UK factories could unlock £129bn in hidden capacity

A recent report from FourJaw Manufacturing Analytics reveals that UK manufacturers have the potential to tap into an astonishing £129 billion in extra annual output by better utilizing the hidden production capacity already present in their operations.

The report, titled Return on Information, highlights that these productivity gains can be achieved without the need for hefty investments in new equipment or hiring more staff. This presents a cost-effective way for manufacturers to boost productivity, especially in light of the growing financial and workforce challenges they face.

Published on March 16, 2026, the report emphasizes that limited funding and ongoing skilled labor shortages are pushing the manufacturing sector to adopt affordable digital technologies more rapidly. It forecasts that tools like data analytics will emerge as the primary catalyst for enhancing factory performance over the next three years.

Data is becoming a crucial digital focus

The research included in the report indicates that data has risen to the forefront of digital priorities for manufacturers, with at least half already incorporating analytics across all key departments.

The benefits are clear: improved productivity and more efficient resource use are among the most frequently mentioned advantages. Industry organizations referenced in the report note that small and medium-sized manufacturers (SMEs) have already seen productivity boosts of 10–15% thanks to analytics.

According to FourJaw’s findings, larger manufacturers that implement best-practice production data strategies—like real-time monitoring on the factory floor—typically enjoy a 16% increase in output.

For SMEs, the productivity gains can be even more significant, often reaching as high as 30%.

Based on these estimates, FourJaw believes that if more manufacturers across the sector embrace these practices, they could potentially unlock:

• £67 billion annually for large UK manufacturers
• £62 billion each year for SME manufacturers

However, it seems that factory floor data is still not being fully utilized.

Chris Iveson, the CEO of FourJaw Manufacturing Analytics, shared his thoughts:

“Today, nearly every manufacturer is under pressure to improve efficiency, but with rising costs, limited capital, and labor shortages, sticking to traditional productivity strategies is becoming increasingly challenging.”

He went on to say:

“For many organizations, the factory floor remains a mystery. There’s a wealth of production data out there, but without the right tools to analyze it, manufacturers find it tough to pinpoint where time and capacity are slipping away.”

He added:

“Those manufacturers who take a systematic approach to their production data are uncovering significant hidden capacity within their current operations. The benefits can be considerable, often without the need for hefty investments in new machinery or facilities.”

Three best practices for uncovering hidden capacity

The report highlights three key operational practices that manufacturers with the most notable productivity gains tend to share:

1. Prioritize essential data

This means focusing on crucial production metrics like:

• machine utilization
• downtime
• energy consumption
• machine-level profitability

1. Achieve complete factory visibility

Manufacturers should aim to merge machine data with operator insights to create a cohesive, real-time picture of overall factory performance.

3. Embrace data-driven continuous improvement

Leveraging operational insights to identify and tackle the root causes of lost production time can lead to more effective and sustainable productivity enhancements over time.

A cost-effective path to manufacturing growth

The report suggests that for many manufacturers, the next big opportunity for productivity might not come from large capital investments, but rather from gaining better visibility into their existing factory operations.

By improving how production data is captured, understood and acted upon, manufacturers may be able to unlock substantial additional output from the assets and teams they already have in place.