Welcome to Rail Industry Connected. Today, we delve into the findings of a comprehensive skills audit conducted by the Rail Innovation Group. This in-depth analysis shines a spotlight on the crucial role played by SMEs in powering innovation within the UK’s rail sector and how we can take those learnings to determine innovation in rail over the next few years.
The report reveals that these often-unsung companies are not just building components; they are the driving force behind the next generation of rail solutions. Their expertise spans a wide range of cutting-edge areas, from digital technologies and sophisticated data analytics to enhancing the passenger experience and boosting operational efficiency.
Key findings
Key findings from the RIG audit highlight the core strengths these smaller players bring to the table. They possess significant expertise in data science and artificial intelligence, offering the potential to optimise rail operations and inform crucial decision-making. Furthermore, their ability to draw inspiration from other sectors fosters cross-industry innovation, applying tried-and-tested technologies to unique rail challenges. And at their heart lies a culture of creative solution development, constantly pushing the boundaries of what’s possible.
Looking ahead, the report identifies emerging priorities within these innovative firms. There’s a clear interest in adopting advanced technologies like AI, robotics, the Internet of Things, and even quantum computing for future rail applications. A strong focus on the customer experience, including the development of Mobility as a Service platforms, is also evident. And crucially, the sustainability agenda is gaining increasing importance.
However, the audit also highlights barriers to development faced by these small and micro enterprises. Limited resources, often a reality for early-stage businesses, can restrict investment in training and upskilling. Regulatory hurdles and the complexities of cashflow associated with large rail contracts can also present significant challenges. Finally, the report identifies gaps in technical expertise, particularly in areas like advanced AI and complex coding.
Alongside that, companies ensuring they meet product approval requirements can provide further challenges and delays – and as we’ve heard from previous Rail Industry Connected episodes, being ahead of the process is crucial.
Skills in demand
So, what skills will be in high demand in the rail sector over the next three to five years? The RIG report points to artificial intelligence, advanced data analytics, and robust data governance as high-priority areas. Emerging skills include the Internet of Things, automation, and even leadership in diversity and inclusion.
In response to these findings, the Rail Innovation Group has put forward a series of recommendations for government support. These include fostering collaboration between established rail players and innovative start-ups, investing in targeted skills programmes for emerging technologies, and increasing R&D funding specifically focused on AI, data analytics, and sustainable practices.
The RIG also calls for the government to drive public-private partnerships, speed up regulatory reform to better support innovation, and enhance the focus on improving the customer experience.
Tips for SMEs
At Rail Industry Connect, we’ve also put forward some tips for SMEs to consider for bringing innovative products to the UK rail market. This is composed from advice provided from those undertaking the journey themselves.
- Understand the problem you are trying to solve – and that the problem actually needs solving – there are key issues in the railway sector, such as lack of skills, development of sustainable products, safety, digitalisation and cost saving efficiencies, that need addressing.
- Understand the rail market – the market is small, but it’s also split into many different disciplines – and rail specifically is very different to other industries. You’ll need to identify the right people and the size of the market to succeed.
- Be aware of all the processes – product approval on safety critical infrastructure can take time – be prepared for that to be an issue. If possible, it is worth testing products in other countries to prove the concept before coming to the UK – as the UK is ranked among the strictest. Make sure you have everything you need to expedite the product approvals process.
- Utilise innovator support mechanisms and funding – there are a plethora of programmes and funding available – and organisations like the Rail Innovation Group will support you with where to go on those. Many projects have succeeded on the railway from these initiatives.
The report underscores that addressing the barriers faced by these smaller companies and investing in their future skills will not only benefit the Rail Innovation Group’s members but will also be crucial for the overall performance and sustainability of the UK rail industry.
