Future of Manufacturing - Q2 2023

Plotting a new industrial strategy: a growing manufacturing ambition

The UK manufacturing sector is an essential contributor to the country’s economy generating £206 billion gross value added in 2022 a fifth higher than a decade ago.

The manufacturing sector accounts for around half of our exports, two-thirds of spending on research and development and accounts for a significant level of business investment. The sector employs around 2.6 million highly skilled people across the UK, many of them in areas that need levelling up. In short, manufacturing matters to the prosperity and security of the UK.

WRITTEN BY Verity Davidge Policy Director, Make UK

Themes for growth in manufacturing

The sector is now at a critical juncture. Ten years ago, Make UK (then EEF) set out its case for an industrial strategy. Since then, we have had six plans for growth but now find ourselves without one. There is broad agreement among stakeholders about what the UK needs for a successful industrial strategy. These can be broadly categorised into five themes: skills; infrastructure; finance; innovation; and the business environment. To these, we can now add significant shifts in the policy landscape from the post-Brexit and pandemic landscape, the transition to net zero, rapidly accelerating

technologies spinning out from the fourth industrial revolution and the political imperative to spread growth more evenly across the UK. Harnessing UK strengths for manufacturing innovation Internationally, the UK risks being squeezed by the US Inflation Reduction Act, which is already having a significant impact on drawing in green investment. Similar measures are also being proposed by the EU. In the face of these, the UK is the only developed nation without an industrial strategy. Yet, never has the case been clearer to adopt one.

We now have the opportunity to harness the undoubted strengths the UK possesses in its academic and research base by working with manufacturing companies that are highly innovative. They are clear that an industrial strategy would bring the benefits of a long-term vision and a stable environment in which they can plan, invest and grow.

@BusinessandindustryUK

Project Manager: Jessica Steward jessica.steward@mediaplanet.com

“From electric vehicles to carbon capture and storage, the manufacturing sector plays a crucial role in creating the products and technologies that will help reach our net zero targets.”

Sarah Olney MP

Liberal Democrat Spokesperson for Treasury, and Business and Industrial Strategy

Rob Allen Senior Policy and Research Manager, Policy Connect

“Emerging technologies such as the Internet of Things (IoT) and machine learning can play a critical role in enabling predictive maintenance.”

Tim Lawrence Director of Digital Supply Chain Hub, Digital Catapult

The sector employs around 2.6 million highly skilled people across the UK, many of them in areas that need levelling up.

WRITTEN BY

Tim Lawrence Director of Digital Supply Chain Hub, Digital Catapult

Using modern technology to improve supply chain sustainability

Supply chains across the country are becoming more sustainable, and emerging technology has a critical role to play in this transformation.

How embracing disruptive technologies is helping supercharge manufacturing growth

The ability of disruptive technologies to improve what are already efficient manufacturing processes is helping to revolutionise modern manufacturing and creating tantalising possibilities for what may be achievable in the near future.

How can emerging tech improve supply chain sustainability?

Emerging technologies like blockchain and artificial intelligence (AI) can help improve supply chain sustainability by enabling better visibility and accountability for emissions. This is particularly important given that up to 90% of a business’s emissions come from the supply chain, which is known as ‘scope 3.’

However, measuring scope 3 emissions is challenging, as traditional models are based on outdated historical data, necessitating an alternative that provides true visibility and connectivity. At Digital Catapult, I’ve seen how this can be facilitated by leveraging Blockchain and AI so that data around emissions can be shared across supply chains in near real-time driving reductions in CO2.

Reducing waste and enabling predictive maintenance in the supply chain Emerging technologies such as the Internet of Things (IoT) and machine learning can play a critical role in enabling predictive maintenance and reducing waste in the supply chain. By deploying IoT sensors on assets such as vehicles and machinery,

businesses can collect real-time data on their performance, enabling them to detect potential issues before they become major problems.

Leveraging machine learning not only mitigates problems but allows experts to analyse data from IoT sensors which provides valuable insights into asset performance and maintenance needs. This leads to improved asset efficiency, productivity and overall business performance.

