Manufacturing Update - February 2022 by jetdigitalmedia

MANUFACTURING PDATE www.manufacturing-update.co.uk

February 2022

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MANUFACTURING UPDATE At the forefront of digital marketing, Manufactuing Update strives to bring its readers the latest in industrial manufacturing, in a format that provides the best usability and ease of use for it’s readers.

February 2022

Publication Director

Sales Director

Publishing House

Kane Weller 01843 580 460 Kane@engineering-update.co.uk

Tim Johnston 01843 448 443 tim@engineering-update.co.uk

Editor

Editorial Assistant

Jet Digital Media Ltd, Suite 1 & 2 Spratling Court Offices, Spratling Street, Manston, Kent CT12 5AN

Taylor Owens 01843 267 690 taylor@engineering-update.co.uk

Laura Sharpe 01843 448 443 laura@engineering-update.co.uk

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HMRC reports 16% increase in SME’s claiming R&D Tax Credits* We ask Henry Poultney of R&D tax relief consultants Fiducia to analyse HMRC’s annual published statistical survey of companies claiming R&D tax credits. HMRC’s latest published annual report on companies claiming R&D tax relief once again demonstrates an annual increase in the number of companies claiming this increasingly popular tax relief. Analysis of the financial year ending March 2020 shows a 16% increase in the number of claims for R&D tax relief to a total of 85,900 – with 76,225 of claims being made by SME’s. It is disappointing to note however that, despite year-on-year rises in companies claiming this valuable tax relief since the scheme was introduced in 2001, a significant number of companies who invest in research & development still fail to claim what is rightfully theirs.

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And nowhere is this more true than in the manufacturing sector. Whilst HMRC’s statistics show that the manufacturing and information & communication sectors lead the way in terms of the number of claims submitted, the actual percentage of manufacturing companies submitting claims is astonishingly low.

When you consider that the average value of R&D credits paid to SME’s by HMRC in the year to March 2020 was £57,723, why is it that so few companies that are entitled to claim, fail to do so? To put this into context, a briefing paper published in December 2018 by the House of Commons Library Research Service, suggested there are 290,000 active manufacturing companies in the UK. HMRC’s statistics show that less than 7% (18,898) of these manufacturing companies claimed R&D tax relief in the year to March 2020.

February 2022

HMRC R&D Statistics for 2019-2020 •

76,225 SME’s claimed R&D tax relief

•

Average SME claim value amounted to £57,723

•

16% rise in number of SME’s claiming

•

25% rise in first-time claims from SME’s

•

More than £4.4 billion of tax credits awarded to UK SME’s

When you consider that the average value of claims paid by HMRC in the year to March 2020 was £57,723, why is it that so few companies that are entitled to claim, fail to do so? The reasons are many. Despite the year-on-year increases in take up of the scheme (HMRC reported a 16% rise in first-time claimants in the year to March 2020), awareness and understanding of the scheme remains low. Many business owners who are actually aware of the scheme fail to make a claim – despite the massive cash boost it can create for a business – because the owner is so wrapped up in the day-to-day running of the business that he/she are not able to set aside an adequate amount of time to formulate a claim. (I refer to it as a massive cash boost because of HMRC’s two-year rule that allows companies to backdate claims for their two previous financial years).

For many busy company owners, the major stumbling block to submitting a claim is the need for the claim to be supported by a technical document that defines how their own R&D activities satisfy HMRC’s claim acceptance criteria. And this is where specialist advisers such as Fiducia can take the burden of formulating a claim away from the business owner. With a 100% claim success rate, we can usually determine whether a company’s activities are likely to qualify for the R&D scheme with just one relatively brief telephone call. Check our website to find out more and give us a call to establish if your company qualifies for this valuable tax relief.

www.fiduciaconsulting.com 01244 689311

* Source: National Statistics – Research and Development Tax Credits Statistics - September 2021

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reparing DCs for the coming year means understanding the onslaught of potential new business. Online sales are expected to exceed $1 trillion in 2022, according to eMarketer, which is a milestone that was not originally projected to be reached until 2024... This unprecedented growth and the labour shortage, DCs must address the management of their processes now going forward... As customers continue to demand faster delivery, DCs are forced to have more inventory on hand than ever have before. “Just in time” inventory strategies no longer cut it. In 2022, DCs will pivot to “just in case” inventory strategies that will help reduce or prevent future supply chain disruptions. By holding more inventory, DCs will attempt to avoid inventory shortages faced in 2020 and 2021 due to global supply chain interruptions. Once the supply chain begins to return to normalcy, DCs will slowly transition back to typical “just in time” inventory strategies.

