Future of Manufacturing - Q4 2022

Future of Manufacturing

“The pressure to meet targets means businesses could be tempted to cut corners.”

Malcolm Harrison, CEO, Chartered Institute of Procurement and Supply

“If we are serious about kickstarting economic growth, it begins with connecting people with these opportunities.”

Bhavina

Bharkhada, Head of Policy and Campaigns, Make UK

Driving economic growth by meeting the skills needs of UK businesses

We’ve often heard about the chronic skills shortage facing the manufacturing sector. But as a result of a combination of factors — from Brexit to the Covid-19 pandemic — the sector now faces an immediate labour shortage.

With immigration as a lever that the Government remains reluctant to use, one of the solutions the Government is turning to is the new T Levels.

Industry placement for students

T Levels are two-year, technical qualifications at Level 3, aimed at students aged 16. They combine technical knowledge and practical skills, by including an industry placement of at least 45 days with one or two employer(s), that students have to complete — and the industry placement element is crucial.

The appeal of vocational and technical education for the manufacturing sector does not come from the ability to ‘train quickly,’ but rather, the need to develop a pipeline of talent with the right combination of technical skills and in-work experience, over time.

Despite the clear advantages, the take-up of T Levels has been slow — particularly the number of employers offering the industry placement for students. Make UK research, in partnership with EngineeringUK, found that currently, only one in ten (9%) of engineering and manufacturing employers is hosting a T Level placement and just 12% plan to in the coming year.

he Office for National Statistics (ONS) estimates show there are currently 91,000 vacancies in the manufacturing sector — even higher than in the construction sector.T Levels are two-year, technical qualifications at Level 3, aimed at students aged 16.

More work experience

The pipeline to engineering and manufacturing careers is lacking in more than just numbers. We need to make these pathways as accessible as possible to young people of all backgrounds, to ensure that we are meeting the future skills needs of UK businesses.

If we are serious about kickstarting economic growth — it begins with connecting people with these opportunities.

There has never been a more important time for our sector to pull together and to work together, to create a shared agenda and Manufacturing and Engineering Week will do exactly that. I am delighted to be part of the Advisory Board and that MAKE UK are a partner of this groundbreaking event.”

your interest here: www.mandeweek.co.uk/ register-interest Find

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Phipson CBE, Chief Executive, MAKE UK and M&E Advisory Council Chairman

How new skills talent is helping aerospace soar into the future

industrial systems are set to play a big part in the industry in the years ahead.

“For example, robotics will provide the sector with an opportunity to increase repeatability and efficiency, reduce costs and provide safer working environments,” he says. However, he also notes that despite its cutting-edge innovation, the sector will only ever be as good as its people.

Whatever route new applicants take, they don’t need to be experts at the beginning of their careers.

Fulfilling and rewarding career that is open to everyone

To support the future needs of a multi-skilled workforce, the company also offers various apprenticeship programmes to build that new talent.

Aerospace manufacturing is recruiting the variety of skills it needs from a wide talent pool. There are various routes into the sector, from apprenticeships to graduate programmes.

There’s never been a better time to join the aerospace industry, insists Jerome Blandin, SVP and Head of Airbus’ Broughton Plant, where nearly half of the world’s wings are built. That’s because it’s soaring into a sustainable future.

Designing this sustainability requires a step change in our approach, a vast range of skills from a broad pool of talent — therefore, career opportunities are everywhere you look. “We need people with hands-on, practical assembly skills,” explains Blandin. “We also need the next generation of engineers to lead the transformation of our industry. Airbus is investing heavily in end-to-end digital solutions and cutting-edge technologies that will help deliver the next generation of sustainable aircraft. Plus, we have a demand for creative problem-solvers and people with IT and commercial skills so that our operations and supply chain continue to operate like clockwork.”

This is a diverse industry where highly

experienced engineers will always be in demand. But companies like Airbus also want to find and develop the dynamic young talent of tomorrow.

Define the type of engineer you want to be Take Mehsaan Mohiuddin, who joined the company in 2015 as a manufacturing intern before finishing his engineering degree and then returning in 2017 on the company’s graduate scheme. He’s now working as an industrial architect with a focus on the design and manufacture of wing structures, while being supported by the company to study a Master’s in aerospace manufacturing.

“My internship was the most defining year of my career,” remembers Mohiuddin. “It gave me the chance to put university theory into practice at one of the biggest manufacturers in the UK. It was an amazing experience that helped me define the type of engineer I wanted to be.”