Emerging technologies improve logistics in the supply chain Blockchain, AI and IoT are emerging technologies that can enhance logistics in the supply chain. They can ensure secure and tamper-proof record-keeping of transactions and collect data on factors such as temperature, humidity and air quality.

The Logistics Living Lab project by Digital Catapult, for example, utilises these technologies to reduce carbon emissions from road freight transportation and improve coordination, efficiency and sustainability among logistics providers while maintaining data security. This has an overall advantage to supply chains across the country, making them more sustainable in the long term.

WRITTEN BY Joshua Dugdale Head of Additive Manufacturing UK

Digitisation and Artificial Intelligence (AI) are two of the latest technologies to offer exciting possibilities for the world of manufacturing. At AMUK, we are helping companies embrace the potential of new technology to develop the manufacturing techniques which will futureproof their business and supercharge growth opportunities.

Example of disruptive technology in manufacturing

Additive Manufacturing (AM) is a technology with huge potential to revolutionise the way we design and manufacture parts and products. Unlike traditional methods — where material is removed during the manufacturing process, such as in machine tool cutting — AM is a manufacturing process where 3D parts are produced by building layer-upon-layer of material. The process reduces waste and creates precision products with minimal effort, enhancing efficiency and potentially reducing production costs for small batch runs.

Design freedom in additive manufacturing

The design freedom offered by AM has not been achievable using traditional manufacturing processes. This is why it is fast becoming the production system of choice for many manufacturers, especially smaller companies on the lower tiers of the supply chain where costs are a major operational consideration.

The possibilities offered by AI, married to AM techniques, are tantalising prospects for the industry. Designers can utilise AI to explore the boundaries of what might be possible in AM design and processing. This enhances the fabrication of complex components by eliminating fallibilities before the component is ever put into production — and in turn, aiding quality control.

Precision tolerances for new and existing techniques

The technology is not restricted to new techniques. It can be used to optimise an existing design by analysing the tolerances a particular product must meet. These tolerances, such as those applicable to the aerospace sector, can be highly complex and therefore require a process such as AI to examine how the part will perform in the real world. The savings generated long-term could be lifechanging for the companies involved by significantly reducing research and development budgets, as well as production costs. AMUK is the UK’s only trade association for the AM industry and is part of the Manufacturing Technologies Association cluster. It exists to promote and support the companies working within the AM value chain as well as educate potential users on the limitless possibilities offered by Additive technologies.

Blockchain, AI and IoT are emerging technologies that can enhance logistics in the supply chain.

The process reduces waste and creates precision products with minimal e ort.

Despite the plethora of academic opportunities and qualifications available, the UK is increasingly facing a skills gap, which is stalling progress in the transition to a green economy.

This year’s school leavers will have the choice of a variety of academic and vocational qualifications, including the latest T-Level offerings, which incorporate a 45-day industry placement. Why then, at a time when there are more learning pathways available than ever before, do we find the skills gap widening?

Challenges resulting from policy change England’s skills system is a complex network which has been subject to frequent policy changes over the last 40 years. Indeed, the Institute for Fiscal Studies recently noted that the skills sector has been in an ‘almost permanent state of revolution.’ Last year’s Skills Act saw some

welcome improvements including a requirement for skills providers to work with local employers to deliver on local skills needs, along with a greater emphasis on green skills.

Green skills needed to deliver net zero From electric vehicles to carbon capture and storage, the manufacturing sector plays a crucial role in creating the products and technologies that will help reach our net zero targets. However, the Government’s aims for a Green Industrial Revolution are being held back by a lack of skills — particularly those in STEM subjects. For example, the charity Nesta estimates that at least 27,000 engineers will be needed by 2028 to meet heat

Makers’ misery continues with the fastest economic fall in four months

Manufacturing companies were showing strain in May with the fastest fall in production in four months as new orders levels fell, inflationary pressures remained challenging and job shedding continued.

