HOW DO you check the quality of 4000 rusk slices leaving a 200-meter-long oven line on a four-meter-wide conveyor belt every minute? You employ a staff of five, each with a keen eye and quick reactions who, for example, sort out slices that are too dark or lying on top of each other. That's how Bolletje in Almelo, Netherlands, did it for many years.

Or you can use a compact robot cell consisting of a camera, a four-axis Stäubli robot, and an AI-based IT platform – a concept that Bolletje has been using for several months now.

“We supply retail chains and are under high price and competitive pressures. At the same time, as a premium manufacturer, we set high quality standards for our products, and so do consumers. We can achieve both goals by automating inspection at the end of the oven line,” says Lo Huls, COO of Bolletje.

The company made contact with the solution’s supplier at a food industry event. As Lo Huls explains: “A colleague reported on a presentation about a very powerful product inspection system that uses robotics and vision AI, and suggested we take a closer look. QING Food Automation then presented this concept to us here, and we implemented it on one of our 15 oven lines.”

Compact and lean concept

One of the special features of this solution is that it can be deployed in a very small space. The cell occupies an area of just 1.8 m x 3.2m. The rusk slices are captured by a camera, the images are evaluated within milliseconds, and the Stäubli robot places the N.i.O. rusks on belts running to the right and left of the main conveyor belt. After a further conveyor section, the rusks are immediately packaged in the typical 140g units.

The compactness of the cell not only has the advantage of being easily integrated into existing lines, but as Lo Huls points out: “We can, and will, dismantle the system very quickly if necessary and install it on another oven line if, for example, the reject rate is higher there.”

What QING Food Automation has achieved here is already widespread in other industries, such as metal processing. Why not in food production? According to Bram de Vrught, managing director at QING, “In the food industry, and not only in industrial bakeries, we see a lot of variation. Each individual product is unique. This is why human labour predominates: staff who check the quality, manipulate, or sort. Automation is challenging, even more so today, as batch sizes become smaller. For this kind of application, we developed a robot-based food automation system with AI as an enabler.” 

Data captured and analysed

Data from the 100% inspection is analysed comprehensively. Lo Huls: “We record the type of irregularity and compare it with the plant data. This task is performed by our data analytics tool, which monitors all ovens and other process steps. This enables us to find the causes of quality defects and take countermeasures.”

Bram de Vrught explains how this works in practice: “The system makes the images, shifts them to the STAQ platform, and classifies the products and different defects. You see the results directly on the line and on your laptop. Based on them, we can train the AI. All in all, this system is very user-friendly, so companies can deploy it themselves and also scale the technology to other products or to new quality criteria.”

From the start of developing STAQ, which processes the image data, QING opted for four-axis Stäubli robots. “We always ask: What is the best solution for the specific task? In the case of handling, there are many factors to take into account: environment, accuracy, flexibility, and lifetime,” says Bram de Vrught. “A delta robot needs more space, so we would need a bigger frame. We wanted a compact system, but we also needed high speed. A very fast SCARA robot like the Stäubli TS2-80 performs best under these conditions.“

It goes without saying that the TS2-80 is available in an “HE” version, designed for high hygienic standards and regular cleaning with water and detergents, and that food-grade oil (H1) is used. In partnership with Stäubli, QING simulated and enhanced the robot’s performance. “Originally, we specced the system for 60 picks a minute, and in the test, we got a minimum of 80 slices that can be gripped and deposited on the N.i.O. conveyor belt. For this purpose, we designed a custom needle gripper,” says Bram de Vrught.

Using Stäubli’s VALtrack software proved advantageous here. It coordinates the robot’s movements with those of the conveyor belt, meeting an important prerequisite for the fast and precise gripping of rusks that are rejected. “We have integrated VALtrack into our STAQ framework,” Bram de Vrught adds.

The reason why the performance of the robot plays such an important role is obvious: “We could have engineered a system with two robots. But that would nearly double the price and space requirements, and due to the coordination of the robots, programming costs would more than double. Improving performance is a better business case. And the TS2-80 is still working in a green area [within its design limits], so we can expect a long lifetime with a minimum of service even in 24/7 mode.”

www.staubli.com

THE GLOBAL skills shortage, especially in key areas such as engineering, is well established. From critical infrastructure, including power and rail, to manufacturing, industries are wrestling with an ageing workforce, increasingly dated expertise and escalating compliance demands. Innovation is now imperative.

