Enhanced Rural Connectivity Set to Boost UK Manufacturing Sector by £8.8 Billion
A recent economic study points to the large potential impact of better digital connectivity in rural areas on UK manufacturing. Conducted by the Centre for Economics and Business Research (CEBR) for Virgin Media O2 (VMO2), the analysis suggests rural manufacturing businesses could see turnover rise by over 7%, adding an estimated £8.8 billion to the UK economy.
The study surveyed 1,096 decision-makers across various industries, focusing on the gap in digital connectivity between rural and urban areas. It assessed the potential growth in turnover and employment if rural businesses were to reach either perfect or urban-level digital connectivity. The results indicated that better rural connectivity could add £65.1 billion to the UK economy and drive a 6.8% rise in employment.
VMO2 identified manufacturing as the sector with the most to gain in terms of both turnover and employment. This makes sense given that most factories and nearly half of manufacturing jobs are in rural areas. The sector has been dealing with productivity challenges, and many manufacturers expect economic conditions in the UK to worsen.
VMO2 points to the role that technology could play in addressing these issues. Automation, wearable technology, and Internet of Things (IoT) devices all require reliable, high-quality connectivity, which remains lacking in many rural areas. The survey found that rural manufacturing businesses want to adopt technologies like remote stock checking and fleet management, both of which depend on real-time data access through strong connectivity.
A case study of British Sugar, which worked with Virgin Media O2 to build a multi-site 4G and 5G-ready private network, illustrates the benefits. This network supports IoT devices and AI applications, improving production efficiency and reducing downtime.
Jeanie York, Chief Technology Officer at Virgin Media O2, says that strengthening rural connectivity can unlock growth and employment in rural manufacturing. She highlights the company’s commitment to expanding network coverage in partnership with various stakeholders.
Nandini Chakrovorti, Associate Director of Digital Engineering at the UK’s Manufacturing Technology Centre, adds that connectivity is important for manufacturers looking to improve processes and reduce environmental impact. It enables better use of AI, robotics, and digital twins, helping to sustainably improve productivity and global competitiveness.
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