Enhanced Rural Connectivity Set to Boost UK Manufacturing Sector by £8.8 Billion
A recent economic study highlights the potential impact of improved digital connectivity in rural areas on the UK’s manufacturing sector. Conducted by the Centre for Economics and Business Research (CEBR) for Virgin Media O2 (VMO2), the analysis suggests a substantial economic benefit, with a possible increase in turnover for rural manufacturing businesses by over 7%, contributing an additional £8.8 billion to the UK economy.
The study involved surveying 1,096 decision-makers across various industries, focusing on the disparity in digital connectivity between rural and urban areas. It assessed the potential growth in turnover and employment if rural businesses were to achieve either perfect or urban-level digital connectivity. The results indicated that enhanced rural connectivity could elevate the UK economy by £65.1 billion and create a 6.8% rise in employment.
Manufacturing, identified by VMO2 as having the most significant potential for increased turnover and employment, faces challenges because most of its factories and nearly half of its jobs are located in rural areas. The sector has been struggling with productivity issues, and many manufacturers anticipate worsening economic conditions in the UK.
VMO2 emphasizes the role of technology in addressing these challenges. Advancements such as automation, wearable technology, and Internet of Things (IoT) devices require high-quality connectivity, which needs to be improved in rural areas. The survey highlighted a desire among rural manufacturing businesses to adopt technologies like remote stock checking and fleet management, which depend on real-time data access facilitated by robust connectivity.
A case study of British Sugar, which worked with Virgin Media O2 to develop a multi-site 4G and 5G-ready private network, showcases the benefits of improved connectivity. This network supports IoT devices and AI applications, enhancing production efficiency and reducing downtime.
Jeanie York, Chief Technology Officer at Virgin Media O2, asserts that bolstering rural connectivity can unlock substantial growth and employment opportunities in the rural manufacturing sector. She underscores the company’s commitment to expanding network coverage in collaboration with various stakeholders.
Nandini Chakrovorti, Associate Director of Digital Engineering at the UK’s Manufacturing Technology Centre, adds that connectivity is crucial for manufacturers to optimize processes and minimize environmental impact. It enables the effective use of technologies like AI, robotics, and digital twins, thereby sustainably enhancing productivity and global competitiveness.
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