What’s trending for Distribution Centres in 2022 UK Distribution Centres (DCs) in 2022 have some major challenges if they want to keep up with demand and unprecedented rapid e-commerce growth, plus Covid-19 and Brexit has increased labour problems, which is leaving DCs struggling to find qualified workers.

Many DCs were built to pick cases of goods, place them on pallets and ship them to retailers. But now, DCs must not only fill retail shop orders, but also send out – one item, rather than a case of items – directly to a consumer.

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To successfully fill online, in person and phone customer orders, as well as orders for retail shops - all at once and as quickly as possible – DCs are seeking new fulfilment strategies in an effort to pivot from a classic distribution model to omni-channel distribution. More and more retailers will be utilising existing brick and mortar shop locations for fulfilment. DCs will leverage existing retail shops (or locations that have recently closed) into micro-distribution centers that are closer to customers, resulting in quicker delivery. This does come with a unique set of challenges – inventory visibility across locations, order fulfilment routing and disrupting the in-store customer experience. By 2023, same-day delivery is expected to be the standard for most e-commerce purchases, a direct result of customers who prefer to use their mobile devices for purchases and expect immediate delivery.

February 2022

In the meantime, you need to figure out how to accommodate more inventory in the short-term – and automated storage and retrieval solutions can be a great solution. A consequence often overlooked are returns. As e-commerce retail sales are expected to increase yet again this year, so will returns. In response, DCs will be forced to focus on growing returns, particularly by streamlining the returns process to be more efficient. In 2022, DCs will look to implement automated returns processes (also known as reverse logistics) to help them identify returned items quickly, assess the items for restocking and return the value of the item to the customer. All of this is impacted by the demand for space, DCs will look to utilise automated storage and retrieval systems to “build up” existing facilities – utilising ceiling height to get more space in the same footprint. For older buildings with shorter

ceiling heights, these solutions can be built within an outside enclosure and accessed from within the building to create more space. As evidenced by each of these trends there is no doubt about it – DCs need to evolve to survive. Embracing innovation while creating a more flexible fulfilment strategy is going to help overcome the labour shortage, supply chain disruption and rapid e-commerce growth in 2022. As you prepare for the year to come, consider implementing automation to modernise your operations. Kardex Remstar offers automated storage and retrieval systems to enhance throughput and expand storage space. Kardex Remstar solutions will help overcome these challenges and provide the flexibility you need in the future. To download the free Distrubition Centres white paper please click here

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Lamonde Automation Limited Quality Products: Expert Advice

Toyota Material Handling and Interroll automate Imnasa’s distribution center in Spain Sant'Antonino, Switzerland/Girona, Spain, October 5, 2021. Toyota Material Handling and Interroll, have installed a powerful and efficient conveyor system for Imnasa in Campllong near Girona, Spain. Core components of the new materialhandling solution are the Modular Conveyor Platform (MCP), the RollerDrive EC 5000 and the MultiControl from Interroll. The state-of-the-art system, which spans around 360 meters, automates the flow of goods between two buildings, increases productivity, and improves customer service as well as the working environment of the personnel deployed.

The automated conveyor system for Imnasa was fully designed and installed by Toyota Material Handling. Imnasa manufactures and distributes nautical equipment from numerous brand manufacturers to businesses and private customers. With a range of over 30,000 different products, it is one of the leading players in its sector in Europe. The starting point for the new solution was the construction of a new building complex of 9,000 square meters expanding the capacity of Imnasa’s distribution center.

Manufacturing PDATE

To seamlessly integrate the different work processes within the already existing and new buildings, the two sites were connected by a 360-meter-long conveyor system in a tunnel. Using a zero-pressure-accumulation materialhandling solution, the diverse goods are thereby automatically routed between the picking area in the existing building via the respective packing stations to the shipment area in the new building. "The new solution has not only enabled us to significantly increase the capacity and productivity of our distibution center. We have also succeeded in further increasing customer satisfaction

February 2022

through faster and more reliable deliveries. In addition, the new solution now offers our employees significantly improved work ergonomics," explains Pol Revuelta, Project Manager at Imnasa. A total of around 250 EC 5000 RollerDrive and 120 MultiControl from Interroll are used for the energy-saving transport of boxes and totes via driven roller and belt conveyors. "Thanks to the excellent and smooth cooperation of all parties involved, the entire project—from planning to commissioning—was realized in a short time. The quality and modular flexibility of the Interroll products as well as the commitment of the Interroll experts involved played a key role in this success," reports Ana Lorente, Project Manager at Toyota Material Handling. Contact: Martin Regnet Interroll (Switzerland) AG Head of Communications & Investor Relations Via Gorelle 3 | 6592 Sant'Antonino | Switzerland media@interroll.com www.interroll.com

