A new study from RS Group reveals a concerning disconnect in UK manufacturing: while executives overwhelmingly recognise the importance of innovation, many are not turning that belief into strategic action.
The research — based on a survey of industry decision-makers — finds UK manufacturers are confident about innovation but struggle to operationalise it, a gap that could undermine competitiveness both domestically and against European rivals.
A Strong Belief in Innovation — But Limited Strategic Execution
Across the UK manufacturing sector, 100 % of senior leaders surveyed agree innovation is vital for competitiveness. But when it comes to execution, the picture looks markedly less certain. Only 57 % say innovation is key to business survival, suggesting many view it as desirable rather than essential to long-term success.
Comparative figures from European peers paint a starker contrast: in Italy, 79 % of leaders believe innovation is crucial to survival, while 74 % of French leaders take the same view. Given that around 50 % of UK manufacturers see European firms as their primary competition, this disparity could have serious implications for international competitiveness.
Barriers: Culture and Technology
The research highlights several systemic obstacles that are slowing down innovation execution in UK manufacturing:
- Resistance to change remains prevalent, with 46 % of respondents citing it as a primary barrier.
- Around 34 % describe their innovation approach as opportunistic or ad-hoc, indicating a lack of structured strategy.
- Only 10 % rate their technology infrastructure as “very advanced,” limiting their ability to leverage digital tools for innovation.
These findings align with broader industry concerns that cultural inertia and outdated systems prevent many manufacturers from making the most of emerging technologies and process improvements.
Where Manufacturers Are Investing
Despite these challenges, there are clear signs that UK manufacturers are prioritising specific technologies to narrow the innovation gap. Key areas of planned investment include:
- Industrial Internet of Things (IIoT): cited by approximately 43 % of UK respondents.
- Cybersecurity tools: a priority for 40 %.
- Advanced analytics and data platforms: a focus for 35 %.
These technologies are seen as building blocks for more data-driven, resilient, and responsive manufacturing ecosystems — essential capabilities as sectors move towards greater automation and integration.
Innovation as a Competitive Imperative
Mike Bray, VP of Innovation at RS, points to the research findings as a call to action:
“Many UK manufacturers are approaching innovation as an opportunistic pursuit rather than as a non-negotiable component of their long-term strategy. On top of investing in the right technology foundations, it is essential UK manufacturers shift their mindset on innovation’s role to maintain competitiveness across Europe.”
Bray’s comments underscore a wider debate within UK industry: innovation is widely supported in principle, but less widely embedded in practice. Bridging that gap — both culturally and technologically — will be central to future success in a global manufacturing environment.
What It Means for UK Manufacturing
The RS research points to a critical juncture for UK manufacturing: leadership fully appreciates innovation’s importance, but execution — the bridge between idea and impact — remains uneven.
With global competition intensifying and technology evolving rapidly, UK firms must adopt strategic, long-term innovation planning, supported by cultural openness and modern technology infrastructure, if they are to thrive.
For businesses and policymakers alike, the message is clear: supporting innovation is not enough — it must be embedded in strategy and practice to deliver competitive advantage