Also, by acting as specialists in niche areas, startups can help fill the gaps caused by a growing industry skills shortage crisis. Of the survey respondents who had used startups before, 92% said they would do so again, highlighting their value to decision-makers.

Traditionally, large manufacturers can be hesitant to engage with the startup community, with the preference generally being to push production through the traditional supply chain, even for new and complex projects. In addition, there are always conflicting priorities between regular Business Unit operation and a desire for disruptive innovation. Large complex projects however have been shown to backfire. For example, in 2020 Volkswagen hoped to bring software development for their first all-electric vehicle in-house, rather than work alongside tech specific startups. The resulting workload and accompanying inability to source the needed skills for the job meant that VW had to delay its launch by several months, which had repercussions on their supply chain and future pipeline. Their strategy attempted to mirror the work of companies like Tesla, but a multitude of capable and available digital-native startups would have had the requisite skills to prevent this delay.

Much of the hesitation to work with startups comes from an unwillingness to share data with third parties and a culture that is not receptive to outside influence, but open innovation strategies often have the capacity to create value for all parties involved. If we want to see those benefits, however, we as the manufacturing industry need to provide the right supportive environment to empower and enable startups to contribute, which is not yet the case. In response to this, I have set up the Hexagon Sixth Sense open innovation platform, offering startups unparalleled access to the data and knowhow needed to develop solutions to everyday industry problems. For this sector to level up effectively, more of these programmes will need to become the norm, or else too many innovative and creative manufacturing startups will fail before they are even given the chance to prove themselves.

When done properly, collaboration between startups and industry leaders represents the greatest opportunity for industrial symbiosis in the current economic landscape. To the startup, a well-established manufacturer can offer not only the access to previously siloed data for R&D purposes but also monetary investment, and the start-up community already know how invaluable this is. But monetary investment is not enough. For many this kind of collaboration offers a unique chance to learn how to expand and scale business. Putting novel ideas and solutions to work on a macroscale is fundamental to showcasing their efficacy. Access to customers is the number one focus for most startups and this is where Sixth Sense is looking at the sweet spot for the fit between a large mature company and a startup.

For industry giants, the startup offers new skillsets ready for the digital, customer-centric age. Partnering with tech-native companies can allow each partner to play different roles to the best of their abilities, culminating in mutual optimisation. I think startups’ ability to provide agility and mobility is needed in multinationals’ board rooms, and more of them should be including them in their strategies.

The manufacturing industry has been a crucial part of modern economies for over 200 years, but it risks flat-lining if serious steps aren’t taken to avert its stagnation. Within our sector we can act as pioneers for tackling global crises like Net-Zero, plastic waste and sustainability, but to do this we have to work collaboratively. Open innovation is the key to this collaboration. Not only does it provide mutual benefit to all involved, from the most established manufacturers to the most fresh-faced startups, but it also creates value across the sector. Novel ideas and solutions come from data-sharing and next-generation thinking, not tradition and rivalry. The co-creation of economic value through these fundamental principles will become a pivotal topic of conversation in the coming decades as we begin to employ smarter manufacturing techniques.

If you want to level up your new business, and gain access to the skills, data, services and customers needed to do that, then take note that manufacturing giants are starting to realise your potential and could open the doors needed for your success.