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The solution to programming in manufacturing

~ The advantages of low-code and no-code robotics platforms in manufacturing ~

Manufacturing PDATE

he manufacturing industry is currently experiencing a shortage of science, technology, engineering and mathematics (STEM) skills. At a company level, this can cause a decrease in innovation and reduce profit margins. This skill shortage is apparent in the UK manufacturing and engineering sectors, where 85 per cent of managers reported struggling to find a suitable candidate. Could low-coding and no-coding robotics be the key to solving the sectors skill shortage? Here Neil Bellinger, head of EMEA at automation parts supplier EU Automation, discusses the use of low-code and no-code robotics in manufacturing and the advantages of this technology. The transformation to programming as we know it through the introduction of low-code and no-code platforms makes the implementation of robotics in automation more accessible. Lowcode and no-code robotics simplifies complex programming using visual modelling and drag-and-drop user interfaces. Therefore, little to no programming knowledge is required. Low-code automation platforms usually comprise built-in visual modules which are quick and easy to use. However, these platforms do require some coding knowledge

February 2022

when implementing complex or specific interactions. Although those with no coding experience can use low-code automation, there is still a need for coding at points. No-code automation platforms, on the other hand, require no coding knowledge. Users instead automate processes through graphical user interfaces rather than traditional programming. The interface works via drag-and-drop boxes that imitate user interactions with a computer. These platforms completely remove the need for technical knowledge and are designed to accelerate the automation process. Advantages of application Low-code and no-code robotics applies to various processes in the manufacturing industry, from material handling to welding. For example, due to the easy-to-use format of no-code platforms, robots can be reprogrammed easily for different jobs via the adjustment of their arm. While companies would once require multiple robots, now a simple adjustment can be made by a non-technical person, saving companies time, space and money. One of the ways this technology benefits the manufacturing industry is by addressing the STEM skills shortage in the industry. The use of low-code and no-code platforms

in manufacturing increases the flexibility and autonomy of automation. The high level of feature richness and integrations allow for the automation of any process to meet the companies demands, providing more opportunities for employees and potential employees with no technical background. The application of no-code robots and cobots can benefit manufacturing companies through a higher return on investments (ROI), decreased operating costs, and improved reliability and precision. However, this kind of investment may prove expensive for smaller manufacturers due to the initial cost of implementing these robots. The trend of low and no-coding platforms is rising, with 84 per cent of enterprises in the US, UK, Canada and Australia implementing low-code development platforms to lessen coding needs. This interest in low and no-code is likely to rise in the future. At EU Automation, we always look for the latest trends in automation. From HMIs and displays to motors and encoders, we provide for all needs, helping manufacturers progress and democratise the field of robotics. To find out more about our list of products, head to www.euautomation.com/uk.

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February 2022

This month Engineering Update editor Taylor Owens sits down with Chris Slay, Director of Skill Provision. We discussed the continuous issue regarding skill shortages within the engineering sector. Hi Chris, thank you so much for taking the time out to sit with us today. I would like to firstly ask for a brief introduction to Skills Provision. Can you give our readers an insight into what you do as a business?

heavy so many clients chose to outsource. Again, we can introduce you to specialist lawyers that will undertake the work for you, but original documentation must come from the employer.

A – We are a global recruiter. Through our network we currently cover 187 countries which is about 95% of the world. If a client needs to move very quickly into a new territory, we can get this underway within days in most sectors using “employers of record”. Whilst partners manage this aspect we get stuck into the recruitment once we have been fully briefed by the client and we are confident they are ready to recruit.

Couple this with a recruitment contract and the search for new talent can start but realistically from the date of signature of a contract and getting the license underway you need to allow 60-90 days for delivery. Reinforcing the need for proper corporate planning.

