AI Isn't the Biggest Challenge Facing Manufacturing - Skills Are

27th August 2026

Artificial intelligence has become almost impossible to avoid in conversations about the future of business.

Manufacturing is no different.

From predictive maintenance to automated inspection, generative design to production planning, AI has the potential to change how factories operate.

But despite the hype, adoption across UK manufacturing remains relatively early.

According to Make UK's latest research, just 2% of manufacturers say AI is widely embedded across their operations. Fewer than 40% are using AI in some areas, while almost one in five manufacturers have not adopted it at all.

The real barrier: people

More than 50% of manufacturers identify skills shortages as the main barrier to AI adoption.

And there is an interesting gap between where AI is being used and where manufacturers could potentially gain the greatest operational benefits.

  • 83% use AI in HR, finance and administration
  • 11% use it in production
  • 7% use it in supply chain
  • 6% use it in quality control

In other words, AI is already helping manufacturers with some administrative tasks. But its application on the factory floor is still comparatively limited.

What could AI actually mean for manufacturing?

The most useful question isn't “How do we use AI?” It is “Where could technology remove friction from the way we already manufacture?”

  • Predictive maintenance - using production and machine data to identify potential equipment problems before they cause downtime.
  • Quality control - supporting inspection processes and identifying deviations more quickly.
  • Production planning - helping manufacturers optimise schedules, capacity and resources.
  • Design and engineering - using computational tools to explore design options, identify issues and accelerate development.
  • Supply chain - improving visibility of stock, demand and supplier requirements.
  • Documentation - reducing the administrative burden associated with repetitive technical and production documentation.

None of these replaces manufacturing expertise. They potentially amplify it.

Technology still needs manufacturing knowledge

Manufacturing isn't simply a digital process.

It involves materials, tooling, tolerances, machinery, processes, people and decades of practical knowledge.

Technology can provide more information. But experienced engineers and manufacturing teams still need to understand what that information means and what action should follow.

MPM has already invested in technologies designed to complement traditional manufacturing expertise. Our CNC capabilities let us manufacture highly accurate patterns and support production through machining and kitting, while 3D scanning supports accurate replication, reverse engineering, and verification.

MPM CNC & Kitting

3D Scanning

The technology is only half the equation

There is another reason the skills issue matters.

As manufacturing becomes more technologically advanced, the people working within it need to become more capable too.

That doesn't necessarily mean every engineer needs to become an AI specialist.

It means manufacturing businesses need people who can combine technical knowledge, practical experience, digital capability and problem-solving.

Make UK's research identifies skills as one of the critical factors that will determine whether manufacturers can turn AI's potential into actual productivity improvements.

Investing in the next generation

Skills development isn't a new conversation for MPM.

Our 2025 Annual Review highlighted the four apprentices who joined the business during the year, alongside continued training and development across production, design, dispatch and engineering.

We've also continued to work with initiatives such as the Leeds Manufacturing Festival, welcoming students into the business and helping young people understand the opportunities available within manufacturing.

See the MPM 2025 Annual Review

As part of that commitment, MPM has recently created a new role dedicated to embedding technology and AI across the business.

The role is focused on identifying where emerging technologies can deliver practical value, from improving internal processes and productivity through to supporting our manufacturing operations and the way we work with customers.

The objective isn't to introduce technology for technology's sake.

It's about asking a much more practical question:

Where can technology make MPM better?

That could mean removing repetitive administration, improving access to information, supporting decision-making, strengthening processes or finding new ways to make our manufacturing operations more efficient.

For a business built around skilled people and specialist manufacturing knowledge, we see technology as an opportunity to augment that expertise rather than replace it.

 

What does the future look like?

Make UK's research suggests nearly half of manufacturers expect AI to significantly reshape jobs and working practices within the next two years.

That doesn't necessarily mean fewer people. It could mean different people doing different things.

The manufacturers that benefit most may be those that don't view AI as a replacement for their workforce, but as another tool for making experienced people more productive.

For MPM, that philosophy fits naturally with our approach to manufacturing.

We invest in people, technology and processes together.

The takeaway

AI will undoubtedly change manufacturing.

But the winners won't necessarily be the companies that adopt the most technology.

They'll be the companies that understand where technology genuinely adds value — and have the skilled people capable of making it work.

Because the future of manufacturing isn't necessarily people versus technology.

It's people + technology.

 

Innovate - Quality - Reliable - Team - Leaders

"MPM understands the importance of quality, price and delivery. Achieving all 3 is no easy task, but every time we deal with MPM these 3 aspects are achieved."

Keith Siddle, Lamplas

READ CASE STUDY
Made in BritainMake UK MemberISOISO 14001Leeds ManufacturingComposites UKLiving WageWest Yorkshire Manufacturing Services