Mohiuddin is excited that disruptive technologies such as robotics, simulation and the digitalisation of

Chloe Sharpe — who joined Airbus in 2020 — is currently in the last year of her Level 3 Advanced Manufacturing Engineering Technician qualification and would recommend this route to anyone. “As an apprentice, you experience a wide variety of roles across the company,” she says.

Whatever route new applicants take, they don’t need to be experts at the beginning of their careers. “Having a science background is important but so is demonstrating a real enthusiasm for the industry,” says Sharpe. “Employers can teach specialist skills through apprenticeships, graduate schemes and other educational programmes.”

However, she acknowledges the difference between the theory taught in schools and the practical application and the requirements of the workplace.

“It’s why I’ve become part of the company’s STEM ambassador team,” says Sharpe. “We go into schools to explain what we do, and we invite students into the company for tours and talks. It’s a way to spark their interest in aerospace and show the industry is open to them, whatever their background, ethnicity or gender.”

Both Sharpe and Mohiuddin are abuzz about the future of aerospace.

“It’s such a fulfilling and rewarding career,” says Mohiuddin. “I always get a real sense of pride when I’m at an airport and see a plane I’ve worked on. It’s great to be at the heart of an industry I’m so passionate about.”

INTERVIEW WITH Chloe Sharpe Customer Services Engineering Apprentice, Airbus

INTERVIEW WITH Mehsaan Mohiuddin Industrial Architect, Airbus

WRITTEN BY Tony Greenway

Image provided by Airbus INTERVIEW WITH Jerome Blandin SVP, Head of Broughton Plant, Airbus

WRITTEN BY Malcolm Harrison CEO, Chartered Institute of Procurement and Supply

Supply

real value

The pressure to meet targets and tackle the challenges of inflation and shortages should not distract manufacturers from the real issues.

It is tough managing supply chains in the manufacturing sector. The sector is faced with soaring energy and raw material costs, adjusting to greater protectionism and cross-border complexities, the impacts of war, skills shortages, the continued effects of the pandemic and greater unpredictability of both supply and demand.

Data shows decline

After decades of low-cost sourcing and long and lean supply chains, manufacturers are looking to their procurement and supply teams and asking: “What do we do now?” There is no single answer. The S&P Global/ CIPS UK Manufacturing PMI® data for October showed another decline in manufacturing production as higher costs affected new business for the UK’s producers. Orders fell at the sharpest pace since May 2020 as customers reined back spending due to higher costs and delivery delays.

What others are doing

Companies such as Europe’s largest carmaker Volkswagen have gone public about their difficulties, citing permanent sourcing delays. With 150,000 cars left unfinished, this demonstrates that even large companies are severely affected. Society expects that supply chains deliver the goods and services needed by its citizens. That’s why organisations must build resilient and agile supply chains to better cope with unpredictability and offer the greatest value to organisations and their customers.

Quality control

The pressure to meet targets means businesses could be tempted to cut corners. For instance, our research

found that one in five UK supply chain managers were choosing cheaper materials to mitigate against price rises. Another quarter had to find alternative suppliers, and 36% had switched their products due to the inflationary costs of doing business. Could this mean poorer quality goods or inferior service for consumers?

By matching the most efficient operator in their sector, manufacturing companies — on average — would be 24% more profitable, generate 30% more jobs and report a 9% reduction in greenhouse gas emissions.

The Covid-19 pandemic has disrupted almost every aspect of the UK’s manufacturing sector, from procurement and staffing to supply chains and fulfilment. Businesses were impacted in three ways: lockdown restrictions reduced on-site productivity, overseas supply chains broke down and countries all over the world entered recession, leading to plummeting demand.

Reliance on manufacturing

Society expects that supply chains deliver the goods and services needed by its citizens.

Protecting businesses

We must not lose sight of important issues such as sustainability, the management of carbon and ethics in supply chains. Recently, car manufacturer Hyundai found underage workers employed by one of their suppliers in the US. They severed ties immediately, but some companies may choose to ignore those issues when faced with huge financial pressures.

Supply chains must be resilient, sustainable, ethical and deliver real value. Trained and skilled procurement and supply management professionals can ensure this and protect businesses in this higher-risk world. The procurement profession must build the resilient supply chains manufacturing firms need.

As many sectors suspended operations and furloughed staff, the UK manufacturing sector was asked to continue to deliver essential goods, such as food, Personal Protective Equipment (PPE) and medical supplies — including domestic production of the Oxford-AstraZeneca vaccine. Alongside this challenge, the Government has legislated for the UK to reach net-zero greenhouse gas emissions by 2050 with a series of set milestones. Currently, the country is not on track to meet its fourth and fifth carbon budgets, which set emissions reduction targets for the period between 2023 and 2032. Under the sixth carbon budget, the UK will as a whole need to deliver a 78% reduction in carbon emissions by 2035, and the manufacturing sector will have a crucial role to play in decarbonising if this is to be achieved.