Technologies including Artificial Intelligence (AI) and Extended Reality (XR), are not only key to improving skill sets, enabling real-time collaboration and transforming engagement with the next generation, they are vital in transforming downtime into rapid asset recovery. Digital twinning is the foundation for transforming operational insight and responsiveness. These technologies are being advocated by both governments and the c-suite. They are also avidly embraced by the next generation looking for a more exciting workplace experience. With the right approach, organisations can quickly create an environment where skills are transferable, operational requirements are immediately understood and individuals can undertake any task, anywhere, at any time.

Productivity opportunity

The predicted shortfall of one million engineers by 2030 across the UK is a concern, threatening major infrastructure projects, such as HS2 as well as crucial infrastructure such as hospitals and utilities. Young, talented individuals are not attracted to industries still reliant upon dated technologies and dull career paths. They want and expect to use innovative technologies and have the chance to build skills in more than one job role. They are comfortable with AI and XR and relish the chance to collaborate virtually with AI avatars to get the job done.

At a top level in both government and business, leaders also want change. They are asking for innovation. They are demanding investment in digital transformation and AI. Indeed, the Government’s Industrial Strategy 2025 commits to ‘scaling up innovation and automation, with increased deployment of state-of-the-art technologies, industrial robotics, AI, digital twins and Internet of Things.’ Digital twinning will improve understanding of system performance against operational parameters and provide essential insight into day-to-day activity, delivering the next level of future proofing key for critical infrastructure. Furthermore, there are clear opportunities to embed augmented technology, including Extended Reality and AI, within every step of the RIBA Plan of Work, which provides a clear process for designing, constructing, operating and decommissioning building projects.  

Transforming operations

The foundations are in place. It is now imperative to evolve from a commitment to innovate and achieve tangible change. Training and career development is a vital step to improve the motivation and engagement of young talented individuals. Replacing outdated processes and archaic technology with AI and XR can quickly transform the engagement with digital natives, improving both performance and employee attraction and retention.

Bringing AI and XR together in day-to-day operations, has the potential to transform immediate operational productivity and, critically, create vital engagement with the next generation of engineers. Rather than the tortuous process of decoding fault messages or trawling through lengthy manuals, an AI-XR system can pinpoint the issue immediately for engineers. It can also suggest a fix and guide them through the repair with clear, visual step-by-step instructions. In sectors such as rail, nuclear, defence and aerospace, where every minute matters, speed and clarity can make a real difference by significantly reducing downtime.

What makes this approach particularly effective is the role of AI avatars as co-workers rather than replacements. Acting as collaborative assistants, AI avatars help to bridge the gap between training, maintenance and operations, areas that have traditionally been siloed and handled in isolation. By linking immersive learning with real-time operational data, the technology creates a continuous flow of knowledge that supports teams in any environment.

The shared visualisations enabled by augmented technologies completely change the learning experience. Individuals able to walk around, view and interact together gain enormous benefit from peer-to-peer experiences. They not only learn more quickly and gain confidence in embracing new tasks but also collaborate effectively to deliver tangible operational gains.

Future proofing

By supporting human expertise rather than competing with it, AI-XR helps to unlock corporate knowledge, enabling anyone to access the insight they need, exactly when they need it. These technologies allow individuals to embrace a diverse skill set, moving away from the traditional constraints of single role expertise, thus broadening the appeal to a younger generation.

Combining digital twins with AI-XR adds further benefits. Predictive maintenance alerts, real-time data visualisation, and holographic overlays enable early problem spotting, easing supply chain pressures and providing decision makers with continuous insight. The result is faster recovery, less disruption and greater resilience across critical infrastructure.

Looking ahead, the convergence of spatial computing, digital twins, and AI points to a future where complex processes are made simple and intuitive for those on the ground. By turning information into intelligent, spatial experiences, organisations can streamline efficiency, cut downtime and improve safety, empowering people to understand and operate entire systems, and not just individual components. 

