38 | Plant & Works Engineering www.pwemag.co.uk April/May 2026 Special Focus Industrial Automation Open automation is emerging as a key pathway to industrial competitiveness as manufacturers across the UK and Ireland face mounting economic and operational pressures. The UK and Ireland’s manufacturing landscape is world-class, but manufacturers are operating in an increasingly tough environment. Recovery remains uneven, costs continue to rise, and productivity is under strain. A recent Make UK survey has shown that 65% of manufacturers view escalating energy and employment costs as a direct threat to competitiveness, while skills gaps, transformation costs and legacy systems are holding back nearly two in five firms. At the same time, industrial electricity prices, some of the highest in Europe, are widening the UK’s automation gap and limiting the sector’s ability to modernise at pace. Industrial electricity prices stand at 18–20p/kWh in the UK and 24p/kWh in Ireland, compared with just 6–7p in the US and China. Against this backdrop, improving flexibility, reducing operational inefficiencies and accelerating digital transformation are becoming priorities for many manufacturers. One approach gaining traction across the sector is Open, Software-Defined Automation. The cost of closed automation systems Traditionally, industrial companies have had their hands tied with closed automation systems, leading to an over reliance of automation technologies from a single vendor to ensure compatibility and continuity. However, recent supply chain challenges have shown that this approach not only hampers productivity and efficiency, but it also highlights a host of hidden costs. These include increased downtime, inefficiencies and compliance issues, fragmented workflows and delay. A recent Omdia study found that this costs industry an estimated £8.41 billion ($11.28 billion) annually, equivalent to 4.5% of average turnover. However, small companies are bearing the brunt, with up to 25% in lost revenue due to their scale. By opting for Open, Software-Defined Automation (OSDA), hidden, recurring costs can be redirected into R&D and innovation budgets. It’s the reason that Schneider Electric, the global leader in digital transformation of energy management and automation, is calling for industry to adopt OSDA and unshackle themselves from single vendors. Richella Oderbrecht, Chief Marketing Officer Industrial Automation, Schneider Electric, commented:?“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 How open automation can strengthen competitiveness in UK and Irish manufacturing Open, software-defined automation is emerging as an approach being explored by manufacturers in the UK and Ireland as they respond to rising costs, skills shortages and legacy systems. By moving away from vendor-specific technologies, it can offer greater flexibility, help reduce inefficiencies and support digital transformation efforts, contributing to improved competitiveness in a challenging global environment. PWE reports.
RkJQdWJsaXNoZXIy MjQ0NzM=