of advanced systems. Challenges such as fragmented systems, security concerns, and insufficient post-adoption support further impede adoption.This project draws on the classic Bass innovation diffusion theory to develop a model that captures the diffusion processes of digital technologies within the UK manufacturing industry. To attain these objectives, this project conducted in interviews involving manufacturing enterprises, industry experts, and digital technology providers to understand the current barriers and enablers of digital technology adoption in UK manufacturing industry.</p