Change is happening

The government is encouraging digital innovation. The c-suite increasingly recognises the power of new technologies to drive change. And, critically, a new generation of digital natives excited by AI and XR technologies is poised to replace the ageing and retiring workforce. This generation will have a new way of working, leveraging technology to do any role and work more efficiently, anywhere, anytime.

Organisations that commit to transformational change will gain both immediate improvement and create a foundation for long term success. Committing to digital transformation, including AI, XR and digital twinning, will not only improve productivity; it will also underpin sustainability goals, drive down costs and improve the essential recruitment and retention of digital natives.

Philip Pauley is CEO of PAULEY

pauley.co.uk

When handling bulky components like side-impact beams, precision and reliability are paramount. These long metal parts must be fed into automated cells repeatedly and with exact positioning, all within a compact footprint that aligns with existing factory space and workflow demands.

In this real-world example, two bespoke conveyor systems from the mk range were expertly configured to deliver a seamless solution. An SPU 2040 accumulating chain conveyor provides cycled delivery and buffering of up to twelve components, reducing reliance on manual intervention and keeping processes running autonomously. Meanwhile, a ZRF-P dual-lane timing belt conveyor completes the material flow with accuracy and consistency.

The clever use of modular mk technology ensures the system is not only space-efficient but also adaptable for future needs, all critical factors for manufacturers focused on long-term agility.

Whether you’re evaluating robotic integration or updating legacy equipment, this case study reveals practical insights into designing conveyor systems that improve throughput, reliability and overall operational efficiency.

AdaptTech is the sole UK and Ireland supplier of the UK conveyor range so get in touch to find out how they can help you achieve your manufacturing solution.

Read the full case study and discover how this solution works in detail at: adapt-tech.co.uk/conveying-car-parts/

AdaptTech is the sole distributor for mk conveyors in the UK and Ireland. Visit the company website now to find out more and to download a free brochure.

adapt-tech.co.uk

This collaboration expands Advantech's AI chipset ecosystem and introduces the company's first AI acceleration solution powered by DEEPX technology, the EAI-1961 series Edge AI Acceleration Module.

“Advantech evaluates a broad range of AI chip technologies to address diverse industrial needs,” said Joey Hsu, director of Advantech’s Embedded Sector. “DEEPX demonstrates commendable efficiency in power and thermal performance, which is essential for reliable edge AI deployment. By integrating DEEPX’s energy-efficient NPU with Advantech’s industrial hardware expertise, we aim to offer more optimized AI solutions for next-generation edge systems.”

The newly launched EAI-1961 series is Advantech's first product featuring DEEPX's DX-M1 NPU technology. Designed in the industry-standard M.2 form factor, the module delivers up to 25 TOPS of AI inference while supporting up to 4GB of LPDDR5 memory. Its highly energy-efficient architecture ensures stable thermal behavior even during heavy workloads, making it well suited for vision-centric applications such as robotic vision, intelligent surveillance, in-vehicle computing, and precision medical diagnostics.

"Advantech is the undisputed leader shaping the global industrial automation and embedded computing ecosystem," said DEEPX CEO Lokwon Kim. "This collaboration marks a defining moment for DEEPX as our technology moves toward becoming a global industrial standard. By leveraging Advantech's unparalleled worldwide network, we are ready to showcase the strength and competitiveness of DEEPX's AI chips on the global stage. The integration of our DX-M1 NPU into Advantech's platforms will empower customers with unprecedented AI performance and efficiency, enabling smarter, faster, and more sustainable edge applications."

By adding DEEPX to its expanding roster of AI technology partners, including Intel, Qualcomm, NVIDIA, Hailo, and Axelera AI, Advantech continues to deliver one of the industry’s most comprehensive portfolios of edge AI solutions. As edge AI becomes increasingly critical for applications such as predictive maintenance, quality inspection, real-time situational awareness, and adaptive robotic control, Advantech remains dedicated to providing ready-to-deploy platforms that help customers implement scalable, production-ready edge AI with confidence.

www.advantech.com

ON THE London Metal Exchange (LME), copper reached record territory in early January 2026, pushing above $13,300 per tonne. That’s more than 20 per cent higher than the late 2025 average as stock tightness and strong industrial demand combined.

