Use of robotics and AI systems was poor, with training of people in relevant digital skills well below what is needed to catch up, it was warned.
The report by Make UK and Sage said nearly half of British manufacturers identify a lack of technical skills as the biggest hurdle to improving their use of innovative advanced technologies.
Projects which do start often stall after implementation stage, because companies cannot find the help and advice they need to make the technologies work well.
Seamus Nevin, chief economist at Make UK said: “Time and again, we hear from small and medium-sized manufacturers that they’re keen to adopt new technologies, but are being held back by fragmented support, complex funding systems, and a lack of accessible, appropriate digital skills training.
“If we want to unlock a £150 billion boost to UK GDP by 2035, we must make it easier for SMEs to adopt automation and AI.”
A Government spokesperson said: “We are taking a range of actions to remove the barriers holding back growth and unleash the potential of AI in our economy, including through the AI opportunities action plan.
“Our modern industrial strategy has also introduced ambitious plans to drive growth and investment across the UK, and our Plan for Change will ensure our country continues to be the best place to invest and do business.”
