Author: European Springs Web Team

In recent years, it’s fair to say that most industries across the UK have experienced some form of a downturn due to the political and economic climate faced by businesses. However, despite the worrying signs for most industries, the manufacturing sector has remained as strong as ever and continues to rival some of the biggest manufacturing nations from around the world according to recent research.

Data gathered by Make UK and Santander has highlighted just how strong the British manufacturing industry has remained, despite external factors such as Brexit and a struggling economy.

We take a closer look at the report and delve deeper into some of the reasons that the UK manufacturing industry has continued to remain so strong throughout 2019.

The UK Ranked 9^th Largest Manufacturing Nation in The World

The UK came in at 9^th in the global manufacturing table for a second consecutive year, which highlights just how stable the sector as a whole actually is. It’s worth remembering that the UK collectively has a relatively small population, one that isn’t even in the top 20 worldwide, which really heightens just how remarkable this achievement is.

The manufacturing industry makes up over 44% of the UK’s global exports, which is worth over £273 billion to the UK economy. It is worth noting that the industry continuing with the trend of exceeding expectations must carry on, even when the UK does leave the European Union, if we are expected to maintain pace with other countries in the coming years.

The sector employs 2.7 million employees in the UK and accounts for around £192 billion of output each year – an astounding feat for an industry that is seen by both the government and wider public as an industry that is in need of modernisation and is in decline. Despite the perception from around the country, UK manufacturers now actually account for 15% of total business investment and an impressive 66% of the country’s research and development spending.

This further highlights just how seriously the manufacturing industry is taking future developments for the sector, with Industry 4.0 in full swing and smart manufacturing technologies being utilised in more businesses across the UK each year.

The report shows that when compared to other countries, the UK ranks well in a whole host of categories, including:

• 10^th for exports of goods
• 7^th for trade
• 2^nd for service trade
• 9^th for GP
• 27^th for GDP per capita

It’s fair to say that the UK manufacturing industry is growing at an unprecedented rate, with a record number of jobs now available in the sector, investment is at an all-time high, and the sector is providing the overall economy with a real boost.

Made In Britain Thriving

Of the global exports, ‘Made in Britain’ products are a success story that has quickly become a global phenomenon – with £118 billion worth of products from this line sold each year to the US alone. There has also been a surge in the Asian markets becoming increasingly important, with China purchasing £23 billion worth of products annually.

The Made in Britain brand needs continued refinement and investment as we look to continually grow the total number of exports of products from this line each year. Beyond the manufacturing industry, Made in Britain, goods across industries are creating a real buzz worldwide. With products from the transport, automotive, chemical and pharmaceuticals, food and drink, machinery, metals, plastics and electronics all performing well on a global stage, the future does look bright for the UK, especially if a trade deal can be agreed with the European Union when the UK does leave the EU.

Here’s a list of the UK’s top 10 export and import destinations for manufactured goods in 2018:

1. United States – £118.2 billion
2. Germany – £55.4 billion
3. Netherlands – £44 billion
4. France – £42.1 billion
5. Ireland – £38.3 billion
6. China – £23.1 billion
7. Italy – £19.7 billion
8. Switzerland – £19.6 billion
9. Belgium – £19.4 billion
10. Spain – £17.6 billion

Here at European Springs, we continue to defy expectations and thrive as one of the UK’s leading spring manufacturers. By continually investing in the very latest technology and equipment, we have managed to keep on growing our business and product offering to our clients.

With AI, robotics and automation commonly viewed as at the cutting-edge of inspirational industry, it may come as a surprise that a significant number of enterprises don’t find that smart working is giving them the outcomes they want. Adidas’ recent decision to close its two “speed factories”, for example, is a powerful example of smart tech that just doesn’t seem to be giving the desired outcomes.

But why is it that so many manufacturers are unable or unwilling to move towards a smart factory model? Here we take a look at some of the main barriers to creating a factory where AI and automated working predominates, as well as some of the major benefits which a smart factory can bring.

Up-Front Costs

There’s no doubt about it, replacing traditional plant and processes with AI and robotic applications requires a significant financial injection. Whilst ultimately this may result in cost savings it can be years before the investment is recouped.

For many manufacturers, the promise of increased revenue following automation is theoretical rather than believable! Particularly in sectors where few companies have gone down the smart factory route, there may not be the concrete evidence to convince decision-makers that moving towards increased automation is going to deliver the required benefits.

