Why manufacturers can’t afford to ignore cloud adoption

When you think about manufacturing in the UK, big names like Unilever or Rolls-Royce might come to mind. 

But in reality, the midmarket manufacturers make up a huge chunk of the industry, businesses that might have started as local factories or workshops but now play a vital role in the economy. And while many of these companies have thrived on traditional methods, they’re facing some serious challenges today.

The global uncertainty and skills shortages of the past few years have left many manufacturers scrambling to adapt. But perhaps the biggest hurdle is the demand for digital transformation. 

Our latest research found that 68% of UK midmarket manufacturers see cloud ERP as an untapped opportunity.

Yet over half (54%) believe their limited cloud usage is holding them back from embracing technologies like AI and IoT—tools that are becoming essential in modern manufacturing.

The ERP advantage

The benefits of adopting cloud ERP go beyond simple efficiency. Many manufacturers reported that cloud ERP improved their data security, increased processing speed, and provided much-needed scalability as they grow. 

In fact, 49% said the high availability of cloud ERP is crucial for business continuity. It’s not just about storing information; it’s about having the flexibility and resilience to keep operations running smoothly, even when the unexpected happens.

One of the more standout insights? If an ERP system went down for a day, midmarket manufacturers estimate they could lose over £40,000 on average. It’s not just revenue at risk—38% of businesses also worry about the long-term reputational damage of missing orders or failing to deliver on time.

Looking ahead

As we move deeper into 2024 and beyond, it's clear that midmarket manufacturers need to fully embrace cloud ERP to stay competitive. Technologies like AI, IoT, and automation are becoming more accessible, and manufacturers who adopt these tools are better positioned to drive growth and sustainability. 

Almost half of the manufacturers we spoke to are prioritising cost reduction and improving how they use the data they collect—cloud ERP is central to both these goals.