Sector adjustments

Policy Connect published its ‘Manufacturing Resilience’ inquiry in 2021, which focused on how the sector can adapt to challenges and become more productive, resilient and sustainable as it builds back from the pandemic.

Improving efficiency can help the manufacturing sector deliver on the Government’s net-zero target. This will not be easy, particularly as many production processes including chemicals, cement, glass and steel are energy-intensive and difficult to decarbonise.

The Government’s Industrial Decarbonisation Strategy set out in 2021 provides an indicative roadmap for how this will be achieved, especially within the UK’s regional industrial clusters. These will be the first to benefit from emissions reduction technology, such as carbon capture, usage, storage and hydrogen fuels.

However, there will be challenges for dispersed sites which will need to decarbonise through more traditional means. This could include enhancing energy and resource efficiency.

Future design

Key recommendations include the development of a national advice and support service, building on the Government’s successful ‘Made Smarter’ pilot and developing resilience within manufacturing businesses.

Policy Connect, the All-Party Parliamentary Manufacturing Group and the Manufacturing Commission will set out a programme to tackle these issues, including the future of the manufacturing workforce and designing for net zero.

chains must be resilient and sustainable to deliver

We can deliver net zero with a resilient manufacturing sector

WRITTEN BY Mark Pawsey MP Conservative MP for Rugby and Co-Chair of the All-Party Parliamentary Manufacturing Group

WRITTEN BY Claudia Jaksch Chief Executive Officer, Policy Connect

Navigating volatility in a ‘permacrisis’ world

Investing in people, processes and technology – not simply focusing on tech – is vital to innovate, empower teams and better negotiate the choppy waters ahead.

In early November, Collins Dictionary announced ‘permacrisis’ as its word of the year. Defined as “an extended period of instability and insecurity” it neatly sums up the ongoing volatility endured by business leaders in 2022. In addition to the pandemic fallout, they have had to contend with the Ukraine war, surging inflation, supply-chain issues, and political precariousness.

Who can confidently predict what will happen in 2023? The next wave of disruption will surely cascade onto organisations sooner rather than later. But, whatever, those that focus on visibility through quality data and empower their people with the technology and processes to adapt to change quickly, and adopt a longer-term mindset, are most likely to negotiate choppy waters best. As 18th-century English historian Edward Gibbons wrote: “The wind and the waves are always on the side of the ablest navigator.”

WRITTEN BY Gavin Fallon General Manager, Northern Europe, Board

While the coronavirus crisis spurred the acceleration of digital transformation journeys for most organisations, who were forced to embrace technology solutions and rethink ways of working, it is vital not to ease up the pace now. On the contrary, the unrelenting speed of change necessitates continuous business evolution that enables speed to transform data into information and decision-making.

Airlines and airports, for instance, displayed woeful preparation when coronavirus restrictions were lifted earlier this year. As a result, the overseas travel experience was appalling during the Easter and summer holidays, when many tourists were holidaying abroad for the first time in three years. Ultimately, for businesses – and industries – to survive and thrive in tomorrow’s increasingly volatile world, they need to plan much further ahead and invest in enhanced process, technology and people today. By using and gaining new insights from data-hungry Intelligent Planning solutions, better outcomes will be delivered, greater flexibility is achievable, blind spots are uncovered, and the leadership group can plan for new and unknown scenarios.

Real-time data empowering teams

Analysing and sharing more data – perhaps with the guidance of a trusted partner if in-house expertise is lacking – and training teams to use that information at their fingertips at the right time provides a competitive advantage.

More than empowering people in the short term, though, a collaborative and unified approach to data management means the organisation will be likely to withstand the pressure when buffeted by volatility in near and distant timescales. Processes and systems will help people see through the noise and make the best decisions.

Uncovering blind spots and improving visibility

After two-plus years of coping with the pandemic, one would hope that lessons have been learnt and businesses are better prepared for crises. And yes, technology is a great enabler. But it’s a common mistake to think business transformation hinges on investing in and implementing tech alone. Unfortunately, leaders seem to forget this crucial point: it is a tool that must work in sync with people and process integration.

Indeed, there is a growing list of examples where poor anticipation of likely – never mind unpredictable – issues, often due to a lack of data-driven foresight and because of a short-term approach to business, is damaging reputations and the bottom line.

Leaders with a progressive mindset can replace the fog of frustration with enlightenment and change tack to achieve the optimal outcome in any scenario. If business executives understand what they need to do and that has been modelled into the technology, then they realign the organisation.

