UK and Irish manufacturers face mounting challenges from rising energy and labour costs, skills gaps, and ageing systems, prompting a shift towards open, software-driven automation solutions to enhance agility and sustainability.
The UK and Irish manufacturing base faces mounting pressure from rising operating costs, skills shortages and ageing control systems, leaving many firms struggling to invest in productivity and decarbonisation at the pace required to stay competitive internationally. Industry surveys point to energy and labour costs as the principal near‑term threats, while software and legacy automation architectures compound longer‑term strategic risk.
According to a Make UK survey, 65% of manufacturers identify escalating energy and employment costs as a direct challenge to competitiveness, while skills gaps, the expense of transformation and entrenched legacy systems are constraining nearly two in five firms. The report and related commentary from Make UK and Infor also show that while more than half of manufacturers are increasing investment in AI, machine learning and automation, nearly half are held back by a shortage of technical skills, integration difficulties, high costs and cultural barriers to adoption.
Energy remains a critical differentiator. Industrial power prices in the UK and Ireland, reported in industry briefings at roughly 18–20p/kWh in the UK and about 24p/kWh in Ireland, are far higher than comparable rates in major manufacturing markets such as the United States and China, where costs can sit near 6–7p/kWh. Those disparities are widely seen as widening an “automation gap” and limiting the capacity of producers here to modernise rapidly.
Beyond headline costs, studies quantify the drag imposed by closed, vendor‑locked automation. An Omdia analysis cited by industry sources estimates that incompatible and fragmented automation ecosystems cost the sector around £8.41 billion a year in lost productivity and additional operating expense, equivalent to roughly 4.5% of average turnover, with smaller firms disproportionately affected. Tricentis research adds another layer of concern: poor software quality places nearly 60% of UK manufacturers at risk of major outages within a year, with many respondents estimating six‑figure annual losses when outages occur.
Schneider Electric argues that a decisive route out of these constraints is to separate software from hardware through Open, Software‑Defined Automation (OSDA). “It allows manufacturers to use the best tools for their specific business challenges, integrate new capabilities quickly, and evolve at ‘software speed’ rather than being bound by legacy systems,” Neil Smith, Global CPG President at Schneider Electric, said, framing OSDA as an organisational lever that accelerates change without wholesale hardware replacements.
The company positions OSDA as a way to redirect recurring hidden costs into innovation budgets and to shorten timeframes for deploying digital capabilities. Richella Oderbrecht, Chief Marketing Officer Industrial Automation at Schneider Electric, said: “Industry can’t compete with rigid, closed systems , Omdia found they cost mid‑sized manufacturers £8 million annually and large enterprises £33 million. At Schneider Electric, we’re transforming that reality with Open, Software‑Defined Automation, already demonstrated in our nine Global Lighthouse factories. This is how we unlock agility, intelligence, and sustainable performance at scale”.
Kristin Baker, VP Industrial & Process Automation for UK & Ireland at Schneider Electric, added: “UK manufacturers are facing real pressures, from high energy costs to legacy systems, but the opportunity to boost competitiveness exists today. With Open, Software-Defined Automation, we can modernize production at speed and unlock the agility and efficiency our industries need to compete globally.”
Schneider Electric presents EcoStruxure Automation Expert as an embodiment of that approach. The vendor states the platform follows the Universal Automation vision, enabling control applications to be developed, reused and deployed independently of particular hardware, removing the need for expensive reengineering when changes are required. The company also highlights client results: Giuseppe Zichittella, IT Solutions Manager at Italian coffee producer Zicaffè, said the firm realised payback inside a year after adopting EcoStruxure Automation Expert, gaining vendor‑agnostic orchestration, data driven quality and volume measurement and the freedom to digitalise at its own pace.
Independent industry data underscores why those propositions resonate. A survey published by Manufacturing Supply Chain found 94% of manufacturers reporting higher labour costs as firms bid to attract skilled staff, while other polling highlights the financial impact of downtime attributable to fragile legacy equipment, many firms cite typical event costs in the tens of thousands of pounds. Automation Magazine and other trade outlets have also highlighted sectoral supply pressures and input cost inflation that raise the stakes for faster, more flexible automation roll‑outs.
Adoption of open automation is not a panacea. Integration effort, cybersecurity, workforce readiness and governance of software lifecycles are non‑trivial tasks, and the transition will require investment in people and processes as well as technology. Industry analysts and trade bodies repeatedly stress that a shortage of trained engineering and software talent remains a critical barrier to scaling more advanced automation across the supply chain.
For companies focused on industrial decarbonisation, the architecture of control systems matters. Open, interoperable platforms can enable more granular energy management, faster deployment of optimisation algorithms and integration with plant‑level distributed energy resources, all of which support emissions reductions while protecting throughput. But delivering those benefits at scale depends on a pragmatic mix of vendor neutrality, standards alignment and a strategic approach to workforce development.
