UK manufacturers turn to automation to boost domestic capacity amid trade uncertainty

The company reports a 30% year-on-year increase in automation opportunity assessments in Q1 2025, highlighting a strategic shift as manufacturers respond to trade barriers, supply chain disruptions, and persistent workforce challenges.

This trend coincides with recent research showing UK companies plan to invest £650 billion in reshoring initiatives over the next three years, driven by concerns over recent tariffs and supply chain vulnerabilities.

Workforce challenges drive automation adoption

The surge in automation assessments comes as manufacturers face significant workforce constraints. With the combined cost of salary and National Insurance Contributions for full-time workers on the living wage increasing by 44% since 2021 according to Oxford Economics, companies are looking to make the most of their existing talent through automation.

"What we're seeing is that companies have to be pragmatic about the reality of today's labor market," said Søren Peters, Co-CEO and founder of HowToRobot. "With persistent workforce shortages and growing costs, businesses are focusing on how their current employees can create more value through automation rather than trying to fill positions that consistently remain vacant or changing hands."

UK's automation gap presents significant opportunity

The UK currently lags behind similar economies in manufacturing automation, with just 119 robots per 10,000 manufacturing employees compared to the global average of 162 and Germany's 429, according to the International Federation of Robotics. This automation gap represents a substantial opportunity for productivity improvements.

"Many UK manufacturers are discovering significant untapped potential within their existing operations," added Peters. "Our assessments frequently identify automation opportunities that can increase capacity substantially without expanding physical footprint or headcount.”

Low-risk, high-return opportunities take priority

HowToRobot reports that manufacturers are primarily seeking automation solutions that can be implemented with minimal disruption and rapid returns. The most successful projects typically focus on supporting processes such as material handling, packaging, palletizing, and quality inspection rather than completely overhauling core production.

"The current economic climate has shifted the automation conversation from 'futuristic moonshots' to practical, proven solutions with clear ROI," said Peters. "Our discovery assessments help companies quickly identify and separate the high-value, low-risk opportunities from potentially disruptive implementations, enabling manufacturers to take confident action even amid economic uncertainty."

As supply chain challenges and reshoring trends continue, HowToRobot expects the demand for targeted automation assessments to grow throughout 2025.

Meet HowToRobot at Automation UK

HowToRobot's team of automation experts will be present at Automation UK (stand D84) in Coventry on May 7-8, 2025, to provide guidance to manufacturers exploring automation options. They will also present insights on "What Separates Automation Success from Failure" at 1:30 p.m. at Automation Theatre 2.

www.howtorobot.com