Looking further ahead on the business transformation journey, a hierarchy-flattening, self-service capability, where skilled individuals have the tools and talent to alter course at speed, if required, and shape strategy, is within reach.

The more flexible, forward-thinking and silo-breaking approach may be new. But it only works if people, processes and technology are integrated seamlessly. It’s time to rip up the old model and implement a business process with more integrated and intelligent planning capability, to convert crises into opportunities.

WRITTEN BY Les Brookes

CEO, Oliver Wight EAME

Paid for by Oliver Wight and

Leaders with a progressive mindset can replace the fog of frustration with enlightenment and change tack to achieve the optimal outcome in any scenario.

Manufacturing salvation lies with decarbonisation for growth

To take advantage of new opportunities arising through technological developments such as decarbonisation, UK manufacturers are urged to invest for growth.

The Manufacturing Technologies Association (MTA) encourages UK manufacturers to take a mid-tolong-term view and continue investing in the latest technology, enabling them to make step-change improvements in productivity and competitiveness and hasten return on investment. By doing so, they position themselves to take advantage of new opportunities which arise through technological developments; developments such as decarbonisation and the path to a net zero economy.

Economic uplift

The MTA has been advocating the benefits of decarbonisation for several years following the publication of our report ‘Decarbonisation – Future Growth for Manufacturing.’ The conclusion was that if the UK embraced green manufacturing, then the benefits would be tangible, with between £8–20 billion added to the GDP and somewhere between 400,000 to 1 million new jobs. Decarbonisation will inevitably provide the uplift the economy needs.

The skills and ingenuity of the UK’s engineering and manufacturing technologies communities are actively developing innovative new products and services that position the UK at the heart of the decarbonisation revolution. It boosts not just near and offshoring but helps to revitalise GDP through export growth.

Energy-saving efforts

One of our members, a major manufacturer of machining centres, has developed machines that use hybrid technology to store energy for future use as well as controllers to ensure spindles only use power when in use — not standby. This results in far less energy used on their current machines than even a decade ago — with potential cost savings across a five-year period running to tens of thousands of pounds in electricity bills alone.

Future-proofing business

There are hundreds more examples, and all serve to demonstrate why manufacturers — by investing in energy-efficient technology — are helping to offset energy cost increases, future-proof their businesses and help balance the cost of doing business. It won’t always be easy; but unless we evolve now, then we risk losing out on new opportunities.

Skills development programmes will be vital in teaching today’s generation how best to use the technology shaping their future. At our MACH 2022 exhibition, energy-efficient technology and decarbonisation were major themes, and we expect this to continue for MACH 2024 and beyond.

If the advance bookings for 2024 are anything to go by, then there is no shortage of interest amongst manufacturers for investment — and long may this continue.

WRITTEN BY James Selka DL CEO, Manufacturing Technologies Association (MTA)

How cloud technology can drive efficiency and innovation in manufacturing

For UK manufacturers, market conditions remain challenging. The ongoing impact of Covid-19, soaring energy and raw material prices and global supply-chain disruption have sent supply and demand on a rollercoaster ride.

Despite market turbulence, the digital transformation plans of UK manufacturers are forging ahead with a focus on investments that boost profit durability and innovation. Leaders are on a mission to build more resilience into their operations and identify new growth opportunities.

Big value in reports

With the move to the cloud, data management becomes a significant opportunity for manufacturers. IoT and Big Data enable manufacturers to design, build, sell and service smart, connected products — from industrial equipment such as wind turbines to consumer goods such as electric cars and smart home appliances.

WRITTEN BY Greg Sloyer Ph.D

Navigating uncertainty

Many leaders see digital technologies as their best chance of achieving these goals — a view widely shared by their global peers. Cloud migrations and data-driven approaches to manufacturing set the foundation for such advancements, according to a report from industry body Make UK and global professional services giant PWC, Executive Survey 2022: Harnessing Agility and Resilience.

Based on a late 2021 survey of almost 230 UK manufacturing executives, 45% of leaders had made concrete plans to invest in automation, artificial intelligence (AI), additive manufacturing or other forms of digital technologies in 2022. A further 20% said they had plans to do so — if not in 2022, then in 2023. A similar proportion said plans were under consideration, but they had yet to come to a final decision. Only 15% of those surveyed had no plans to invest in digital technologies within the 2022/2023 time frame.

Move to the cloud

Many manufacturers are opting for public cloud services to help extend and optimise their IT infrastructure to improve visibility and business productivity. Cloud service provider Amazon Web Services (AWS) has over a million active global customers and is helping organisations of all sizes move to and thrive in the cloud by enabling them to increase agility, lower costs and accelerate innovation.

