UK digitalisation spend looks to lag

Against this backdrop, I was somewhat perturbed to see that a recent report from Siemens has found that in the UK, a lack of planned investment in digitalisation is potentially putting infrastructure modernisation and decarbonisation at risk.

Titled Digital Transformation, Sustainable Returns: The New Pathway of Infrastructure, the study looked at how 650 senior executives from 13 countries believe digitalisation can be harnessed to accelerate decarbonisation and transform the world’s infrastructure.

The survey revealed that just 38% of UK businesses plan to increase investment in digital technologies over the next year, significantly trailing the global average of 58%. This puts the UK behind countries including Canada (72%), China (70%), Italy (64%), and Germany (54%), in terms of expected digitalisation investment. Siemens warns that limited adoption of digital technologies in infrastructure could further widen the UK’s productivity gap.

Despite slower investment rates, UK businesses recognise the benefits of digitalisation. Respondents highlighted productivity (68%), workforce health and safety (66%), and decarbonisation (64%) as key advantages for their organisations.

Regarding decarbonisation, UK firms identified energy storage technologies (44%), electric vehicle charging networks (34%), and remote sensing and monitoring (34%) as the most impactful innovations for the next three years.

However, depite seemingly understanding concerns over implementation costs (46%) and integration complexity (38%) remain significant barriers to adopting digital business platforms.

The Climate Change Committee has stressed the need for faster progress in decarbonising infrastructure and industry to stay on track for the UK’s 2050 Net Zero targets. With the Government’s industrial strategy forthcoming, Siemens is urging stronger initiatives to drive digital investment and enhance the UK’s global competitiveness.

If the UK fails to invest in digitalisation, its industries risk falling behind global competitors, widening the productivity gap, and struggling with higher operational costs. Without modern technologies, businesses will become less efficient, making the UK a less attractive place for investment; thus potetnially could slowing economic growth, limiting job creation, and hindering innovation.

Outdated infrastructure and legacy systems will also lead to inefficiencies and rising costs, making it harder for UK firms to compete internationally. Addtionally, without digital advancements, the UK may struggle to meet its 2050 Net Zero targets, missing key sustainability goals and facing regulatory challenges.

As is so often the case, it's not a question of whether businesses can afford to invest, it's whether they can afford not to.

Charlotte Stonestreet

Editor