Smart Manufacturing Trends Shaping the Future of UK Industry

From the continued disruption of supply chains to the shortage of suitably skilled workers, the UK manufacturing sector is facing a range of challenges in 2025. There’s a clear need for digital transformation, innovation, and resilience, with the UK’s manufacturers needing to embrace smart manufacturing to remain competitive. Read on as we explore the smart manufacturing trends shaping the future of UK industry here.

Machine Health and Condition Monitoring

There has traditionally been a reliance on the manual capture and monitoring of production data. However, this is changing, with IoT-enabled sensors being integrated for the real-time monitoring of equipment health. These sensors can be quickly and easily installed, with machine data being digitally visualised. So manufacturers can better track machine use, identifying the need for replacement and training for improved performance. These sensors can also be relied on for the early identification of machine issues for productivity-boosting proactive maintenance.

Other benefits of proactive maintenance include:

• Reduced downtime and greater reliability
• Cost savings, with major repairs being avoided
• Increased equipment longevity
• Better compliance and standards of workplace safety

Wider Adoption of AI and VR

There has been significant progress in the development of AI-integrated machines and robots able to perform with intuition and safety. Such AI systems can process machine data for the prediction and automatic completion of activities with minimal need for human input. As mentioned, AI systems are also helping in the monitoring of machine performance, highlighting the need for maintenance to prevent costly repairs. AI supports the rapid processing of machine data, guiding manufacturers in process optimisation.

We’re also seeing the increased use of VR applications for such purposes as immersive training, remote troubleshooting, and design simulation. As an example, some manufacturing companies have started using smart glasses for the immersive comparison of real-world and simulated environments. Such comparison can help in identifying the need for adjustments, with the ability to test software and physical integrations before factory implementation. 

Increasing use of Robots in Collaborative Applications

There have long been concerns about the replacement of human workers with machines. However, it’s becoming increasingly clear that we’re still a long way from full factory automation. Rather, manufacturers are increasingly realising the value of human-machine collaboration. This is the case with collaborative robots, which are being integrated for the automation of repetitive and hazardous tasks. Integrated with advanced sensors and programming, these cobots can work safely in combination with people.

Common factory uses of robots in collaborative applications include:

• Precise component assembly
• Reliable product picking, placing, sorting, and packaging
• Intensive real-time quality checks (using cobots with vision systems and sensors)
• Loading and unloading of heavy and bulky equipment

The robotic performance of such tasks increases factory flexibility and productivity, with support for workforce upskilling.

Industry 5.0

Continuing the focus on automation, we’re seeing the evolution from Industry 4.0 to Industry 5.0. Since 2020, there’s been an increasing focus on the human role and more effective collaboration with machines. In Industry 5.0, technology is an enabler, augmenting human capabilities. The emphasis is now on making machines more human-friendly and enabling people to do more of what they do best. This will mean that we can move beyond the performance of set tasks to apply our creative and decision-making capabilities.

Environmental Focus

Besides the focus on human capabilities, Industry 5.0 also calls for the prioritisation of sustainability and resilience. This will be a future where technology is not only integrated for greater efficiency, but also in consideration of the long-term impact on the environment and society. Such an eco-friendly approach will be vital given the increased regulatory and consumer pressure on the adoption of sustainable manufacturing. It will mean the adoption of green chemistry, eco-friendly materials, and digital tools to minimise the environmental impact.

Cyber Security Threats

Of course, challenges and risks must be overcome in the collaboration between people and technologies. The greater connectivity and digitalisation will inevitably increase the risk of cybersecurity breaches. Measures must be taken for the safeguarding of digital data, given the potential for operational disruptions and the exposure of sensitive information. Systems such as blockchain and secure data management can make the difference in protecting assets and maintaining trust.

Continued Labour Challenges

The shortage of manufacturing talent has been clear for some time, with a reported 92% of UK manufacturing SMEs facing skills gaps. The Make UK Industrial Strategy Skills Report for 2025 has revealed 55,000 unfilled long-term manufacturing sector vacancies, costing the economy approximately £6 billion in lost output each year. The workforce issue is unlikely to be resolved any time soon, given the continued political uncertainty, limited funding, and negative perceptions of manufacturing roles. However, there is scope for positive change, with automation and digitalisation potentially helping to bridge the skills gap, together with the investment in STEM education and workforce development.

As mentioned, we’re still a long way from full-scale factory automation, with a clear need to bust the “robots take jobs” myth. Instead of concerns about worker replacement, there should be enthusiasm about the prospect of integrating technologies for the performance of tasks in the dull, dirty, and dangerous categories. Technologies can help in addressing workforce shortages, giving employed staff greater freedom to focus on tasks that demand high-level human knowledge and skills. Automation will make for the creation of higher-level jobs, which people are bound to find more satisfying.

Support from Automate UK

From the sensor-based monitoring of machine health and performance to the collaboration between humans and robots, these are the key trends defining UK manufacturing. As the leading trade association for automation suppliers and technology end users, you can rely on Automate UK for continued information and guidance on how to make the most of these trends. Presenting the latest insights, networking opportunities, and expert support, we can help your business navigate the changes and thrive. Get in touch to find out more about the benefits of joining Automate UK.