A Hackett Group study conducted in January 2022 shows that organisations who migrated to AWS from on-premises saw — on average — 20% infrastructure cost savings, a 66% increase in administrator productivity, a 43% lower time to market and a 29% increase in staff focus on innovation.

Once used by a customer, these products continue to report back to the manufacturer in a stream of data about their performance and condition. Data is coming from more sources than ever — including customers, supply chain partners, contract manufacturers, logistics providers and more.

The challenge is to jointly analyse the data and create a big picture of real-time situations, which enables partners to collaborate on effective responses — and in some cases, predict and mitigate adverse events before they even arise.

Data opportunity

The first goal when manufacturers tackle disruption is creating visibility. To do so, they need access to relevant data that identifies risks and potential breaks in the supply chain before they strike. It’s all about speeding up the time elapsed from an issue surfacing to corrective action.

Snowflake provides a cloud-agnostic platform to analyse and manage data securely, regardless of its format. Elastic scalability and performance enable manufacturers to cast the net wider and include more data from more diverse sources, boosting insights and leading to better decision-making.

The second goal is agility: the ability to spot a problem and to act on it quickly, based on an accurate understanding of the real-time situation. When hit by disruption, manufacturers can alter their plans quickly — perhaps by switching to alternate suppliers, using another material/part or adjusting delivery dates or routes. Meanwhile, data-sharing keeps business partners up to date, and they can simultaneously adjust course accordingly.

Paid for by Snowflake and Amazon Web Services

AWS and Snowflake enable manufacturers by providing advanced cloud solutions, near-infinite elastic scale, seamless cross-cloud data sharing and the ability to embed machine learning directly in the data cloud.

webinar series.

Global Industry Principal, Manufacturing, Snowflake

More opportunities unlock talent for the manufacturing industry

WRITTEN BY Dr Hilary Leevers Chief Executive, EngineeringUK

Over 36% of the engineering workforce is employed in manufacturing, and demand for the technical skills needed in those roles remains significant. This gives great career prospects for young people with the right skills and training.

Raising awareness of opportunities

Across the industry, and particularly in manufacturing, vocational routes that combine classroom learning with industry experience have a huge part to play. Unfortunately, the number of engineering and manufacturing apprenticeship starts in England has nearly halved since 2016 and awareness of T Levels — a new route into engineering — is worryingly low.

Inspiring the engineers of today and tomorrow

qualifications; not only do they have to recognise and value them, but they will also play a critical role in providing work placements for students.

We estimate that up to 43,500 industry placements will be needed in the engineering, manufacturing and digital sectors by 2025, so there’s much to be done.

When we surveyed young people, only a third of them said they know what T Levels are.

Young people, their teachers, parents and carers as well as employers must be aware of T Levels and understand how they work. Yet, when we surveyed young people, only a third of them said they know what T Levels are. Our joint research with Make UK shows that less than a third of engineering and manufacturing employers have heard of T levels and understand what they involve. Employers will be essential to the success of these

How modern methods of construction address sector labour shortages

MMC (Modern Methods of Construction) in the construction industry can improve productivity and influence the drive for net zero carbon construction by 2050.

Richard Papworth is a director overseeing civil and structural disciplines at global company HDR, specialising in the built environment. Papworth shares his views.

Q: How serious are the labour shortages in the UK construction industry?

With the decline in skilled labour, an ageing skilled workforce and the departure of European skilled labour; the shortage is significant. This is driving up salaries and construction costs.

Q: What is MMC in the built environment?

The phrase modern methods of construction relates to new ways of construction including volumetric offsite manufacturing, offsite

Creating a more diverse industry We need a high-profile awareness campaign to promote T Levels. We must also do more to reach young people from groups underrepresented in engineering, so they can see themselves working in the industry. Only 16% of engineering professionals in manufacturing are women, and just 10% of those taking engineering and manufacturing apprenticeships are from ethnic minorities.

More positively, we work with hundreds of employers across the country who seek to encourage young people from all backgrounds to consider working in engineering. And those employers are committing to collaborating to deliver high-quality schools engagement. If we can extend this effort to supporting T levels, we have a chance of securing the breadth and depth of talent that UK manufacturing needs to thrive.

more apprentices enter the industry, we might not have a choice as there will not be enough people to carry out work on sites.

panelised systems and offsite hybrid systems. This provides the industry with the flexibility to use different materials.

Q: Where can MMC be utilised?

