The UK government’s new Modern Industrial Strategy places robotics, automation and artificial intelligence (AI) at the centre of its plan to reshape the economy by 2035. The 10-year vision integrates these technologies into three key growth sectors—advanced manufacturing, digital and technologies, and professional and business services—marking a major push to expand intelligent automation across industry and services. A core component is the Advanced Manufacturing Sector Plan, which targets a near doubling of private investment in subsectors such as aerospace, batteries, agri-tech and automotive. It promotes smart production methods, new materials and robotics to raise productivity. The Made Smarter programme will expand with pilot projects to help small and medium-sized manufacturers adopt robotics, digital twins and predictive automation tools. In parallel, the Digital & Technologies Plan identifies robotics as a key part of the UK’s emerging tech sector, alongside AI, semiconductors and quantum computing. It outlines measures in research, finance and regulation to help the UK lead in intelligent systems and automation. The Professional and Business Services Sector Plan goes further by allocating £150 million to boost AI and automation in service-based fields including law, accountancy, consultancy, architecture and engineering. This includes five new technology hubs and an AI Skills Hub to train professionals in advanced automation. Industry has largely welcomed the strategy, especially its focus on innovation for SMEs. Oana Jinga, Chief Commercial Officer and co-founder of UK robotics firm Dexory, praised the support but warned that talent shortages remain a challenge. “If the UK wants to lead in truly advanced, high-tech manufacturing, we need more clarity and commitment on how this will be delivered in practice,” said Jinga. She called for sustained investment in skills development, STEM careers and simplified recruitment for robotics and software roles. A £4 billion Industrial Strategy Growth Capital initiative from the British Business Bank aims to unlock £12 billion in private funding for high-growth firms, including those in robotics and automation. Up to £60 million in direct investment will support UK tech companies, along with backing for new venture capital funds focused on AI and robotics. The strategy also addresses cost pressures, notably high energy prices. A planned British Industrial Competitiveness Scheme will offer reduced electricity rates for strategic industries and support grid upgrades tailored to automation needs. This plan builds on existing policy. The Smart Machines Strategy 2035 outlines the UK's ambition to lead in robotics, highlighting the role of smart machines in solving complex challenges and boosting productivity. Demand is rising—robotics installations hit a record 3,830 in 2023, up 51% year-on-year, driven by the automotive sector and temporary tax breaks. Yet the UK still trails global leaders. It has just 141 robots per 10,000 manufacturing workers, compared with 397 in Germany and 1,000 in South Korea. Analysts link this to the UK’s weak productivity, though forecasts suggest rapid growth ahead, with a projected 36% annual rise in the robotics market through 2027 driven by labour shortages and economic uncertainty. Beyond manufacturing, the government is targeting automation in areas like sustainable farming, with £12.5 million in funding for robotic and sensor technologies in agriculture. While challenges remain around skills and infrastructure, the UK’s industrial strategy lays the groundwork for a more competitive economy built on advanced automation, innovation and long-term resilience.
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