The Robotics and Automation event at the MTC (Manufacturing Technology Centre) took place on 17-18 June this week. Robot Automation attended to gain insights from industry leaders and companies working at the heart of UK manufacturing. This blog documents my reflections on the event, after hearing discussions about the UK’s automation journey.

The $100 Story

There’s a well-known economic parable about a small town in recession. Everyone owed someone money, and had nothing to spend. The economy was stuck. One day, a stranger checked into the local inn and handed $100 as a deposit for the room. The innkeeper took the money and rushed to pay his butcher, who then paid the farmer, who paid the feed supplier, and so on… until the money made a full circle back to the innkeeper, before the stranger took it back, having decided not to stay after all. Yet in that short moment, every debt in town had been paid. The temporary help and spending confidence from an outsider broke the cycle of stagnation.

The lesson is that sometimes a simple transaction can have a ripple effect. It is often used to metaphorically explain how governments or central banks can stimulate the economy, by offering tax breaks or funding. But what if that stranger doesn’t show up? Do we wait for help, or do we look for the cracks in the cycle where we can try to push through ourselves?

The UK’s Productivity Trap

Currently the UK’s productivity level is lagging behind many other advanced economies. Automation, one of the clearest levers for growth, is still underused. As of 2024, the UK had just 119 industrial robots per 10,000 manufacturing workers, compared to a global average of 162, placing the UK 23rd in the world. If we remove the automotive sector, that number drops to just 69 per 10,000 workers, revealing a bigger gap in the broader manufacturing field.

The figures are striking, especially for a country that is still the 12th largest manufacturing economy, and notably the only G7 country outside the top 10 in manufacturing rankings. This shortfall reflects a self-reinforcing cycle:

• Low productivity leads to
• Low output and low growth, resulting in
• Lower incomes and low profits, which means
• Less investment in education, innovation, or capital, leading to
• Even lower productivity

It’s not that UK companies don’t understand the benefits of automation, they do. But many are put off by the high costs of ownership: not just the capital investment in robots and machines, but also system integration, software, training, and ongoing maintenance. For both business owners and lenders, the risks feel high.

Adding to the issue is a skills shortage. Many companies can’t find workers with the right skills to use or maintain automation systems. Meanwhile, workers are stuck in low-paid, low-skill jobs, without opportunities or clear pathways into more technical, higher-value positions.

So, where do we break the cycle?

Large companies, especially in the automotive and aerospace sectors, while taking on automation, can afford their own training centres to maintain staff skill levels, and pilot new technologies. But small and medium-sized enterprises (SMEs), which make up 99% of UK manufacturing businesses, often cannot. That’s why we need innovation, not just in technology, but also in accessibility. Companies and workers need low-cost entry points: modular robotics, low-risk trials, and partnerships with institutions and tech providers.

Are Robots Replacing Jobs?

A common misconception about automation is that robots replace human workers, but data from other manufacturing leaders suggest otherwise. Just like personal computers didn’t replace office workers but empowered them, robots are just tools used by humans that can enable new jobs. Growth in automation doesn’t only create robotics jobs, it also stimulates employment opportunities in other related economic fields.

The key is accessibility. PCs only became mainstream when operating systems became user-friendly. Remember BlackBerry phones with a comprehensive keyboard? If smartphones had remained like that, my 80-year-old grandfather would not be able to use one today. Intuitive touchscreens have made modern mobile devices accessible to all.

The same evolution is happening in robotics. Tools like RoboDK allow users to simulate robotic processes before making investments. It’s affordable, practical, and most importantly, it helps reduce fear of the unknown. With platforms and technologies like this, companies can train staff, prototype workflows, and make informed automation decisions while minimising risks. Greater accessibility to robotic technology just means more users, more applications and more jobs.

Conclusion

The UK doesn’t lack potential, but momentum. The gap in automation is less a problem of awareness, and more one of access, affordability, and confidence. Whether or not an external stranger arrives in time to give a boost, we can proactively find ways to break through the cracks of a destructive cycle.

We anticipate that the government’s upcoming industrial strategy will further support manufacturing, especially for SMEs that are the backbone of British industry. However, if a fiscal policy cannot form, we must push ourselves.

For businesses: trial, innovate, and partner. For workers or job seekers: learn, experiment, and self-initiate. Sometimes, the cycle doesn’t break until someone moves first and the push can come from within.