According to survey data released in June from S&P Global and CIPS, the overall index figure was 47.1, down from April and where a figure under the no-change 50 mark shows a contraction.

A weak marketplace in UK economy

The sector was hit by a lack of domestic and overseas orders, especially in intermediate goods. Consumer goods orders saw an uplift in orders. A difficult marketplace was blamed as customers felt indecisive and hesitant to order because of the challenges in the UK economy. Work from overseas took another hit and fell for the 16th month in a

row across all subsectors. There was less demand from the US and Europe as stronger global competition meant customers had more choice; but for European clients, issues around Brexit such as higher administrative duties and tariffs meant they were sourcing closer to home.

Jobs and inflation

Average prices for raw materials fell for the first time since November 2019, which looks like there was some relief for firms struggling with business costs. However, the rate of decline was small and not evident across all subsectors and, after a long period of rises, raw material costs were still high compared to even a year ago.

pump installation targets. This would require more engineers to be trained every year than currently exist in the whole industry.

Make manufacturing more appealing

It will not be possible to close these green skills gaps by seeking to recruit graduates from existing talent pools. The manufacturing sector must therefore make itself more attractive to learners that are under-represented in the sector, particularly women and those of minority backgrounds. Alongside this, businesses must seek to upskill their existing workforce to meet the needs of the future green economy. Securing a high-skilled and sustainable workforce for the manufacturing sector is the focus of the Manufacturing Commission’s current inquiry. The Commission is Chaired by Lord Bilimoria of Chelsea and will report on its findings in the autumn.

WRITTEN

Rob Allen Senior Policy and Research Manager, Policy Connect

The prices manufacturers charged their customers rose further, as they have in every month since May 2016. Businesses tried to absorb inflationary costs to maintain their customer base but after a prolonged period doing so and the increased salary demands in today’s jobs market, they were still forced to raise prices.

The employment situation remains worrying. Job losses were recorded for an eighth consecutive month where leavers were not replaced, and manufacturers reined back their operations as pipelines of work weakened and capacity reduced. The rate of decline was only marginal but could show a trend developing for business in 2023.

Supply chain improvement

There were more signs of normality appearing in the efficiency of supply chains, and shortages were less evident. Delivery times from suppliers shortened for the fourth month in a row as logistics improved and raw material availability recovered.

These improvements led supply chain managers to buy-in fewer materials in May. Manufacturers overstocked during the pandemic to ensure production could continue during disruptive times. They are now struggling to rundown these high stocks, especially as the downturns in demand and production deepen.

Glen

WRITTEN BY Sarah Olney MP Liberal Democrat Spokesperson for Treasury, and Business and Industrial Strategy

At least 27,000 engineers will be needed by 2028 to meet heat pump installation targets. This would require more engineers to be trained every year than currently exist in the whole industry.

BY

Why the UK’s net zero target depends first on closing the green skills gap

WRITTEN BY Dr John

Chief Economist, The Chartered Institute of Procurement & Supply

Why human-centric automation will define the future of the manufacturing industry

There are approximately 1.5 million industrial robots on the planet, manually programmed to complete tasks in the manufacturing environment. That phenomenal amount of machinery requires human expertise to successfully weld, paint or even assemble products.

WRITTEN BY Saku Järvinen Business Development Director, Visual Components

Manual programming takes time. Weeks can go by where a robot is being taught how to complete a process before it can offer any value. To future-proof their operations, manufacturers need to explore automation that places humans at its heart.

Human-centric automation can address skills shortages Automation is inevitably making its way into the manufacturing environment. In addition to lost efficiencies and accumulated costs, manual robot programming is a strain on hard-to-source human resources and often unsafe. Approximately 10 million manufacturing jobs globally remain unfilled due to the skills gap, which adds to the time taken to prepare robots to complete tasks. Where heavy machinery requires human input, employees are frequently needing to climb ladders and position themselves in potentially dangerous settings. A wide range of automation technologies are also coming into play, such as new robot brands, complementary technologies (e.g. laser tracking) and different software solutions, which can further complicate processes on the manufacturing floor and add to the human workload.

