The report, which was published ahead of the Scottish Budget’s “green reindustrialisation” leveraging £1.5bn investment in manufacturing and infrastructure, found that two thirds of manufacturers (66%) said use of data analytics made an overall positive contribution to efficiency. Over half (55%) of companies also said they were investing up to 10% of their total investments in digital technology.

Manufacturers perceived the main benefits of using data analytics to be more efficient use of resources (56%), improved productivity (49%), and improved labour efficiency (36%), bridging the industry’s productivity gap.

In addition, the Investment Monitor report, found that 58% of UK manufacturers think that digital technologies are increasing the need for high skilled labour, but 42% of manufacturers said lack of digital skills is the biggest barrier to adopting digital technology, followed by data integration challenges (39%) and high cost (31%).

The report also reveals that two fifths (38%) of manufacturers found the benefits of data analytics have exceeded expectations, highlighting the importance of both GB Energy and Skills England to create a skilled manufacturing workforce which drives economic and sustainable growth.

Stuart McCallum, partner and head of manufacturing in Scotland at RSM UK, said: “Despite the recent buzz around AI, less than a third of manufacturers view it as a crucial investment area right now. It was therefore encouraging to see the Scottish Government commit £321m to enterprise agencies supporting emerging tech including AI and robotics in the recent fiscal update. We know that data technology and analytics significantly boosts business efficiency, but the lack of digital skills remains a major barrier to adoption, productivity and overall economic growth.

“Scotland is paving the way in tackling this issue, with further private investment secured for a Centre of Excellence in Aberdeen to train skilled workers in collaboration with GB Energy, enhancing the region’s digital capabilities in renewable energy and manufacturing.”

He added: “Manufacturers have made their willingness to implement digital technologies clear, so government needs to work closely with GB Energy to deliver digital skills training and position Scotland as a leader in green technology and energy innovation. Collaboration between public and private sectors, investment in training programmes and partnering with educational institutions including North East Scotland College and the University of Aberdeen will accelerate the UK’s transition to net zero and drive economic growth.”