MMC can include a variety of building typologies; ranging from an entire house, a room with a bathroom or shower pod, single elements or a wall panel with wiring and plumbing that will be taken to a site. Hospitals, laboratories and tall buildings also benefit from MMC due to the complexity of building typology.

Q: How can MMC help address labour shortages?

MMC will not completely take over traditional construction. However, unless we start training people and

Q: What are the benefits of MMC? With the labour shortage, the approach is increasingly more efficient in a factory as typically, there is less waste. MMC factories can act as employment hubs; rather than moving people to building sites, construction workers can be employed from an area local to the factory which allows access to a more sustainable workforce. Health and safety can be monitored more closely in a factory than on a site. Factories can potentially provide a more enhanced working environment.

Q: Is the skill mix in a factory the same as on a construction site?

There is still a specific skill mix in a factory; plasterers are still needed, along with carpenters, electricians and plumbers. However, as all the tradespeople are working in one space, they are in a more controlled environment, bringing in efficiencies — helping to save time and money.

Q: How will MMC address the drive towards net zero carbon construction? The approach arguably speeds up delivery, reduces labour costs, eliminates unnecessary waste and improves quality. The industry can then work towards achieving Net Zero Construction by 2050.

We must do more to ensure that young people understand and appreciate the rewarding careers manufacturing offers and motivate employers to help young people into those careers.

INTERVIEW WITH Richard Papworth CEng, MIStructE Director, HDR

WRITTEN BY Mark Nicholls

Why organisations are turning to modern logistics hubs to ensure business resilience

To support sustainable growth of global supply chains the UK Government needs to deliver on wide ranging planning reforms.

Following a chaotic and disruptive period in which businesses have had to fight numerous fires simultaneously, they are now taking steps to future-proof and enhance resiliency levels. The heart of this effort revolves around their chosen logistics hubs.

Logistics capacity

Having the requisite volume of space, positioned in an optimum location and built to new and innovative specifications is more important than ever. The urgent need for more space for urban logistics operations is reflected in the fact that warehouse occupancy levels are now beyond 99%, with rental rates doubling over the past decade.

Building resilience

The battle for premium spaces in prime locations, in part, derives from a change of emphasis in the face of recent supply chain crises. Covid-19, the Ukraine war, microchip shortages, inflation and Brexit have all contributed to a mindset shift from ‘just in time’ to ‘just in case’. Compounding this need to cover all bases, consumers’ expectations have altered amid the rise of ecommerce, resulting in demand for quicker deliveries — in more sustainable ways — from trusted brands.

“There were huge lessons learned from the global financial crisis, where landlords were left holding on to properties that were no longer attractive,” explains Caroline Musker, Head of Planning, Prologis. “Now, we must think more holistically and in a more agile way, following a pandemic period which has shone a spotlight on the importance of logistics.”

“Whilst the Future of Freight Plan has provided real hope for the industry, political uncertainty being played out on wider planning reforms, and the need to ensure that the Government drives much needed growth and investment, needs to be urgently grappled with” she adds.

Attracting talent

Ongoing market, economic and geopolitical disruptors have exposed manufacturers’ and retailers’ weaknesses; whether they were stretched distribution operations, inefficient deliveries, a lack of data-driven processes, sub-optimal green credentials or – in particular – labour concerns.

For too long, the sector has grappled with negative connotations around low pay, monotonous work and progression limitations. Attraction and retention have become subsequent struggles, but amid the clamour for more modern and innovative logistics hubs, Prologis is urging a rebranding of the sector as a whole.

Sally Duggleby, the company’s Vice President of Capital Deployment and Leasing, says: “Logistics

Logistics is a sector that is constantly evolving, and with that comes a lot more STEM opportunities than people imagine.

is a sector that is constantly evolving, and with that comes a lot more STEM opportunities than people imagine. Modern warehouses rely on data, automation and robotics; and they often come equipped with gyms, canteens and perks that embrace the surrounding environment or location.”

The Prologis Warehouse and Logistics Training Programme is an example of the company’s commitment to providing gateway opportunities to people wanting to enter the logistics sector. This sits alongside consultative work with warehouse occupants to aid their attraction, training and retention credentials.

Challenging perceptions

What the company looks to affirm with clients is that a logistics facility is more than just a basecamp — it sets the tone for the whole operation. In the face of recent crises, we must alleviate risk through the ‘just-in-case’ model, pertaining to hub positioning and supply management.

A traditionally underwhelming talent attraction record has called for more modern and dynamic surroundings. Pressure to showcase improved environmental impacts has prompted a need to rethink both building and transport setups. An optimised logistics hub isn’t just a way to stabilise the supply chain, it can be the very focal point for future business growth and success.

