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Boosting industrial productivity with robotics investments in Scotland

14 Nov 2024 • 4 minute read

Lanarkshire’s Smart Hub is helping Scottish businesses to future-proof workforces and increase productivity.

Skills shortages are posing productivity challenges for businesses in Scotland, but a solution is emerging. The use of robotics is helping to meet business requirements and promote sustainable business growth and economic resilience across Scotland. 

Existing uses in the country have demonstrated that an automated workforce can enhance economic growth and create new jobs for human workers. And our innovative business network and leading academic institutions are further boosting Scotland’s position as a leader in the use and development of robotics. 

The impact of robotics on productivity 

Analysis from GlobalData predicts that the global robotics industry will be worth $127.6 billion by 2030. Growth will be led by more applications of industrial and service robots, which are becoming more intelligent through artificial intelligence (AI). As populations age, automation will be essential for the smaller, younger workforce.

The Smart Hub at New College Lanarkshire is facilitating the adoption of robotics across small to medium enterprises. Funded by the Scottish Government and Scottish Enterprise, the hub is intended to boost national productivity. 

Collaborative robots (cobots) are loaned to businesses for free by The Smart Hub, which also provides training for the technology. Cobots have already seen successful applications across many industries, from welding to ice cream making. 

“These robots can be a huge advantage,” notes Ryan Sheridan, cobot and automation advisor at Smart Hub Lanarkshire. “The developments in Industry 4.0 tech means that robots have the flexibility and automation that really suit the market.”

However, a business can't grow with robotics alone. Contrary to many assumptions, the use of cobots typically requires hiring staff rather than letting them go. 

To optimise the robotics opportunity for businesses, The Smart Hub recognises that a critical skills gap - the ability to work with this tech - must be addressed.  

“We will be developing qualifications and apprenticeships that upskill people,” says Sheridan. “This equipment isn’t going away, it's something that everyone will need to understand. There really isn’t a limit to where the tech can be deployed.”

Investing in the future workforce

The high upfront costs can put businesses off investing in robotics. Yet use cases in Scotland have delivered an ROI within six to nine months from the increased productivity. 

“One company in Glasgow saw a return in investment in 20 weeks,” says Sheridan. “They were then able to introduce something like a 10% or 15% wage increase for staff – and this was in 2022, a difficult financial time.”

Scotland’s heritage manufacturing industry could become a key beneficiary of the robotics investment boom. With 7% of the region’s 9300 manufacturing businesses in Lanarkshire, being near the Smart Hub will be a huge advantage.

As AI and machine learning advance robotics capabilities, Scotland’s tech hubs and world-class universities will provide businesses with critical support. 

The National Robotarium at Heriot-Watt University in Edinburgh is a vital centre for robotics development across Scotland.

Collaboration drives innovation in Scotland

Funding opportunities for robotics are plentiful in Scotland, with grants available from Scottish, UK, and European institutions. 

“We are a relatively small country compared with others, but we are very well-connected,” says Morrison. “We know one another and what is on offer, making it easy to invest and grow your business here.” 

Smart Hub Lanarkshire is a prime example of the synergy between government, the private sector, and academia in Scotland.

As the automation drive accelerates, the support available will keep the country ahead of the curve. Leap Automation, HonuWorx, and Metacarpal Prosthetics are some of the future industry leaders to benefit from support from our domestic arm, Scottish Enterprise.
 
This rapidly expanding network is predicted to grow into a specialist cluster, following the path of dedicated clusters such as FinTech Scotland. 

Scotland continues to prove what can be achieved with the right expertise and support to make businesses more productive.

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