British Businesses Seek Productivity Surge as Tech Adoption Strategies Gather Pace

The drive to boost productivity through technology adoption is gathering momentum as UK business leaders urge policy support for proven initiatives. Ambitious public and private investment in digital solutions is becoming a central theme amid concerns over tepid economic growth and mounting pressure on national competitiveness.

Calls for action intensified at the recent Building Societies Association event, where Rain Newton-Smith, Chief Executive of the Confederation of British Industry (CBI), pressed for government backing of a technology adoption scheme that has delivered significant returns in manufacturing. The CBI’s push follows new evidence that targeted support for tech uptake can unlock substantial economic gains, offering much-needed optimism for a sluggish growth outlook in 2025.

Mounting Economic Headwinds Intensify Focus on Technology

Newton-Smith warned of macroeconomic risks, referencing the International Monetary Fund’s assessment that new US tariffs represent a ‘major negative shock’ for global trade. Financial institutions such as Goldman Sachs and JP Morgan foresee up to a 60 per cent risk of a US recession, with UK GDP growth expectations recently revised downwards to 1.1 per cent for the year. These factors have catalysed renewed attention on productivity-raising measures and digital investment by both business and government.

In this climate, the CBI CEO cited the long-term stability and community role of building societies and mutuals, highlighting both their history and their need to adapt to current pressures through enhanced digital capability. Newton-Smith noted: ‘Building societies and mutuals, all of you here today, are the true pillars of thousands of high streets and communities, up and down the UK. The definition of business as a force for good.’ This sentiment reflects the sector’s recognition that ongoing success now hinges on their ability to deliver new digital services while maintaining member trust.

Results from Made Smarter and Cross-Sector Potential

The Made Smarter programme, launched in 2019 in the North West, has provided a blueprint for accelerating tech adoption in UK manufacturing. According to Newton-Smith, the initiative has delivered £8 return for every £1 of public investment. Early government funding of £6.4 million unlocked more than £22 million in private investment, and is projected to add over £242 million to local economies while creating more than 1,500 jobs. These results align with wider findings from recent studies indicating that strategic technology adoption remains a critical lever for closing the productivity gap with international rivals.

Case studies cited during the event illustrate practical benefits: an aerospace manufacturer using digital twins technology has expanded production capacity, while firms in the consumer goods space have achieved up to 20 per cent productivity uplifts through real-time analytics. The CBI’s own research suggests that just 25 per cent of small businesses adopting new technologies could add £45 billion to GDP by 2030, underscoring the broad commercial opportunity.

Building Societies: At the Crossroads of Digital Change

Amidst sector-specific challenges, building societies now face rising member expectations for banking apps, digital branches and new channels for customer support. Extending the Made Smarter approach into financial services and other sectors forms a key part of the CBI’s recommendations ahead of the government’s Spending Review. As Newton-Smith told attendees, ‘For building societies, it’s about helping you build the branch of the future. Support vulnerable customers. Expand apps and digital tech. Attract new markets. New customers. Doing that right across the economy.’

Sector analysts have noted that building societies lag larger banking peers in digital capability, putting a premium on schemes that offer tailored guidance and financial support for tech adoption. The push to modernise comes at a time when peer institutions across Europe and North America are rapidly expanding investment in digital onboarding, artificial intelligence and cloud migration – trends reflected in recent technology trend reports in banking .

Spending Review as a Crucial Juncture

The forthcoming government Spending Review will determine whether successful programmes like Made Smarter can be scaled beyond manufacturing. The CBI argues that extending public funding and targeted advisory support to other sectors, including financial services, will be necessary to unlock wider economic benefits and close the gap with leading tech-powered economies.

The policy debate takes place as UK business investment remains subdued, though digital adoption is widely viewed as a counter-cyclical driver of growth. Newton-Smith highlighted that, ‘When it comes to the fruits of that technology – the productivity gains, we are not leading, we are lacking.’ Market observers expect that a strategic commitment to tech adoption support, particularly for small and mid-sized enterprises, will remain a key theme in economic policymaking for the rest of the decade.

Outlook: Productivity Growth Remains the Priority

With the global trading environment unsettled and GDP forecasts under strain, UK business faces limited options for sustainable growth. Stakeholders across finance, manufacturing and services agree that accelerated digital adoption and upskilling are vital to step-change productivity. The CBI’s recommendations position technology support as a national interest imperative rather than a discretionary spend.

As policymakers weigh the outcomes from targeted funding programmes like Made Smarter, attention now turns to whether similar approaches will become standard for sectors such as financial services, retail and logistics. The question is not whether to support digital investment, but how to scale what works across the economy – ensuring that the UK retains its competitive standing and delivers wealth gains for communities nationwide.