Musker concludes: “For us, it’s all about challenging the way that people view supply chains, away from that image of logistics parks as big boxes creating negative impacts on traffic and emissions. Following the pandemic, hopefully, people have a better awareness of how critical supply chains are to their lives; and we want to work with the communities and our customers to build on that awareness in a positive way.”

WRITTEN BY Robin Woodbridge Head of Capital Deployment UK, Prologis

What makes a good leader in our current business climate?

With the energy crisis, ongoing labour shortages and a looming economic downturn, leaders in the manufacturing sector face many short-term challenges. They must also address the longer-term challenges — and opportunities — of transitioning to a net zero future as well as adopting greater technology and digitalisation in their businesses.

What makes a good leader?

Good leaders and managers recognise that taking their employees with them on the digitalisation journey is crucial to their collective success. Make UK and Rockwell recently carried out a survey of manufacturers to assess their views on leadership and management; the types of leaders and managers they are looking for; and what methods they use to train and develop leaders and managers of the future.

According to the survey, over two-thirds of companies say there is a shortage of management and leadership skills within their business. Conversely, however, companies are aware of the critical need for these types of skills — with three-quarters saying they were key to improving productivity and almost four-fifths saying they were needed to increase sales and orders.

Rising need for sustainability and diversity

The need for managers and leaders to have a forward-thinking outlook is backed by four-fifths of companies saying they are crucial to implementing new and greener technologies and an equal number saying an effective leader is necessary to implementing diversity, inclusion and equality. This is especially important with investors looking for companies with clear environmental and social governance goals. Moreover, employees increasingly expect to see companies have firm policies on diversity, equality and inclusion. This can attract and retain staff — especially important with the competitive hunt for talent.

Encouraging empathetic leaders

The survey also shows employers are placing less of a premium on technical skills, professional qualifications and length of service and are looking for ‘North Star’ leaders who are more human and empathetic, with an ability to take a more holistic view of the business.

Companies overwhelmingly use external consultants to train the next generation of leaders with one in five using degrees, including MBAs, and a similar number using apprenticeships. With a significant amount of the Apprentice Levy funds unspent, Make UK believes there is an opportunity to use some of these funds to support greater levels of leadership and management training.

The issue of leadership and management in manufacturing companies has never been more important. Good leaders and managers have a clear vision, can communicate that to their staff and drive change.

WRITTEN BY Verity Davidge Director of Policy, Make UK

Why Industry 5.0 is both a boon — and a cyber security challenge

The advance of Industry 5.0 and the Industrial Internet of Things (IIoT) has undoubtedly revolutionised the way many manufacturers and their supply chains operate. But it has also created a complex challenge for them.

Connectivity framework vulnerabilities

To make the most of digital innovation and keep up with the competition, manufacturers must now ensure that their operational technology (OT) systems interact with their information technology (IT) systems. For instance, a vaccine manufacturer might connect a fridge to its IT network to ensure that optimum storage temperature is maintained at all times. The trouble is this could open a new attack surface and create a new challenge from a cyber security control perspective.

“OT network components such as automated robotics, food processing lines and even industrial control systems are generally not classified as ‘secure-by-design’ because they were not designed to be enterprise network connected,” explains Charlotte Davis, Director of OT Security at NCC Group, a global cyber and software resilience business.

“Yet, with connectivity to the Enterprise IT network and/or cloud storage, many OT components such as sensors, actuators and manufacturing operations management (MOM) systems expose the OT and IT networks and must be considered as connected devices to assess in terms of vulnerability to attack.”

Top five cyber security threats to a business

Indeed, this lack of IT and OT security alignment makes manufacturing more vulnerable to cyber threats than other industries. Davis notes that the top five cyber security threats come from equipment sabotage (including nation-state attacks), phishing, IP theft, ransomware and supply chain attacks. On top of this, the risk landscape has changed irrevocably for manufacturing firms in recent years — and for a number of reasons.

Take the proliferation of low-code development platforms, for example, which Davis identifies as one of 2023’s biggest security threats. “Low-code is used by the manufacturing industry as a way of creating a repeatable coding platform, rather than commonly writing code for every process and procedure,” she says. “This trend prevents economies of scale

and efficiencies where such skillsets may not exist internally. It is important, however, to ask the question: is the code itself secure by design?

Then there is the complex nature of the typical supply chain profile for a manufacturing entity — and the fact that the industry regularly outsources, offshores and has a greater dependency on sub-suppliers. “A complex supply chain with many interconnected providers, suppliers and dependencies creates a matrix profile of security considerations,” says Davis.