Automation of robotic programming is the answer.

Efficient programming of a new or existing robot work cell can be achieved by offline programming software (OLP). Rather than force workers to test and train robotic applications in the real world, OLP software uses a virtual model of the robot and work cell and accurately simulates its processes and workflows, allowing engineers to evaluate trade-offs and make more efficient and cost-effective decisions.

Benefits of offline programming software

Automation of robot programming with OLP software can provide higher and repeatable levels of quality compared to manual programming. There’s little room for error due to established accuracy and consistency that’s stored in the

software, rather than in the brains of professionals who may fail to share this knowledge or leave the business before getting the opportunity to do so.

A crucial benefit — one that is commonly overlooked — is that it can validate a design for manufacturing. If a deployment isn’t tested in a virtual environment, it’s all too easy to make a simple and costly mistake, such as the robot not being able to reach a critical position.

Unlimited opportunities to make mistakes in a virtual sandbox means that a process can be refined to the finest detail before being deployed in the real world. With OLP, organisations have been able to reduce manual programming human work hours by 80%, bring down programming time by 60% and improve production lead times by 62%. Programming can also happen concurrently alongside robot deployment, as opposed to sequentially. This allows for much less time spent on preparation before launching a new product into production. Because it’s all completed offline and away from the physical machinery, there’s a reduced risk of accidents and injuries.

The human factor in robotic deployment

People fear that as robots become more widely deployed and provide optimum value on the factory floor, humans will be pushed aside. However, process knowledge is still needed. It’s up to the younger generation, who are versed in the use of applications and virtual 3D environments, to work with OLP solutions to support automation.

To further feed that pipeline of talent to utilise such platforms, we need to see more examples of the technology being used at the educational level to train students before they enter the workplace. Over the next 10 to 15 years, the manufacturing sector will demand more and improved OLP solutions to make the most of their robotic investments as technology improves.

Human-centric automation will become the norm as robot brands continue to proliferate. While manual programming processes still exist today, they will soon be considered a relic of the past.

Find out more at visual components.com

Manual robot programming is a strain on hard-to-source human resources and often unsafe.

This page is a special feature on Life Sciences

The future of medicines and how to achieve operational excellence

The biopharmaceutical industry is living through a time of enhanced innovation in terms of digital transformation, pharma 4.0 and personalised medicines, particularly cell and gene therapies.

The evolution of biopharmaceutical manufacturing has accelerated with new technologies, drug modalities and personalised medicines. These advancements are helping to meet patient needs faster. However, with innovation comes complexity and challenges — including cybersecurity, supply chain issues, lack of regulatory guidance and knowledge. All of these culminate in delays in ‘speed to patient,’ whereby the average time to bring a drug from development to commercial manufacture is still several years.

optimisation of drug development — improving efficiency of the manufacturing process, decreasing lead times and ultimately leading to better treatment outcomes.

forefront of these new technologies and advanced therapies. We focus on all aspects of the product and facility life cycle — from programme management, commissioning, qualification, quality and regulatory processes, human performance and operational readiness. We utilise artificial intelligence (AI), machine learning (ML) and digital twinning technology to enhance, optimise and shorten the ‘speed to market’ for our clients, including those in the cell and gene therapy space.

Readiness and speed in medicines manufacture

Paid for by Commissioning Agents International

WRITTEN BY

Alice Redmond Chief Strategy Offi cer, CAI

Solution to biopharmaceutical manufacturing challenges

The solution lies in collaboration to enhance digitalisation and operational readiness. Enhanced data analytics have allowed the

The global Good Manufacturing Practice (GMP) framework is embracing innovation and regulatory reform. One of the European Medicines Agency’s (EMA) strategic goals is to foster research and the uptake of innovative methods in the development of medicines. Regulators, industry and professional services companies are collaborating to remove silos, share knowledge and embrace innovation to make safe and effective novel medicines available to patients faster. Delivering through innovation, knowledge and expertise

The industry can achieve this through enhanced collaboration and knowledge-sharing. CAI are at the

To become operationally ready, leaders must begin working towards objectives early in the project — ideally at the beginning stages. This early involvement may surprise operations managers, but this effort is essential.