That matters because copper isn’t just a metal you read about in commodity news. It’s used extensively in printed circuit boards, internal connectors and wiring, as well as across many power and signal paths in electronics. As a result, movements in copper pricing directly influence the cost of the boards and assemblies engineers design and build.

Precious metals are also impacting pricing dynamics. Gold recently surged above $5,000 per ounce, reaching a series of record highs in the first few weeks of 2026 amid market volatility and safe-haven demand. While gold isn’t in every bill of materials, it’s used in contact plating and specialist components where performance meets reliability.

Likewise, aluminium has traded firmly above $3,000 per tonne on global benchmarks and is forecast to remain well supported given current market dynamics. Even when commodity analysts suggest prices might ease later in the year, the near-term story is volatility, which introduces risk.

When inputs move

Engineers regularly buy copper foil, laminates and boards priced off copper’s movement. Over 2025 and into 2026, manufacturers of copper-clad laminate – the base material for almost all FR-4 boards – began issuing public price adjustments directly linked to rising raw materials.

Some supplier notices describe increases of up to 30 per cent across all thicknesses of copper-clad laminate and prepreg, driven by higher copper prices, glass cloth costs and processing expenses.

This is the kind of upstream movement that doesn’t stay upstream. It filters through every layer of a PCB quotation, especially in multi-layer designs where copper and prepreg content is higher.

The wider passive component landscape tells a similar story. Industry analysis shows price increases across capacitors, inductors, ferrite beads and related passives. These range from single digit to double-digit percentages for early 2026 deliveries, often citing metals and process cost inflation among the drivers.

This doesn’t mean you should panic buy every part in your current bill of materials (BOM). However, it does mean that the old “wait-and-see” strategy is getting riskier, particularly if you’re dependent on a single branded source for key sections of your design.

Alternative sourcing

Second sourcing is moving back into focus, not as a cost-cutting exercise but as a form of risk management. Pin-for-pin alternatives, for instance, allow engineering teams to maintain electrical and mechanical compatibility while reducing dependence on individual manufacturers, whose pricing or lead times may be more exposed to raw material volatility.

This approach is particularly effective for widely used regulators, discretes, interface devices and passives, where functional equivalence is well understood and validation cycles are manageable. As volatility increases, having approved alternatives already mapped can significantly reduce disruption when prices shift or allocations appear.

When suppliers combine local stock with extended inventory and effective cross-reference tools, response times improve. During a time of uncertain input costs, that flexibility is as valuable as unit price, provided performance remains consistent.

Prices might ease at some point, but it’s difficult to predict when. Volatility isn’t going away, and when raw material costs feed into electronics pricing, it’s the teams that design and source with flexibility in mind that are better positioned to respond when conditions change.

Chris Withers is sales director at Zel Components

zelcomponents.co.uk/

The enhanced FANUC connector driver expands robot-to-machine interfacing interoperability, real-time robot awareness, and secure bi-directional control across automated production environments and advanced robotic workcells.
 
The updated FANUC transformer is available now as part of the Flexxbotics open-source repository, released under the permissive Apache 2.0 license, at:
github.com/Flexxbotics/transformers

Industrial robots are central to modern manufacturing, however, interfacing between robot controllers and the many different protocols used in factory machines, safety systems, inspection & test equipment, and other plant assets remains a complicated, custom project.

Now with the updated connector driver, Flexxbotics further modernises robot connectivity by enabling FANUC robots to communicate in a standardised way with over 1000 makes and models of factory equipment using a software-defined automation (SDA) runtime designed for scalable, many-to-many interoperability.

Flexxbotics updated connector driver enables the full line of FANUC industrial robots and collaborative robots with expanded capabilities including:

• Standardised interoperability of FANUC robots across both open industrial protocols and vendor-specific proprietary interfaces
• Secure bi-directional read/write execution for closed-loop robotic cell automation
• Additional real-time robot awareness of the operational states and process variables of factory machines and equipment
• High-frequency, parallelised data pipelines capture more data including robot speeds, force, torque, cycle, performance, and other telemetry

“Robotic automation has historically required custom point-to-point integration in every workcell and process,” said Tyler Modelski, CTO and co-founder of Flexxbotics. “By further extending our FANUC industrial robot transformer, we’re making connectivity with plant machines and equipment standardised and many-to-many which enables robotics to scale securely across factories.”