Disruption To Current Workflow

Inevitably, the scale of change required to move a factory from a traditional model to Smart operation will require significant disruption. Not only is there likely to be a considerable period of reduced productivity whilst fresh machinery is put in place, but there is also considerable potential for further delays whilst workers learn how to interpret the data generated to ensure optimal results.

There are also inevitably going to be teething problems, particularly when attempts are made to mesh new technology with existing plant in order to create a seamless operation. Although ultimately the benefits may outweigh the drawbacks, in an uncertain economic climate the risk of failing to “hit the ground running” after conversion to a cleverer way of working can often be seen as too great.

Using Data For Maximum Results

The theory behind smart working is that the plant generates data, which skilled operators can then use to inform appropriate decision making. From planning maintenance schedules that deliver optimal results, through to making adjustments to product specifications in order to deliver smaller product runs or a greater diversity of products, the data produced can be used in numerous ways.

Unfortunately, without a workforce that understands how best to utilise the generated data, it’s unlikely that optimal results will be achieved. Similarly, if AI has been introduced piecemeal, there are many challenges to overcome in terms of data integration, storage, security and usage.

More Isn’t Necessarily Better

Although one of the key advantages of smart factories is commonly considered to be the potential for enhanced production, a changing marketplace means that this may no longer be a key priority for manufacturing businesses. Customers are increasingly demanding custom products that match their exact specifications.

For companies engaged in custom spring design or similar, the focus is frequently on creating one-off product batches. In such circumstances, being able to produce “more, faster” (which can be a key advantage of a smart factory), is of less importance.

Skills And Training

Inevitably, fresh technology requires workers who are up-to-speed with how it operates. Smart factories only reach their potential when there are suitable workers available to manage the various operations effectively. The nature of the technology is such that workers need to be comfortable with cross-silo working (for example, having expertise in both maintenance and production), as well as have the ability to interpret and manage large volumes of data.

The acquisition of the relevant skills can require time and investment. In addition, there is a need for a fresh attitude to the working environment, which can take considerable time to embed within an organisation.

Legacy Technology

If it’s not broke, don’t fix it, is an industry maxim! Many companies have invested heavily in a traditional plant, from which their workforce is able to extract impressive performance. For factories which are currently enjoying a good return on their investment and are meeting customer needs, there is little incentive to adopt fresh technology.

In addition, blending new tech with more established plant can create unexpected challenges. It’s often easier (and much cheaper) to fit out a fresh factory with new tech then it is to try and update or modernise and existing enterprise.

Negative Attitudes Towards Automation

There is a cultural resistance to the perceived “march of the machines” which can be difficult to challenge. Although current figures don’t lend weight to the assertion that “robots take jobs”, this is a viewpoint that’s firmly entrenched in many sectors.

Challenging this takes time and education, but may prove difficult, particularly when senior managers, CEOs and shareholders aren’t sold on the idea of a smart factory approach.

Smart Manufacturing Can Have Enormous Benefits

Robotic working and the use of AI reduces the potential for human error to an absolute minimum. Here are just a few of the other advantages that smart factory technology that your business should benefit from:

• Better Customer Care

Smart factory technology allows a much higher degree of responsiveness. For companies that wish to create a greater diversity of products, custom solutions or customer-focused solutions, AI and robotics can facilitate this, quickly and cheaply.

• Increased Efficiency & Maintenance

Machinery is faster, more accurate and doesn’t feel fatigue in the same way as a human workforce. With some smart factories able to work 24/7/365, it’s clear that the potential to create more for less is real.

Smart sensors have revolutionised the way in which maintenance is conducted, significantly reducing the risk of breakdown and allowing the creation of effective early warning systems.

• Greater Worker Safety

Robots have the ability to work in dangerous or hostile environments. Remotely controlled, they have the potential to remove workers from hazardous situations without compromising the work which needs to be done.

As one of the leading spring manufacturers in the UK, the team at European Springs & Pressings are keen to integrate as many smart technologies into our existing processes as possible. Over the last few years, we have made several changes to our processes and invested in the latest smart technologies to guarantee we continue to meet and exceed our customers’ demands.

Over the years the UK Manufacturing Industry has fallen behind its global counterparts with regards to productivity within the workplace. One of the biggest reasons for this fall in productivity is the skills shortage within the industry. UK based manufacturing businesses need to take action and start to consider upskilling their existing workforce, in order to mitigate the risk of a further decline in productivity across the industry.

Within this article, we will take a deeper look into the current issues faced by the UK manufacturing industry, whilst also offering some solutions you could implement into your business today.