Cyber security as part of your resilience planning

Most importantly of all, manufacturers need to take a holistic approach and make cyber security an integral part of their business resilience programme. “A cyber attack is just one of many potential impacts on a business’s operating profile,” says Davis. “To ensure business resilience, risk management and cyber security must be weaved into all aspects, from sourcing products and components to maintaining RPO and RTO or risk failure.”

Using back-to-basics cyber hygiene methodology, it’s possible to effectively align OT security with IT security as well as embed and maintain compliance with safety principles, says Davis. But the fact is that this is a new, ever-evolving territory where all players are learning as they go.

This is why manufacturers should partner with a cyber security expert who understands the best approaches to use within an OT environment. “The right adviser can ensure that a manufacturer’s IT and OT security are holistically configured, their end-to-end network security status is always visible and monitored, and importantly, it is centrally managed on an ongoing basis,” says Davis. “It’s the most effective and efficient approach to maintaining a consistent security posture and facilitating a robust business resilience programme.”

The rise of the Internet of Things and Industrial Internet of Things has security implications for manufacturers.

It’s why they need to make cyber security an integral part of their business resilience programmes.

Lack of IT and OT security alignment makes manufacturing more vulnerable to cyber threats than other industries.

INTERVIEW WITH Charlotte Davis Director OT Security, NCC Group

WRITTEN BY Tony Greenway

Image provided by NCC Group

How simulation software supports sustainability in the manufacturing sector

One core focus among manufacturers in recent years has been on the adoption of renewable sources of energy to power operations and end the reliance on fossil fuels. Back in 2011, Toyota installed the UK’s largest Solar PV array connected to an industrial site — aiming to generate 4,300,000KwH of energy each year.

Encouraging collaboration

WRITTEN BY Umair Ejaz Product Marketing Manager, Visual Components

However, beyond the adoption of renewable energy, manufacturers must consider sustainability in all its forms. Green strategies today need to cover alterations to manufacturing processes on the factory floor and beyond, such as considerations around business travel. The technology to underpin innovation across all aspects of business operations is that of 3D simulation software.

Improvements on the factory floor 3D simulation software provides a virtual sandbox environment where users have free reign to make any number of mistakes before identifying the best solution for the real world. For example, an excessive transport path of an AGV, forklift or other robots could be negatively impacting the organisation’s carbon footprint. The trial-and-error nature of the technology allows manufacturers to continuously test efficient, new pathways. On a much larger scale, the software can be applied to the creation of new smart factories on existing brownfield land, ensuring that fewer greenfield spaces are used.

The ability to test new strategies in a risk-free virtual sandbox also brings benefits in the reduction of waste. According to research by Visual Components, 72% of respondents say that less than 50% of the materials used in the manufacturing process are sustainable. Organisations can virtually test environmentally friendly packaging materials to achieve fewer use of plastics and avoid expensive product trials. The technology can even be used to simulate processes across the wider supply chain, allowing organisations to account for Scope 3 emissions.

Newfound efficiency on the factory floor is only one aspect of enabling company-wide sustainability. 3D simulation software also has a role to play in employee collaboration. A digital twin can interact with real/physical assets to accurately replicate real-life speeds, loads, temperatures, inertia, pressures and even the external forces that could theoretically act on the system. Employees from different teams in the organisation can access this key data to make optimisations. The technology can also enable service life and maintenance predictions, evaluation of new operating scenarios and operator and maintenance training. Managers can also replay past events to take lessons from what previously went wrong.

Before Covid-19, it wasn’t unusual for employees to travel via car or plane to present future factory layouts in-person to colleagues or clients. The accuracy and detail made possible by simulation software can enable effective communication of detailed plans from any location. Staff can also be trained and upskilled from anywhere, which helps to address the growing skills shortage in the technology sector.

Sustainability and Industry 5.0

With 3D simulation software able to provide sustainable value in a number of ways, its role in the advancement of Industry 5.0 is clear. Alongside the prioritisation of employee skills and training, Industry 5.0 favours circular production models and supports technologies that make efficient use of natural resources.

The pressure is building on businesses to play their part in protecting the environment and helping to battle against rapidly escalating climate change. Simulation software is now being used in academia and research — such as universities and research centres — to help train the engineers of tomorrow. This is helping to bridge the skills gap and enable a long-term understanding of sustainability for up-and-coming professionals in the industry.

As governments around the world collectively set targets for net zero carbon emissions by 2050, organisations across all sectors are being urged to contribute to a more sustainable future.

Paid for by Visual Components

The ability to test new strategies in a risk-free virtual sandbox also brings benefits in the reduction of waste.