New research from Cebr for Virgin Media O2 reveals that enhanced rural connectivity could boost turnover for rural manufacturing businesses by over 7%, contributing an additional £8.8 billion to the UK economy. The analysis delves into how better connectivity might spur economic growth and revolutionise rural industries.
Nearly half of the manufacturing jobs are situated in rural areas, often distant from cities and urban centres. Current output data indicates the sector’s struggles due to the UK’s on-going productivity challenges, with a majority of manufacturers anticipating a decline in the UK’s economic conditions.
Technology offers solutions to some of these challenges, such as enabling advanced automation to minimise human error and machine failures and introducing wearable technology to enhance safety and efficiency. These innovations often depend on high-quality connectivity, traditionally scarce in rural locales.
The Great Rural Revival Report by Virgin Media O2, based on Cebr’s economic modelling, suggests that improving rural connectivity could elevate the UK’s economy by £65.1 billion and increase employment by 6.8%. Out of the four major economic sectors scrutinised, manufacturing stands to gain the most in terms of turnover growth and relative employment increase.
Approximately 16% of rural manufacturing business leaders surveyed for the report expressed their intent to adopt technologies like remote stock checking and fleet management technology. Effective utilisation of these technologies requires robust connectivity for real-time access to data, allowing for immediate action and operational optimisation.
Virgin Media O2’s collaboration with British Sugar showcases the impact of connectivity on manufacturing efficiency and productivity. For nearly two years, British Sugar has leveraged the UK’s first multi-site 4G (and 5G-ready) private network across Norfolk, Suffolk and Nottinghamshire. This network has facilitated the installation of IoT devices and the development of advanced ‘factory of the future’ applications, including AI integration for real-time operational monitoring and advanced robotics to enhance production processes.
Committed to improving rural connectivity, Virgin Media O2 is actively participating in the UK Government’s Shared Rural Network (SRN) program. Recently, the company expanded its 4G network to 50 additional sites and obtained planning permission for 100 more. While SRN upgrades progress swiftly, Virgin Media O2 urges policymakers, planning authorities and landlords to eliminate barriers, ensuring that rural communities reach their full potential.
Jeanie York, Chief Technology Officer at Virgin Media O2, highlighted the significant role of the manufacturing industry in the UK’s economy. She emphasised that enhanced connectivity could unlock an extra £8.8 billion in growth for rural manufacturing and potentially increase employment by nearly 8%. York reiterated the company’s dedication to extending network coverage in the UK, collaborating with various stakeholders to facilitate essential network upgrades for rural manufacturers.