With Flexxbotics the FANUC connector driver interoperates with all the plant equipment connected to the runtime - robots can communicate directly with different brands of PLCs, factory machines, safety systems, inspection equipment, cameras, probes, sensors, and others across all endpoints regardless of their protocols.

Each new machine added inherits compatibility across the entire automation environment, eliminating custom point-to-point robot integrations and enabling many-to-many bi-directional communication across heterogeneous factory assets.

Using asynchronous, multi-threaded controls, the FANUC transformer aggregates and contextualises robotic data in real time to support advanced orchestration, closed-loop control, and granular data collection for Physical AI training and inference.

The updated FANUC transformer supports a wide range of automation applications and direct KAREL programming, including:

• Robotic application interoperable cell control logic and process execution
• Automated production digital thread traceability for regulatory compliance
• Robot cluster orchestration and first-fault identification
• Advanced robotic machine tending and material handling
• Closed-loop autonomous process control with real-time processing adjustments
• Robotic synchronisation with manual operations and assembly on production lines
• Automated job changeovers and intelligent recovery enablement
• Multi-modal data acquisition for Physical AI and Industrial AI training.

Parallelised data pipelines make the FANUC transformer ideal for ingesting real-time robotic motion and process data while maintaining deterministic automation behaviour.

The updated FANUC industrial robot connector driver is released as open-source software under the Apache 2.0 license on Flexxbotics’ GitHub project. Automation engineers and integrators can extend the robot interface, build custom automation logic in Python, and deploy commercially with no contribution requirements.

Flexxbotics continues to encourage community feedback and contributions to expand robotic interoperability across additional controllers and automation applications.

“Open interoperability is essential for scaling robotics beyond isolated workcells,” noted Tyler Bouchard, CEO & Co-Founder of Flexxbotics. “By providing our FANUC connector driver as open source, we’re giving manufacturers a production-ready foundation for building truly autonomous robotic factories.”

flexxbotics.com
 

BUSINESSES TODAY are under increasing pressure to reduce waste, improve efficiency, cut costs, and operate sustainably. Nowhere is this more critical than in the packaging sector, where millions of parcels leave warehouses daily, often half-empty and filled with unnecessary air and filler materials. This inefficiency leads to wasted carton material, inflated shipping costs, and excessive carbon emissions, highlighting a clear need for change.

With a vision to design a fully automated system capable of resizing every carton to match the true size of its contents, Opitz Packaging Systems, a German-based packaging OEM, partnered with IMI’s Industrial Automation team to create an award-winning, high-performance motion system that is, today, delivering precision, speed and flexibility across multiple packaging functions.

The actuator-driven solution

In an engineering partnership, Opitz and IMI’s Industrial Automation sector designed the desired motion architecture to include multiple actuator series as part of one fully integrated, high dynamic system

The IMI Bahr modular linear actuator platform serves as the foundation of the patented carton volume reducer system, seamlessly integrating IMI Bahr actuators at every stage of the innovative packaging process.

These include supporting the cutting and upper closure function for dust-free carton cutting and flap folding.

Tape is applied to individual parcels with precision and speed, followed by parallel actuator systems that ensure a smooth carton flow across various formats. Finally, actuators enable precise glue application to guarantee secure parcel sealing in readiness for warehouse dispatch.

“Our collaboration with Opitz exemplifies how engineering innovation can address real-world challenges,” said Cihan Halavurt, general management for IMI Bahr products. “By integrating our high-performance motion systems, we’ve created a solution that reduces waste, lowers carbon emissions, and enhances efficiency for the packaging industry.”

Benefits all round

As a result of the innovative motion system, Opitz has seen a raft of efficiency and sustainability benefits. There is now up to 85% less air per package, alongside a reduced carton filler material and carbon emission footprint.  Operational efficiencies have surged with multi-format cartons capable of being processed through one high speed, accurate and reliable automated system.