The UK’s Aging Workforce

The aging population in the UK has had a knock-on effect on the UK Labour Market. In 2015 the Chartered Institute of Professional Development (CIPD) and The International Longevity Centre – UK (ILC), conducted a study. This study found that within the manufacturing industry, 33.8% of workers were over the age of 50, this translates to a total 1,041,542 workers.

The manufacturing industry has become increasingly reliant on the more experienced workers, as graduates simply don’t require the skillset required to take over their role. With the current outlook, UK Manufacturing businesses run the risk of developing large skills gaps and losing vital knowledge when the older portion of their workforce inevitably retire over the next 20 years. Without a robust plan in place to ensure that younger workers are upskilled, there are genuine fears over the future of many manufacturing businesses across the UK.

Research from a City & Guilds Group survey conducted in 2019 found some particularly some particularly worrying statistics when it comes to upskilling within the manufacturing industry. Some of the key findings in the report were:

• One in three people working in manufacturing didn’t learn any new workplace skills in 2018.
• 46% of respondents believe they get enough help and support to upskill from their employer.
• 80% of people working in manufacturing believe that it’s important to continuously update their workplace skills regardless of age.
• 48% of respondents feel that the skills they need to carry out their job will change significantly over the next 5 years.

Managing the Risk with Workforce Planning

By introducing a workforce plan, businesses can look to reduce the impact of the skills gap when older workers do eventually leave the industry. The plan you put in place should, at the very least, be able to address the following areas:

• Attracting new talent,
• Line manager capability
• Training & development

The first place you will probably look to plug the ever growing skills gap is by recruiting the right type of employees with a diverse skillset. Building a pipeline of potential employees can ensure that businesses are able to recruit from a diverse labour pool. Whilst you’re probably looking for experienced heads when recruiting solely to fill gaps left by retiring workers, it’s also worth considering how you can fill those gaps with younger workers too. Offering work experience opportunities via building relationships with local schools and colleges, as well as offering apprenticeships are effective in generating new talent, and you never know, you may just find yourself a new employee from utilising these methods.

Beyond recruiting from outside of your business, it’s also important to look internally for any employees who are showing a willingness to learn new skills. The capability of line managers can have a huge impact on the workforce and how they develop. They obviously play an integral role in managing the workforce day-to-day, so they can essentially make or break your plans. Managers should be able to coach workers and develop their knowledge with on the job training whilst also identifying opportunities to undertake formal training for their staff.

Health and wellbeing expectations of workers should be managed and met by Line Managers in a bid to reduce long term absence, as absenteeism can have a huge impact on an organisation. Particularly for the older workforce, where manual jobs can become increasingly more difficult with age, a structured health and wellbeing strategy in place can have a positive impact on workers’ attendance.

It’s extremely important that you educate all employees within your business that both performance management and training and development are not just tick-box exercises. Having a stringent performance management process in place will ensure workers are achieving or even exceeding their objectives, in line with the objectives of the business. Training and development can help employees of all ages to meet their performance objectives, and we can’t place enough emphasis on ensuring that you are consistently looking to upskill all members of staff, regardless of their age. The next big thing could well be just around the corner for the manufacturing industry, so ensuring that all members of staff are fully trained is essential.

Having a management system in place that is capable of identifying and initiating training and development opportunities for employees is an essential part of any plan and is a sure way to ensure that any potential skills gaps are plugged before they appear. Continuous on the job training and coaching as well as formal training will provide workers with the skills and knowledge required to cover absences and keep productivity at its highest when more experienced workers do end up retiring from the industry.

The Benefits of Investing in Automation

We live in an ever changing world, where technology and robotics are becoming more and more present in manufacturing businesses the world over. Young manufacturing workers have a significant advantage when it comes to adapting to any new technologies, simply because they have grown up in a world obsessed with going digital and automation.

Part of the reason why the UK is lower in terms of productivity compared to other manufacturing nations around the world, is simply because of there are less businesses in the UK who have taken the plunge and invested in automated technology. By looking to make investments into new technology and robotics, the UK Manufacturing industry would stand to benefit greatly in terms of productivity. These investments can also generate jobs for younger workers, whilst also opening the door for mechanical and electrical engineering apprenticeship opportunities.

As experienced spring manufacturers, the team here at European Springs & Pressings always take the time to keep a close eye on everything that is going on in the manufacturing industry. We understand just how important it is to ensure we are allowing our valued members of staff to continually upskill, in order to achieve their personal goals, whilst also ensuring the longevity of the industry as a whole. Be sure to regularly check in on our blog for the very latest news coming out of the manufacturing industry.