Taken together, the evidence points to an emerging consensus among technology vendors, industry bodies and some manufacturers: to restore competitiveness and accelerate decarbonisation, the sector must move beyond monolithic, closed automation estates towards open, software‑driven models. How quickly that evolution proceeds will be determined by the ability of individual firms to invest in skills, manage integration risks and convert short‑term cost savings into sustained capital for innovation.
- https://mepca-engineering.com/schneider-electric-decoupling-software-from-hardware-is-essential-to-boost-industrial-competitiveness/ – Please view link – unable to able to access data
- https://www.makeuk.org/insights/reports/2023/10/23/manufacturing-and-automation – A report by Make UK and Infor highlights that over half of UK manufacturers are increasing investments in Artificial Intelligence (AI), Machine Learning, and automation technologies to enhance productivity and efficiency. Despite this, nearly half of the companies face challenges such as a lack of technical skills, integration issues, high costs, and workplace culture barriers. Additionally, a majority believe the UK is lagging behind international competitors in adopting these technologies.
- https://www.makeuk.org/news-and-events/news/2023/10/30/industry-risks-falling-behind-on-ai-and-automation-as-competitors-steal-a-march – Make UK warns that the UK manufacturing sector risks falling behind international competitors in adopting AI and automation technologies. A survey reveals that more than half of manufacturers are investing in AI, Machine Learning, and Augmented Reality, with nearly two in five planning to adopt generative AI. However, barriers such as technical skills shortages, cost, and workplace culture hinder progress, and many firms believe the UK is failing to match competitors.
- https://www.standard.co.uk/business/business-news/british-sage-gdp-smes-b1243362.html – A report by Make UK and Sage indicates that British manufacturers have been lagging behind international competitors in automation over the past two decades. The study found poor use of robotics and AI systems, with training in relevant digital skills well below the necessary level. Nearly half of British manufacturers identify a lack of technical skills as the biggest hurdle to improving their use of innovative advanced technologies.
- https://www.automationmagazine.co.uk/nearly-two-thirds-60-of-uk-manufacturers-face-major-software-outages-in-next-year-due-to-quality-issues/ – A 2025 report from Tricentis reveals that 60% of UK manufacturers are at risk of major software outages in the next year due to quality issues. The financial impact is significant, with over half of manufacturers estimating annual losses between £390K and £773K, and nearly a third estimating losses exceeding £773K. The report highlights that poor software quality leads to customer turnover, increased technical debt, and more frequent security breaches.
- https://www.manufacturing-supply-chain.com/costs-rise-for-94-of-uk-manufacturers-as-higher-salaries-needed-to-attract-talent/ – A survey indicates that 94% of UK manufacturers have experienced rising costs due to the need to offer higher salaries to attract talent. The typical cost associated with downtime from unreliable legacy equipment is between £10,001 and £25,000 for a third of respondents. Additionally, ineffective utilisation of robots has led to significant financial losses, with one in five stating that between £25,001 and £50,000 has been wasted due to deployment mistakes.
- https://www.channelbiz.co.uk/press-release/omdia-predicts-display-glass-supply-to-be-constrained-in-2025/ – Omdia predicts that the flat panel display (FPD) glass market will face significant supply constraints in 2025. Leading glass makers have raised prices by over 10% in both the second half of 2023 and 2024, aligning with inflationary pressures in energy costs. The supply constraints are expected to be particularly acute in the second and third quarters of 2025, with demand growth exceeding capacity expansion.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
5
Notes:
The article references a Schneider Electric press release from November 26, 2025, discussing the impact of closed industrial automation systems on competitiveness. ([globenewswire.com](https://www.globenewswire.com/news-release/2025/11/26/3194869/0/en/New-Study-Reveals-11-28M-Annual-Opportunity-for-Industrial-Companies-to-Boost-Competitiveness-by-Modernizing-Closed-Automation-Systems.html?utm_source=openai)) The MEPCA Engineering article was published on January 28, 2026, which is over two months later. This suggests that the MEPCA article is a derivative work, summarising or republishing content from the Schneider Electric press release. The lack of new information or analysis indicates a lower freshness score.
Quotes check
Score:
4
Notes:
The MEPCA article includes direct quotes from Schneider Electric executives, such as Gwenaëlle Avice Huet. These quotes are identical to those found in the original press release. The repetition of these quotes without independent verification raises concerns about the originality and reliability of the content.
Source reliability
Score:
3
Notes:
MEPCA Engineering is a niche publication focusing on manufacturing engineering and process control automation. While it may be reputable within its niche, its limited reach and potential lack of editorial oversight reduce the overall reliability of the source.
Plausibility check
Score:
6
Notes:
The claims about the impact of closed automation systems on industrial competitiveness are plausible and align with industry concerns. However, the lack of independent verification and reliance on a single source (Schneider Electric) for these claims diminishes their credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The MEPCA Engineering article is a derivative work summarising a Schneider Electric press release from November 26, 2025. It lacks independent verification, relies on a single source, and does not provide new information or analysis. The content type and source reliability further diminish its credibility. Therefore, it does not meet the standards for publication under our editorial guidelines.