Florens Fuchs, head of procurement, Opitz Packaging Systems, said. “This partnership has allowed us to bring our vision of a right-size packaging solution to life. The results speak for themselves—up to 85% less air per package, reduced filler materials, and a significant reduction in CO₂ emissions. We’re delighted to have set a new standard for sustainable packaging.”

Such has been the industry impact of the Opitz motion system it was recognised by the German Packaging Institute and won a German National Innovation Award for the automated “right-size packaging solution”.  It was recognised for its sustainability contribution by reducing packaging waste and CO₂ emissions.

www.imiplc.com/industrial-automation

ELECTRIC MOTORS account for a significant share of industrial power consumption, making them a major contributor to both operating costs and environmental impact. While buying a motor is a one-time expense, it represents less than two per cent of the total cost of ownership (TCO), meaning that the other 98% consists almost entirely of energy usage.

What running costs can tell you

Understanding a motor’s consumption offers financial and operational advantages. Regular monitoring is essential — without it, reducing energy use is nearly impossible. Tracking consumption not only shows where costs come from but also creates a baseline to spot changes.

The data can also highlight issues that might otherwise be undetected. For example, if a motor consumes 50kW one week and 75kW the next, that variation may reflect a problem on the line, a motor that is over or undersized, or even a difference in power consumption between processes or products on a production line. This can affect product pricing, margins and maintenance planning. Recording trends and fluctuations in motor running costs can provide helpful insights to put strategies in place to improve overall operation efficiency and positively impact the bottom line. 

Calculating the cost

Motor running costs are primarily dictated by electricity prices, the power rating of the motor and its annual running hours. It is also important to remember when choosing a motor that its rated power tells you how much mechanical output it can deliver, not how much electricity it consumes. For example, a 7.5 kW motor can always provide 7.5kW of mechanical power, but the amount it draws from the power supply depends on its efficiency. A less efficient motor will absorb more input power to deliver the same output, while a high-efficiency motor achieves the same output using less energy. This means that not all the power taken from the grid is always used productively.

Motor running costs are directly linked to power along with several other parameters. This information can be found on the motor nameplate or manual. Modern energy meters also offer convenient way to measure energy usage, and this data can be used to work out the running cost of a motor.

First, calculate the energy usage in kWh by multiplying the annual operating time by the rated power of the motor. Losses can be calculated using its efficiency rating, and this combined with the energy use gives the total chargeable kWh. When this is multiplied by the tariff a business pays per kWh, this gives the total annual motor running costs. For example, a 45 kW IE3 motor running continuously (8760 hours) at €0.28/kWh could cost over €40,000 per year. 

Cost cutting strategies

Once businesses understand how their motors are performing, there are several ways to reduce energy use and operating costs. Consulting with an expert to evaluate the entire system is a helpful first step to identify opportunities to improve operational efficiency. One of the most commonly used strategies is smarter control. It is important to remember that overall, the best energy you will save is the energy you don’t use. By fitting variable speed drives (VSDs), motors can run at the speed the application requires and even a small reduction in speed can deliver large energy savings. 

Correct sizing and careful selection also play a crucial role. A motor that meets the actual demands of the application will operate closer to full load, improving both efficiency and power factor. Beyond the motor itself, evaluating other plant equipment is important. Worm gear units, for example, may operate at efficiencies as low as 45%, while switching to a bevel-helical unit can increase efficiencies to around 90% significantly cutting wastage. 

Maintenance also matters. While motors are often quite low-maintenance, the machinery they drive may require more frequent intervention. Worn or seized components can force motors to work harder, drawing more current than necessary. 

Finally, minor adjustments such as switching equipment off when not needed can offer easy savings without major investment or disruption. Together, these strategies show that savings often come from a combination of smarter choices across motors, drives and the wider plant rather than a single change.

An efficiency success story

An example of just how effective a holistic approach can be seen in an industrial exhaust fan project. The objective was to improve flow control of the vacuum level in a dryer while reducing overall energy consumption. Fitting a VSD allowed more precise control of the fan, with its speed adjusted according to the pressure requirements. 