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Q - We are aware there has been a shortage for some time within the engineering sector here in the UK. Can you let our readers know what your mission is to bridge the gap? A – Largely education. The government has provided tools that cover virtually every job description within in the engineering sector but there are processes that are unavoidable that have to be followed and costs that need to be paid but it is a clear pathway to tackling skills shortages here in the UK but it needs detailed corporate planning and commitment which is something UK PLC has not had to do previously when there was visa free access to European Union nationals. Put simply as an Engineering company leader you need to get in an application into the government for a license as soon as possible if you see hiring challenges ahead. None of it is complicated but it is paperwork

February 2022

Secondly automation. In business every time you touch something it costs you money. Are processes necessary? Do they add value? Can they be automated reducing or changing the workforce need? Q – Aren’t you shooting yourself in the foot here? If processes are automated will recruitment services be required? A – At Skills Provision we play the long game. Ultimately the stronger our clients are the better it is for us. Requirements will change as routines are changed and lower-level jobs are eliminated raising the quality of people needed. This helps both our clients and Skills Provision, but the full benefits cannot be covered in a short interview. Q. What are the costs? A – It is not cheap, and it isn’t fast. Let me provide you will a table that you can share with readers. This we will try to simplify, but it takes some comprehension even if you are dealing with this on a daily basis. This is why we offer a cost-free consultation, but definitive numbers can not be given

until a client decides on the offer they wish to make. What employers need to think about is that without the right employees the business future is grim, especially with an aging workforce and a lack of local skills. Do employers really have an option? Even with full government support it will take at least a decade to replace lost skills let alone developing those needed into the future. We all now live in a global village and UKPLC is competing for skills internationally and contract offers need to be internationally competitive. Skilled employees have free choice and will understandably chose the best overall package available to them. We are here to help and aim to grow our businesses together with our clients. Q - We are now two months in to 2022. What changes would you like to see from government to entice young people to start a career in engineering? A – It would be lovely to think that the government is some kind of fairy godmother with an answer to everything but there is one thing they should do in my opinion and that is to look at the STEM shortages (science, technology, engineering and mathematics) + healthcare and say that if graduates work for British industry for a set period their student loans would be written off over say 5-10 years. We seriously need to grow our own talent. Q - Do Employers need to engage with an immigration expert on visa processes immigration ?

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Q - One thing we are an advocate for here is women in engineering, are there any initiatives to look out for in the industry to get more women involved? A – With the use of technology this will come. Again, employers should hire the bast candidate irrespective of gender. Q - At Skills Provision we know that you and the team work tirelessly to involve as many people as possible to learn new skills, do you have anything for the engineering sector that our readers should be looking out for?

Also, what is the best way to get in contact? A – There are about 1.2 million businesses in the UK but less than 50,000 hold licences either through a lack of awareness of the Skills Shortage list or the unwillingness to roll up their sleeves and to get on board a process that will solve their skills shortages. A strange statement to make but that is the reality as we approach Spring 2022. Fastest way to make contact is to use the chat facility or a contact form at www.skills-provision.com

you send a message to young people who are aspiring to join the world of engineering? A – The UK lead the industrial revolution. Brits are some of the most creative innovators in the world of Engineering, but historically the UK Government has been slow to support British entrepreneurialism. Getting Engineering skills will set you up for life whether you want to work in the UK or globally. Use your time well at university and look at future fields like automation and robotics which are the future of engineering.

Thank you very much for your time today, Chris, it has been a pleasure speaking with you. In summary, can

February 2022

Manufacturing PDATE

It is a complex area and we work with specialist partners such as Silk Route Legal which provide the table for this article. Immigration is a legal process and professional advice, whilst optional, is recommended.

Systems aid thermal processing for drinks manufacturers Hall 4.1, Stand: C051

Manufacturing PDATE

As the Anuga FoodTec event makes a welcome return in 2022, HRS Heat Exchangers will be showcasing its DSI Series of Direct Steam Injection pasteurisers and sterilisers.

Developed in response to the rising global demand for plant-based ‘milk’ drinks and products, the DSI Series joins the existing HRS range of pasteurisation and sterilisation solutions. The benefit of sterilising using direct steam injection is the speed of the process, with sterilisation temperatures of 100 to 145 °C. being reached in around a second, much quicker than the fastest heat exchanger systems.

such as soups and sauces, non-dairy creams, and starch-based products.

For products such as plant milks, this rapid heating prevents cooking of the product and formation of carameltype compounds which can darken the product or produce unwanted flavours. Some products, such as oat milk, also benefit from the additional dilution with water which the steam injection provides.

The IC Series features a roller conveyor which feeds individual drums into a tipper that empties them into the crusher. Here, a specially designed spiked roller crushes the solid ice into an icy slush, which is then transferred to the IM Series re-melting device. Capable of handling up to 60 drums (12,000 litres) per hour, the HRS I Series uses a number of HRS heat exchanger technologies together with ice crushing to re-melt both large and small chunks of ice, providing optimal rates of heat transfer and energy efficiency.

