International Journal of Scientific Research and Engineering Development

This study investigates the impact of workplace automation, proxied by annual robot installations, on UK manufacturing productivity from 1990 to 2024, using manufacturing value added as the key measure. Grounded in Schumpeter's (2013) theory of creative destruction, it addresses a critical gap in sectoral analysis by examining automation's role amid labor shortages, economic shocks like the 2008 crisis and COVID-19, and mediating factors such as educational attainment, minimum wages, and GDP growth. Employing a semi-log GMM model with secondary data from the UK Office for National Statistics, the analysis incorporates pre-estimation diagnostics including descriptive statistics, breakpoint unit root tests, and Johansen cointegration to ensure robustness. Empirical results reveal a stable long-run equilibrium among variables, with GDP per capita exerting a significant positive effect on productivity, while automation's influence manifests indirectly through human capital synergies, echoing Graetz and Michaels (2015) findings of 0.36 percentage point’s annual labor productivity growth from robots across 17 countries. Cointegration tests confirm intertwined dynamics, and model stability diagnostics affirm convergence to equilibrium despite disruptions. These insights align with McKinsey Global Institute (2017a) projections of 0.8–1.4% global productivity gains, underscoring automation's potential to drive UK industrial resilience when paired with upskilling. The study advocates policy measures like expanding Made Smarter programmes and R&D incentives to accelerate adoption, alongside workforce training to mitigate displacement risks highlighted by Berriman and Hawksworth (2017). By fostering human-machine complementarity, UK manufacturing can achieve sustainable growth, positioning the sector as a global leader in smart production.

Samuel Abiona Olajide,"Analysis of Workplace Automation on Industrial Productivity in the UK" International Journal of Scientific Research and Engineering Development, V9(1): Page(179-188) Jan-Feb 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.