Ideally, we do the first assessment during the early design phase and update it multiple times as the facility design and product development progresses. This covers all functions and looks at the integration across an enterprise — inclusive of product, process and supply chain. We find the most vulnerable areas are understanding of the process/product, supply chain and organisational health. Early identification and action are key to removing future roadblocks — to get medicines to patients faster.

For the past 27 years, CAI, a global technical services and consulting company, has provided professional services to the life sciences industry. Find out more at cagents.com or contact Katharine.dolan@ cagents.com

From big data to precision medicine: reshaping clinical trials for better patient outcomes

Artificial intelligence; machine learning; real-world data; generative biology. What do these popular phrases mean for clinical trial innovation? They mean the potential for greater understanding of diseases; better and more rapid execution of trials; more breakthrough medicines for patients.

Fast-moving technological innovations can also cause uncertainty. To fully leverage these opportunities, we need all stakeholders to evaluate, learn and adapt so that more innovative clinical trials can deliver on the promise we are beginning to see today.

Digital technologies to analyse patient data

Using AI/ML models can also help increase diversity in trials by finding the right patients for the right studies at the right time.

WRITTEN BY Ginny Beakes-Read Chair, Regulatory and Scientifi c Committee, IFPMA

Digital technologies — such as wearable devices and electronic health records — have revolutionised clinical trial execution, offering new opportunities for data collection, patient monitoring and remote participation.

However, tools powered by artificial intelligence (AI) and machine learning (ML) technology go a step further. They can have the potential to analyse patient data, identify drug targets and compounds that may yield large effect sizes, enhance site selection, optimise inclusion/exclusion criteria and aid in the selection of endpoints. These advancements can be an additional tool to empower researchers and promote more informed decision-making.

AI and ML use in medicine design

Researchers can also better understand the feasibility of new medicines by using machine learning models to design biologics and predict key characteristics, such as viscosity.

Harnessing methodological advancements can enable us to design trials in innovative ways to promote efficiency and outcomes. For example, adaptive trial designs can allow for real-time adjustments based on accumulating data, enabling researchers to better optimise sample sizes, treatment regimens, and patient populations. By embracing adaptive designs, trials can become more agile, faster and more cost-effective.

Multidisciplinary collaboration is the best approach

Despite improved dialogue with regulators, regulatory complexities limit the global adoption of complex trial designs and methodologies. Overcoming these barriers requires collaboration and partnerships among stakeholders in order to foster a multidisciplinary approach to R&D, accelerating the translation of scientific discoveries into tangible patient benefits.

Embracing innovation and fostering collaboration is essential to unlocking the full potential of medical advancements to benefit patients.

Dr.

WRITTEN BY Dr. Katharine Dolan European Business Development, CAI

manufacturing

Mehsaan Mohiuddin is constantly learning new skills in the fast-moving manufacturing industry, which offers a wide range of career opportunities and progression paths.

WRITTEN BY

As a child, Mehsaan Mohiuddin was more interested in taking his toys apart to see how they worked, rather than playing with them. It was the first clue that he was on course for a career as a manufacturing engineer. “I was naturally curious to see how things fitted together,” he says. “Plus, in high school, I had an aptitude for maths and physics. If you combine that with my fascination for aircraft, I suppose it was obvious what route I would take.”

Learning a range of skills in manufacturing

At university, Mohiuddin studied aeronautical engineering and joined aerospace corporation Airbus as an intern in the A400M Wing Assembly Plant. “The A400M is the aircraft that Tom Cruise clings to in

Mission Impossible: Rogue Nation,” he laughs. “That year was a dream come true and sparked my interest in manufacturing.”

After graduating, Mohiuddin returned to Airbus via its Graduate Programme and undertook rotational placements in the engineering and business management departments within the company and customer airlines.