Direct steam injection isn’t just limited to the production of plant milk. It is also suitable for a range of extended shelf life (ESL) dairy products as well as ow viscosity products with small particulates

February 2022

The DSI Series is not the only recent innovation for drinks manufacturers from HRS. The new HRS I Series offers de-packs and crush (the IC Series) and melt (IM Series) frozen fruit juice (a process also sometimes known as re-melting) ready for storage or further processing.

You can learn more about HRS Heat Exchangers’ comprehensive range of thermal systems for food and drink manufacturing on Stand C051 in Hall 4.1 at Anuga FoodTech in Cologne, between the 26th and 29th April 2022.

The new Interroll Split-Tray Sorter Fast, flexible sortation for everyone Interroll introduces the new Split-Tray Sorter: the perfect solution for small and mid-sized items. Efficiency and low maintenance make this new sorter attractive for those looking for lower operating costs and quicker return on investment. It is an ideal solution for the 3PL , E-Commerce, Fashion and CEP industries. Easy to install and reliable with its proven mechanical components & integrated control solution Lightweight and energy-efficient - with a single motor every 40 meters Compact but dense footprint with plenty of destinations Extremely quiet with only <70 dB(A) noise levels

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Powering logistics digitalisation Specialist battery manufacturer releases whitepaper exploring role of batteries in the digitalisation of logistics

Manufacturing PDATE

In light of the high-profile challenges faced in supply chains since March 2020, there is a growing need for digitalisation and greater automation in logistics, intralogistics and warehousing. Reliable power is critical in this, but it is something that Ultralife Corporation, a global manufacturer of batteries for many and varied industrial applications, argues is often overlooked. The company has recently produced a whitepaper exploring the digitalisation trend in logistics, which highlights the battery requirements of popular modern logistics technologies. The whitepaper is available to download from Ultralife’s website. Interest in logistics digitalisation has grown significantly following the COVID-19 pandemic, with labour shortages, elevated demand and component shortages putting strain on operations. Among the principal technologies gaining traction are intralogistics pick-and-place robotics, automated guided vehicles (AGVs) in warehouses and asset tracking tags. Batteries and uninterruptible power supplies (UPSs) are essential in modern logistics devices. However, the requirements of these components are constantly evolving, which engineers must be aware of to ensure reliable and consistent performance. Ultralife’s

February 2022

whitepaper aims to demystify the requirements of batteries for logistics applications, outlining the most beneficial technical specifications and chemistries for each. “New and advancing technologies are proving invaluable in helping the global logistics industry to overcome demand pressures,” explained Robert Brown, marketing executive at Ultralife Corporation. “These technologies are designed to improve efficiency and effectiveness, but this can only be achieved with a reliable source of power. Unfortunately, the evolving state of technology means that the battery requirements continue to change, so many design engineers may not be aware of the best characteristics. “In the whitepaper, Ultralife explores the context behind logistics digitalisation — why it is happening, what challenges are being encountered and how that is affecting robot and device design. This background ties directly into the performance requirements of applications, such as RFID asset tagging, and in turn the battery properties that are best suited.” The whitepaper also references the commercial off-the-shelf (COTS) battery ranges that have been developed by Ultralife Corporation to exceed

the standard requirements of many robotics and devices. The ranges of primary and secondary batteries have been developed with the ideal energy densities, discharge profiles and mechanical properties to provide reliable power in challenging logistics environments. “Our whitepaper highlights some of the COTS ranges of batteries that Ultralife has developed to give design engineers a strong basis to work from,” continued Brown. “However, complex applications will require batteries that are tailored to offer more unique characteristics. For example, an application may need a battery with an irregular footprint, or one that can operate at extremes of temperature. “Ultralife has worked with engineers globally to develop bespoke battery packs and chargers that meet requirements that might not be achievable with a COTS product. This whitepaper highlights examples of applications where bespoke or off-theshelf power might be selected.” Design, automation and maintenance engineers that are involved in the logistics, intralogistics or warehousing sectors can download the whitepaper from the Ultralife Corporation website.

Reduce unscheduled shut downs, reduce maintenance costs and improve plant safety with our Valvescan Diagnostic Monitoring System. Our revolutionary system is an end-to-end solution that captures data from every valve operation, analyses it and provides targeted alerts on the valve health without any requirement for involvement from plant personnel or any potential impact on the asset real-time control integrity. It is a true IIoT solution for automated valves. This system is not only a pioneering development in valve monitoring, it is also; ● Cost effective and easy to install ● Works with all existing valve systems ● Enables data retrieval and transmission to the cloud ● Provides a ‘real time health’ check on the valve and alerts when performance drop off is detected

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