Sky-high inflation stifles tech acceleration for 1/3 of manufacturers
19 January 2023
A new study has found that in the wake of the recession, UK businesses are seriously struggling to invest in digital technology.
With UK recession concerns front of mind and inflation still tipping 10 percent, more than one in three manufacturers (37 percent) are finding it difficult to fund vital digitisation projects for their sales and marketing functions within previously set budgets.
The results reflect how spiralling business costs across the board are impacting companies’ abilities to adopt digital sales advances fully, at a time when the shift to online purchasing is increasing exponentially, so stifling their business growth and keeping them behind tech-savvy competitors.
50 percent of manufacturers being left behind cited ongoing pandemic disruptions as an additional barrier to progressing any digitisation projects, as well as a lack of time (37 percent). This highlights the stark recruitment challenges companies are facing currently as the number of vacant jobs in the UK reached a record high of 1.3 million in 2022.
When combined with the boom of ‘quiet quitting’, firms are struggling to work at full capacity and this is impacting their uptake of new developments, and projects are being restricted.
12 percent of manufacturers said rising energy costs were hindering their progress towards digitisation – a key issue facing many as the UK economy struggles with the cost-of-doing business – meaning revenue is being diverted away from vital sales and marketing projects.
Existing sales processes within the manufacturing sector can often be outdated, with lots of manual administrative processes and laborious exercises increasing the time taken and risk of human error.
Digitisation takes these physical, outdated processes and converts them into efficient and effective digital systems. It is proven to support business growth and positive change, with adopters benefiting from improved productivity and efficiency, as well as increased sales and customer engagement.
70 percent of B2B organisations have invested in digital commerce channels this year, with 73 percent investing in websites, 49 percent in sales representatives and 37 percent in mobile apps.
The independent research, with a nationally representative sample of 500 business leaders, was conducted by Censuswide on behalf of Software as a Service (SaaS) firm, Adventoris.
CEO of Adventoris, James Clarkson, said: “As 2023 gets underway, these findings lay bare the impact the current economic climate is having on firms in the manufacturing industry and it is disheartening to see the toll inflation and rising energy costs are taking.
"So many businesses are being held back from reaching their true potential through being unable to progress with plans to adopt digital processes.
“Manufacturers are at the core of British industry and play a huge part in our nation’s economy. Digital processes are having an incredibly positive impact on improving efficiency, productivity and results, but it is obvious from our findings that firms need support to be able to access these benefits.
“Quarter one is going to be tough for many, but digitising sales and marketing functions can bring great advantages. For example, our clients have experienced basket sales increasing by 15 percent when using our digital sales app technology with their customers.”
Ben Bowen, Sales Forecast Analyst from Staedtler, a firm which has recently adopted digitisation in the form of a sales app, said: “Investing in digitising our sales process has been a brilliant choice for us.
“The pandemic disrupted so much for our industry with supply chains, usual operating processes and sales routes all interrupted.
“Being able to adopt these digital sales processes has allowed us to futureproof our operation and ensure a smooth, consistent and effective method for our customers.”
Adventoris is the creator of SwiftCloud, a B2B mobile app for distributors and wholesalers that provides businesses with a platform that enables their customers to see products, communicate with the company and make orders 24/7. SwiftCloud can save customers over 50 percent in ordering time.
To find out more about SwiftCloud, visit: www.swiftcloud.co.uk.