FEATURE Smart factories & software
PUTTING IN A SHIFT TO SUCCEED
There needs to be a fundamental shift in approach as to how products are made, powered and managed during manufacturing’s transitional era, says Toby Mankertz, Manufacturing Industry Director at Columbus UK
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anufacturing has entered an era where uncertainty is the only constant. Digital systems are exposing hidden inefficiencies,
sustainability has become both an operational and financial imperative, and technology is advancing faster than many organisations can absorb. What was once “future thinking” is now the baseline for competitiveness. Smarter factory transformations will require new structures, behaviours and data foundations, along with the willingness to replace legacy processes. The UK manufacturing market is forecast to expand 12.0% by 2033, which represents a change in gear for the sector when compared with growth of 8.6% over the past ten years. The industry is entering a decisive transition, driven not by a single breakthrough but by the convergence of data, AI, sustainability, connectivity and workforce capability. Smart factories, supported by humans, data and automation working together, will be the real winners in an uncertain future. There are five defining shifts in how businesses approach data, connected value chains, AI, sustainability and skills – and it’s up to manufacturers to master them all to place themselves in a strong competitive position.
Shift 1 – The data-driven push A fully automated factory is only as resilient as the intelligence and data that guide it. The real shift is not towards full replacement, but orchestration. Future systems must support rapid intervention, human oversight and mixed-mode workflows where people and software agents collaborate. Yet currently, 42% of manufacturers report difficulty sharing data between teams and even more struggle to even access internal data across functions. Smart factories of the future will be those built on standardisation and technology that amplify human judgement. Investment in clean data for instance, will be key to reduce errors, reveal what actually happens during downtime events and prepare the organisation for technology adoptions. While manufacturers that create data governance committees can establish reliability and align stakeholders around a single source of truth, so that data drives action and enables faster, more confident decision-making. Shift 2 – Scalability as the missing link
20 May 2026 | Automation
The next three to five years will reward organisations that build strong data foundations, re-examine their processes, invest in their people and adopt technology with clear purpose
in connected value chains
As supply and value chains become fully connected, every product, batch and shipment will generate data that must be collected, structured, understood and shared securely across suppliers, logistics partners, regulators and consumers. Physical goods will behave like digital assets, with every item carrying a digital identity that follows it from raw materials to end-of-life reuse. Scalability will become the new definition of security as billions of data points will need to move reliably and in real time. Interoperability will be a defining capability to build adaptable value chains. This is where organisations will require systems that can “speak the same data language,” using global standards such as GS1, so information can move securely across suppliers, logistics partners and regulators. Manufacturers that thrive will be those building flexible, scalable systems that allow trusted data to flow through the value chain, enabling them to respond faster, collaborate more effectively and unlock new business models rooted in transparency and shared insight. Shift 3 – Get on the right side of the AI
divide The real opportunity of AI lies in
re-engineering whole processes around what AI makes possible, rather than digitising yesterday’s logic. In the short term, manufacturers can add intelligence to what already exists, such as using computer vision to spot defects on production lines at speed rather than relying on manual inspection. The longer-term shift is to put intelligence into the machinery that builds everything else. The real advantage will lie with manufacturers whose facilities can be reconfigured to produce new products, from cars to humanoid robots to things we have not yet imagined, without
rebuilding from scratch. In this way, factories will become platforms, not just plants. AI will amplify human capability and help teams see more, test faster and act with confidence as conditions change.
Shift 4 – The green imperative Over the next few years, the real question will be not whether sustainability competes with productivity, but whether leaders are willing to treat it as the next productivity revolution – one where digital tools and data help reveal invisible waste, and where better environmental performance and better economics are finally aligned. Double-digit reductions are available to most factories in their first year of serious effort, whether in energy, water or materials. For instance, manufacturers can open up opportunities in longer product lifetimes, repair, reuse and remanufacturing. Lean practices and a culture of continuous improvement will be key in this shift. Shift 5 – Bridging the skills gap Long-term vacancies in the UK
manufacturing sector cost the economy £6bn in lost output each year. An ageing workforce, too few young people entering the workforce, and too many women and under-represented groups leaving are three forces behind this growing skills gap.
In the next few years, retaining talent, not just recruiting it, will become a strategic imperative. It is all about helping workers see new paths and connect experience to future roles. When manufacturing is seen as a place where diverse talent can grow, the skills gap will shrink, and the sector will become more resilient.
Columbus UK
www.columbusglobal.com
automationmagazine.co.uk
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