Technidrive also downsized the motor to 110kW and upgraded it to an IE4 model. The results were measured across a week of production and the data showed significant improvements. 

Energy costs were reduced by 22% on a weekly comparison, and energy consumption per tonne of material fell by 19%. Comparing hourly operation, the fan consumed 38% less energy, even though it ran for 26% longer, delivering more than €30,500 in annual savings and cutting CO₂ emissions by 757 kilograms per year.

The bigger picture

Calculating motor running costs is an important step for any operation to manage its energy use, reduce expenses and meet sustainability goals. This allows companies to make informed decisions on investment priorities and identify where improvements can be made using valuable insights into where energy is going. 

However, some of the biggest opportunities lie beyond the motor. Poor system design, inefficient equipment or insufficient control can all drive up costs, and evaluating the entire operation can highlight the true savings potential. By combining accurate cost calculations with a holistic view of systems and processes, businesses can achieve meaningful reductions in both costs and energy consumption. 

David Strain is technical director at Technidrive

www.technidrive.co.uk

The Economic and Social Research Council funded project called ‘Understanding how servitization can impact UK economic productivity and environmental performance’ has been carried out by leading academics from Aston Business School, the University of Warwick and Lancaster University.  

The findings have been published in a report called DESIGN, MAKE & SERVE: The Big Business Case for Servitization aimed at helping businesses realise the economic and environmental benefits of adopting a service-led model.  

The report lands at a pivotal moment for UK manufacturing and shows that after decades of global industrial shift, rising competitive pressure, and growing sustainability demands, the evidence now provides the strongest UK-specific case for accelerating servitization.  

It reveals that service-led, digitally enabled business models not only meet today’s commercial realities but are also one of the most powerful levers available to deliver the government’s productivity ambitions set out in its industrial strategy, helping manufacturers raise productivity, strengthen supply-chain resilience, and compete globally. 

It is also timely because UK manufacturers are under pressure to adapt, and for the first time, business and policy leaders now have rigorous, long-term UK data showing why shifting toward services delivers commercial, productivity, and environmental gains.  

Servitization is the process of innovating an industrial firm’s business model to compete through services, rather than relying solely on products. It involves integrating products with services, in various combinations, in order to provide outcomes to the customer. 

The evidence presented in the report confirms that service-led strategies are delivering measurable financial gains for businesses. For every small shift (one percentage-point increase) in the share of revenue earned from services rather than products, firms experience over 2% total revenue growth, almost 2% profit growth. 

It shows that even a modest rise in a company’s “servitization intensity”, such as shifting just a few percent of revenue toward services or upgrading a small part of existing service work into more advanced offerings, is linked to major performance gains.  

Firms making this shift typically see almost 8% higher profits and over 5% growth in productivity. These improvements come from companies using their people, technology, and equipment more effectively as they move toward service-led business models.  

In the UK, there has been an erosion of high-value industrial capability, export capacity, and supply-chain resilience. Researchers believe that if this trend continues unchecked, as much as a further 3-4% of GDP could be at risk over the next decade. 

The report comes against the backdrop of some 20% of manufacturing leaving the UK to China and elsewhere. 

Professor of operations strategy at Aston University and the co-founder and executive director of the advanced services group, Tim Baines, said: “Manufacturing has been steadily declining in recent years and productivity in the UK is very low. This report shows that servitization can add value to businesses and create a change in future prosperity. 

“We know that digital technologies such as AI offer powerful new tools, but without commercial models to capture their value, they risk becoming another transient advantage.  

“Servitization changes the game. It monetises AI and digital technologies, deepens customer relationships, builds recurring revenue, enables the circular economy, and shifts competition from price to value in use. However, realising this potential will require more than isolated initiatives or gradual change. Incremental adoption will be too slow to capture the opportunity.  

“The risk of inaction is greater still. Servitization is amongst the strongest levers available to UK manufacturers. With the right leadership and support, it can position the UK as a global leader in industrial services – and secure a resilient, competitive future.” 

Professor of Digital strategy and services innovation at Lancaster University, Dr Andreas Schroeder, said: “High-quality products and specialist industrial expertise are among the UK’s greatest strengths, but in a product-only market they don’t always translate into fair reward. Servitization unlocks that value. It enables manufacturers to wrap services, advice and performance commitments around their products—rewarding quality, driving customer loyalty, and creating high-skill jobs in the process.” 

