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New research offers digital manufacturing insights
23 June 2025
Rockwell Automation has unveiled the UK findings of its 10th annual State of Smart Manufacturing Report, revealing that the United Kingdom is setting the pace in Europe

THE STUDY, based on feedback from more than 1500 manufacturing leaders globally (13% of which are UK-based), highlights the UK’s striking progress in digital transformation. With 53% of UK manufacturers already implementing machine learning or AI on the factory floor, and an impressive 98% either using or planning to implement generative AI, the country is leading Europe in applied artificial intelligence.
"AI is no longer just an emerging trend for UK manufacturers, it has become the driving force behind their transformation," said Phil Hadfield, managing director at Rockwell Automation at the recent UK report launch. "By combining a human-centric workforce strategy with deliberate digital investment, UK firms are not only embracing innovation but also achieving tangible performance improvements that position them as leaders in the global manufacturing landscape.”
UpskillingAI and generative AI are being deployed in quality control, cybersecurity, training content, and compliance reporting. Already, 15% of UK firms say GenAI delivered the highest ROI of any technology in the past year. Rather than replacing workers, UK manufacturers are using AI to enhance roles and address labour shortages. Thirty-eight percent of UK companies plan to upskill existing talent, up from 30% last year and well ahead of the European average of 30%.
Commenting further on AI, Hadfield said: "It's seen as a solution for labour shortages, skills gap, quality control and generally managing external pressures. We've seen the geopolitical situation around the world being quite dynamic, and industries are increasingly turning to smart technology to counter the slow economic growth and really drive efficiencies."
Mike Loughran, director of intelligent devices and software control for Rockwell in Europe highlighted the fact that many manufacturing businesses are feeling the loss as skilled members of staff come to retirement, and as a consequence are recogising the need to upskill the remaining workforce and the role that AI and smart technologies can have in achieving this. He cited the example of a business in the automative sector, which had previously taken four week to train an operative to perform a particular task. As a result of adopting digital training methods, this has been reduced to around two weeks and staff turnover rate has dropped notably.
Cybersecurity
In the report, cybersecurity has emerged as a foundational priority. With 97% of UK firms already investing or planning to invest in cyber platforms, and 21% citing it as their top ROI driver, businesses are building secure infrastructure before expanding digital services. Thirty-two percent now see cybersecurity as a top external risk, up from 28% last year.
"It's clear that this new technology brings new business risks in the form of cybersecurity, and indeed, cybersecurity now is seen as globally as the number two external risk to businesses. It's recognised by most companies, and they're really racing to strengthen their IT/OT infrastructure and architecture and improve the skill sets within their organisation," said Hadfield.
Expanding further on the increasing invesment in cybersecurity amongst UK businesses, Loughran said: "It's not that they haven't invested before; it's just a continuous investment cycle. They know that you don't just fit and forget, there's a constant battle against it. So the more that they're getting connected – the more they're connecting their facilities, with their customers, with their suppliers – the more they recognise that there is a risk to their business."
Meanwhile, digital twin adoption has jumped from 21% to 37% in just 12 months, with the UK reporting the highest planned adoption rate in Europe. Sustainability strategies also continue to mature, with 89% of manufacturers now operating under formal ESG policies, and 56% citing efficiency, not compliance, as the main driver.
Find the full report at
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