“That was fantastic because it allowed me to understand different parts of the aircraft product cycle, all the way from conception through to customer delivery,” says Mohiuddin, who now works as an Industrial Architect at the company’s Broughton site in North Wales.

Technical abilities and soft skills needed in manufacturing

Manufacturing needs people with the right technical abilities,

including hands-on assembly skills. Mohiuddin says he is currently studying a part-time MSc in aerospace manufacturing, sponsored by the company. He is constantly learning new things to expand his skills and development in manufacturing.

“You need to learn new skills as this is a fast-moving industry,” he says. “Within manufacturing, there are different support functions that I work with every day including logistics, safety and operational teams. So, soft skills — teamwork, collaboration, stakeholder management and communication skills — are as important as technical ones.”

It’s a fascinating time for the sector, with advances such as AI, robotics, additive layer manufacturing (3D printing), and IIoT (Industrial Internet of Things) — plus an increased focus on sustainability — revolutionising the manufacturing world. Now, the industry needs to entice more people to join it.

“There are different initiatives, from virtual work experience to outreach events in schools, that anyone with an interest in STEM can take advantage of,” says Mohiuddin. “There are plenty of career paths to explore, including managerial, technical and procurement. You just need to work out where your interest lies, so reach out, speak to people working in the sector and make the most of the opportunities on offer.”

enabling rapid identification of inaccuracies and instant warehouse management system cross-check and validation.

Efficient inventory management lies at the heart of every successful manufacturing operation, ensuring the production line is not impacted.

The ability to accurately track, monitor and control inventory levels is crucial for optimising production, reducing costs and meeting customer demands. The recent rise of advanced technologies, harnessing the power of real-time data and automation, has offered manufacturers unprecedented opportunities to streamline their inventory management processes.

Streamlining inventory operations

Stock-taking is unanimously perceived as a manual, time consuming and resource intensive process. Having full visibility over stock and storage operations is vital for any manufacturer, ensuring the production line is not impacted.

Dexory’s solution, DexoryView, continuously monitors inventory and optimises warehouse efficiency, combining autonomous stock-scanning robots with powerful warehouse analytics. Gathering real-time inventory insights, visualising and analysing the

data using an intuitive ‘digital twin’ platform and analytics, you always have accurate, real-time visibility of your inventory and warehouse operations.

What does the real-time data unlock in the warehouse?

Real-time data from the warehouse can provide valuable business intelligence that can support organisations optimise their warehouse operations and improve overall supply chain performance. Businesses can respond quickly and efficiently to operational challenges across all levels of operations daily, as well as reducing costs (by boosting demand forecasting, maintaining healthy inventory level, eliminating manual errors) while improving efficiency to keep the business growing and customers happy.

DexoryView, provides an online visual representation of warehouse operations and understanding of inventory and resource, with detailed location occupancy information,

One example would be how Dexory collaborates with DENSO Manufacturing UK, a global mobility supplier, that needs full visibility over its stock and storage operations. The autonomous robot navigates aisles and scans to check each and every rack location to identify empty locations and locate pallets of components in real time, quicker and more accurately than when completed manually. The end goal is to build a warehouse digital twin that offers real-time intelligence to inform and ensure zero-error procurement, with no disruptions to the production line and the wider supply chain across all DENSO sites.

Looking to the future of manufacturing logistics

Businesses should balance the benefits of enhanced efficiency, improved visibility and control, enhanced customer experience, cost savings alongside the challenges that businesses might face (e.g. initial investment, organisation change management, data security and privacy, integration and compatibility). By adopting digital technologies, transparency and accountability are brought into the supply chain — hence, data analytics is going to make everyone’s life easier.

WRITTEN BY Andrei Danescu Co-Founder & CEO, Dexory

INTERVIEW WITH Mehsaan Mohiuddin Plant Industrial Architect, Airbus UK

With the right skills, the sky’s the limit in

Tony Greenway

How real-time data and automation is transforming inventory management