The study was based on a UK-wide survey of manufacturing companies in sectors like automotive, aerospace, and machinery. 

Further information can be found here:

‘Understanding how servitization can impact UK economic productivity and environmental performance’ can be viewed at www.advancedservicesgroup.co.uk/resources/white-papers/the-big-business-case-for-servitization/

The government’s industrial strategy can be viewed at www.gov.uk/government/publications/industrial-strategy
​

The second SME Snapshot Survey, open from 26 January 2026 to 6 February 2026, is Enginuity’s biannual research initiative designed to capture the real-world pressures and opportunities facing UK engineering and manufacturing SMEs – the crucial driving force which will determine economic growth. 

The findings will provide evidence to inform national skills policy, workforce development, and industrial strategy, ensuring SME voices are reflected in decisions that shape the future of the sector. 

What is the SME Snapshot? 

The SME Snapshot is Enginuity’s flagship survey and insight report, exploring how engineering and manufacturing SMEs are responding to economic conditions and policy developments. It examines workforce availability, skills needs, labour and operational costs, business confidence, and future investment plans. 

By gathering insights directly from employers, the SME Snapshot helps policymakers, industry bodies, and investors better understand not only the challenges SMEs face but also how best to support their role in driving UK productivity, innovation, and growth. 

Why SME voices matter 

SMEs are the backbone of UK manufacturing, accounting for over 90% of the sector, yet they are often underrepresented in national conversations around skills, competitiveness, and economic growth. 

The SME Snapshot exists to close that gap, ensuring decision-makers hear directly from the businesses that underpin the UK’s engineering and manufacturing supply chains. 

The first SME Snapshot, published in July 2025, represented 135 employers, 6500 employees, and £1.1b in combined sales.

Key findings revealed: 

• Only 15% of SMEs view the UK labour market as attractive 
• 80% faced difficulties recruiting suitable staff 
• 89% identified labour costs as a major driver of price pressures 
• Despite challenges, 38% remained optimistic about the year ahead 
• 72% planned to maintain or increase investment in training 
• Real impact on policy and industry.

The inaugural SME Snapshot gained significant national traction, with coverage across 62 publications and an estimated reach of 8.9 million readers in local and sector-specific press. The findings were used to support direct engagement with HM Treasury, the Department for Business and Trade, Skills England, and the Department for Education, and helped shape national discussions on skills reform, workforce development, and industrial strategy

Policy Centre for Supply Chain and SMEs 

Feedback from SMEs and partners following the first Snapshot directly informed the launch of Enginuity’s new Policy Centre for Supply Chain and SMEs. 

The independent Policy Centre brings together industry, policymakers, and sector bodies to collaborate on the skills and policy priorities needed to build a resilient, competitive engineering and manufacturing supply chain. 

By acting as an independent arbiter, the Policy Centre ensures SME insights are clearly communicated to decision-makers, helping to close critical skills gaps across the UK. 

Why support the SME Snapshot  

With major changes ahead, including the Spring Budget, reforms to the post-16 education and skills system, and apprenticeship assessment reforms, it has never been more important that SME experiences inform national decision-making. 

By sharing the SME Snapshot Survey with networks and stakeholders, supporters can help ensure that policy and strategy are grounded in the realities of the businesses they impact most. 

Nicola Dolan, associate director of charity impact and operations at Enginuity, said: “The SME Snapshot gives engineering and manufacturing SMEs the chance to have their say and make their voices heard. Through the Policy Centre, we take their experiences and challenges straight to government, ensuring SMEs speak with a strong, unified voice. 

“By taking part in the survey, SMEs help shape policies and skills strategies that reflect their realities, while also contributing to practical solutions that support growth, resilience, and long-term success across the sector. One strong voice, one clear message – resulting in real impact.” 

The Enginuity SME Snapshot Survey is open from Monday, 26 January 2026, until Friday, 6 February 2026. SMEs can take part in the survey at:

www.surveymonkey.com/r/SnapGeneral