Automating UK supply chain from the top down

UK MANUFACTURING needs to bolster its domestic automation systems integration (SI) supplier base.  Key to this is the formation of strategic partnerships between large corporations and the small and medium-sized enterprises (SMEs) within their supply chain. Large manufacturers also need to engage with SMEs within their component parts tier supply chain and push them towards automation solutions to boost their competitivity against imports. This collaborative, multi-tier approach is vital for overcoming existing challenges in automation adoption such as skills availability, a lack of commitment to invest and a lack of general ambition for advanced manufacturing. 

Large corporations and SMEs: a symbiotic relationship

Encouraging large corporations to work with and mentor local SME tier suppliers’ partners could be a powerful catalyst for growth. Large corporations often possess substantial financial resources, market reach and established infrastructure. However, they can sometimes lack the agility, specialised niche expertise and innovative spark that characterises many SMEs. Conversely, SMEs, while innovative and nimble, frequently struggle with funding, scalability and market access.

Partnerships between the two offer mutual benefits that strengthen the UK automation sector. For corporations, SMEs provide cutting-edge, bespoke solutions without the internal heavy R&D burden. Collaborating locally also enhances supply chain resilience, reduces dependency on global suppliers and supports efficiency through flexible, cost-effective solutions. Joint projects foster knowledge transfer, as larger firms share expertise in project management, quality control and scaling. Moreover, supporting SMEs aligns with Corporate Social Responsibility, boosting local economies and skills development.

For SMEs, these collaborations could unlock access to capital, resources and advanced equipment, along with much-needed access to projects. Mentorship from established firms accelerates their growth and capabilities, while association with reputable corporations builds credibility and wider market access. Partnerships also spread project risk and encourage innovation by pushing SMEs to deliver more sophisticated and larger solutions.

Help from Automate UK

Work done over recent years by trade associations like Automate UK to accelerate automation adoption by acting as advocates and knowledge hubs has paid dividends. Through lobbying government for a robust industrial strategy, automation now forms part of multiple key pillars. We hope as an organisation this engagement will lead to tax incentives for SMEs, R&D and adoption grants, and multi-faceted workforce investment. Automate UK has also made new membership types available to different stakeholders – for example, manufacturing end-users of automation and education providers – to strengthen the ecosystem needed for partnerships to flourish.

Government support

However, challenges must be tackled for partnerships to thrive. Investment hesitancy will only be overcome by stronger government incentives, tax allowances and successful case studies. The skills gap demands more apprenticeships, vocational training and industry-led content in academic programmes. Risk perception can be reduced through best practice sharing and case studies of corporate success stories.

By strategically fostering partnerships, the UK can create a dynamic ecosystem where large corporations and innovative SMEs collectively drive the development and delivery of advanced automation systems, leading to substantial productivity gains and a robust industrial future.

For more information about partnerships and supply chain development, contact Automate UK via the website below or or join us at our conference in November.

www.automate-uk.com