Make UK’s latest report, AI, Skills and the Future of the UK Manufacturing Sector, provides manufacturers a useful moment to pause and reflect.

The report highlights the huge opportunity AI could create for UK manufacturing, from productivity and efficiency through to resilience, quality and better use of existing talent. It also highlights something many manufacturers will recognise immediately: adoption is still early, operational use remains limited, and skills are holding many businesses back.

According to Make UK, only 2% of manufacturers say AI is widely embedded across their operations. Fewer than 40% are using AI in some areas, while nearly one in five have not adopted it at all. AI use is currently concentrated in back-office functions, with 83% using it in areas such as HR, finance and administration. Core operational use remains much lower, including 11% in production, 7% in supply chain and 6% in quality control.

For a sector where productivity, quality, cost, delivery and resilience are under constant pressure, that gap matters.

The most important message in the report, however, is not simply about technology. It is about capability. More than half of manufacturers cite skills shortages as the main barrier to AI adoption, and Make UK’s report is clear that the sector needs practical, role-relevant skills that help people apply technology in real manufacturing environments.

That is a message we strongly recognise at CQM Training & Consultancy.

The Future Factory Still Depends on People

There is a temptation to talk about AI adoption as if the technology itself is the transformation. In manufacturing, that rarely holds true.

A new tool can generate insight, automate a task or support better decisions, but it still relies on people who understand the process, the customer requirement, the operational risk and the reality of how work happens. Before AI can support improvement, teams need to understand what they are trying to improve. Before data can inform better decisions, people need to know what question they are trying to answer. Before technology can scale, there needs to be trust, structure and confidence across the workforce.

Make UK’s latest report reflects this. It states that manufacturers are prioritising broad, adaptable capabilities over niche coding. Data literacy and analytics are ranked as the most important skills as businesses adopt AI, followed closely by process improvement and problem-solving. Leadership and change management also feature strongly, reinforcing that AI adoption is as much about people and work design as it is about systems.

This is where practical training becomes so important.

Manufacturers do not only need AI awareness. They need people who can define problems properly, use data with confidence, improve processes, lead change and apply structured thinking to real issues on the shop floor, in quality, in engineering, in planning, in supply chain and across wider operational teams.

The Skills Challenge is Not Abstract

One of the most useful parts of Make UK’s report is its focus on applied capability. The skills manufacturers identify are not limited to specialist AI roles or advanced programming. They include the practical capabilities that help people improve work, make better decisions and lead change.

Make UK’s skills findings are particularly relevant because the highest priorities are not confined to advanced technical capability. When process improvement, problem solving, effective leadership and change management are viewed together, they represent a major part of the skills requirement manufacturers identify for AI adoption and future competitiveness, followed by data literacy, which is key to understanding, articulating and having confidence to make informed decisions.

That matters because these are the areas where practical improvement training can make an immediate difference. Manufacturers need people who can understand processes, question variation, use evidence, lead colleagues through change and turn insight into better ways of working. These are not separate from AI adoption. They are the conditions that make AI adoption more likely to succeed.

This is also where CQM’s work is most directly relevant. Our programmes are designed to build practical capability in the skills that sit behind improvement, adoption and change, which is embedded in data.

These are not future skills in a distant sense. They are live requirements for manufacturers trying to reduce waste, improve quality, respond to customer expectations, control cost, increase capacity, strengthen tender competitiveness and create better places to work.

They are also the skills that allow manufacturers to move from isolated improvement activity to a shared culture of continuous improvement.

Greater Visibility is Needed for Providers Already Doing This Work

Make UK’s report calls for training that is flexible, practical, production-friendly and aligned with real manufacturing needs. It also says manufacturers need real manufacturing case studies, role-based modular content, alignment to specific AI use cases, and learning that links to cyber, data governance and change management.

We agree with that challenge. We also believe there needs to be greater visibility of the specialist providers already delivering this kind of support to manufacturers.

At CQM Training & Consultancy, manufacturing is not an occasional sector focus. It is part of our history and our identity. CQM originally stood for “The Centre for Quality and Manufacturing Excellence”, and for more than 30 years we have worked with organisations to build practical capability in continuous improvement, Lean Six Sigma, operational excellence, leadership and workplace-based improvement.

Our strongest affinity remains with the advanced manufacturing sub-sectors that contribute so much to the UK economy, including aerospace and defence, food and drink, automotive, and the wider supply chain and industrial manufacturing.

That connection is reflected in the networks we are part of and the clients we support. We are members of ADS, Supply Chain Solutions and the North West Aerospace Alliance, supporting our work across aerospace, defence and advanced manufacturing. We are also members of the National Skills Academy for Food & Drink, with our commercial courses industry approved, reflecting our continued focus on practical, sector-relevant development for food and drink manufacturers.

The challenge now is helping more manufacturers, particularly SMEs, see that practical support already exists.

At CQM, our two-day Root Cause Analysis programme is designed to build that foundation. It uses the 8D methodology, a practical problem-solving case study simulation and a ready-to-use 8D workbook template that delegates can apply back in the workplace. The programme is delivered onsite, tailored around operational demands and suitable for people at different levels, from frontline team members through to managers and cross-functional teams – and even senior leadership.

It also links directly to the kind of practical, manufacturing-specific learning Make UK is calling for. The programme includes realistic scenarios, structured application and the opportunity to build a common language around problem solving. It can support teams working at operator, technician, supervisor, quality, engineering, maintenance, production and leadership level.

For manufacturers thinking about AI adoption, RCA may not be the whole answer. It is, however, a highly practical place to start building the capability that makes digital and AI-led improvement more usable.

From RCA to Wider Improvement Capability 

The Make UK report also points to a wider need: manufacturers need people who can connect data, technology, process improvement and change.

That is why RCA should be seen as part of a broader capability pathway. For some organisations, it may be the first step towards a more consistent approach to problem solving. For others, it may sit alongside;

• Lean Awareness
• 5S Methodology
• Changeover Reduction (SMED)
• Change Management
• Value Stream Mapping
• Lean Six Sigma Yellow Belt
• Lean Six Sigma Green Belt
• Lean Six Sigma Black Belt
• Business Analyst
• Process Leader

As well as bespoke leadership development or more tailored operational excellence support. The common thread is practical application.

Manufacturers need people who can identify opportunities, define problems, map processes, interpret data, challenge assumptions, test improvements, standardise better ways of working and sustain the gains. These are the capabilities that help organisations reduce cost, increase quality, improve delivery, strengthen customer value and create the conditions for innovation.

They also support a more confident workforce. When people have a shared framework and the skills to contribute, improvement becomes less dependent on a small group of specialists. It becomes part of how the organisation works.

That matters for AI adoption too. Technology is more likely to be trusted and used well when people are involved early, understand the purpose, see the link to real work and have the skills to participate.

Skills are the Route to Manufacturing Growth

Make UK’s report makes the case that AI could support productivity, resilience and future growth across UK manufacturing. It also makes clear that skills will determine whether that potential is realised.

That should be a signal to manufacturers of every size.

Future-fit factories will not be built through technology investment alone. They will be built by organisations that develop their people, strengthen their processes and create a shared capability for improvement.

That starts with practical, relevant and usable training. Training that fits manufacturing environments. Training that reflects real operational challenges. Training that helps people apply what they learn immediately. Training that builds confidence, standardisation and a common language across teams.

For CQM, this is not a new direction. It is the work we already do.

The opportunity now is for more manufacturers to recognise that the skills needed for AI adoption, digital transformation and future-ready operations are often the same skills that underpin effective continuous improvement: problem solving, process thinking, data confidence, leadership, collaboration and the ability to turn insight into action.

Download Our Free 8D Model Template

Ready to Build Practical Problem-Solving Capability?

Our two-day Root Cause Analysis programme helps manufacturing teams investigate issues properly, apply the 8D framework and build a more consistent approach to problem solving across the business.

Delegates work through a practical AI case study simulation and leave with a ready-to-use 8D workbook template they can apply back in the workplace. For teams that want support and coaching back in the workplace, we can offer this too, to further embed the knowledge and skills. Contact us today using the form below.

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