Manufacturing Our Future

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STEPHEN PHIPSON, CEO, MAKE UK We need to harness AI to improve manufacturing of goods. » p2

BEN CARPENTER MERRITT, POLICY CONNECT Grasp the opportunity to address our productivity challenge. » p4

JAMES SELKA, MANUFACTURING TECHNOLOGIES ASSOCIATION Mental health issues are more commonplace within the manufacturing sector. » p10

Manufacturing our Future

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What applications does artificial intelligence have in manufacturing?

Artificial intelligence has many uses in manufacturing. However, many businesses are not using the technology. As the global leader in artificial intelligence, the UK must find a way to use AI to its full potential.

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or years, the film industry has por t rayed a r t i f icia l intelligence (AI) as a futuristic, often dystopian technology that we should be fearful of.

C i nemat ic g reat s f rom t he Terminator, the Matrix, and even the Avengers portray AI in a way that, although entertaining, bears little relation to reality.

Artificial intelligence is being led by the UK

Application of AI in manufacturing AI in manufacturing includes programmes that can predict failures in equipment before issues arise, as well as programming that can allow collaborative robots to detect and evade collisions, and recognise particular parts on an assembly line.

While the UK’s AI scene has yet to use the technology to create an alternative r e a l i t y, w e a r e a global leader in artificial intelligence.

M o r e o v e r , investment in the UK’s AI sector reached £998m in 2 018, a l mo s t t he sum of the rest of Europe’s investments combined.

The vast a mou nt of k nowledge is good for U K m a nu fac t u rer s, as t hey i ncor porate A I and machine learning to improve business performance and productivity.

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STEPHEN PHIPSON CEO, Make UK

It is important that companies do not get so distracted by the UK’s departure from the EU that they miss out on key methods of improving productivity.

The 2018 Artificial Intelligence S e c tor D e a l m ade c le a r t he government’s intention to ensure that the UK realises AI’s full potential. As well as setting out a plan to improve the supply of AI skills in the UK and ensure that the UK remains a world cl a s s hotb e d of R&D and tech entrepreneurship, the sector deal discusses how manufacturing could progress the sector and harness AI to improve the ma nu fac t u r i ng of goods.

AI is not being used to its full potential A lt hough t he major it y of manufacturers are aware of the benefits that AI can bring to their business, less than a quarter of

manufacturers are currently using it.

There could be several reasons fo r t h i s , i n c l u d i n g l a c k o f awareness of the market and not having the capacity to engage with the technology.

T o c o m b at s o m e o f t h e s e challenges, manufacturers who have successfully incorporated AI and have seen positive effects sho u ld sh a r e b e s t p r ac t ic e, whether in online forums, events or publications.

Staying ahead of the game With the AI Sector Deal attempting to make headway in improving the AI skillset, it is also important that manufacturers ensure that they are up to date with progressions in the market and that individuals take relevant courses when possible.

Though t he majorit y of companies still have time to do horizon scanning for technology, this figure has dropped since 2016.

It is possible that, with companies having to keep up with what Brexit means for their business over the past three years, they have been redirecting their priorities elsewhere.

As such, it is important that companies do not get so distracted by the UK’s departure from the EU that they miss out on key methods of improving productivity.

Of course, it is unlikely that AI will be relevant to every business.

As with any technology, it should only be implemented when it makes business sense for the company.

However, for those companies that it is relevant to, it is important that they take full advantage of the UK’s expertise and live up to the expectation that the industry is most likely to fully harness and capitalise upon it.

Sources: M ake UK Manufacturing Outlook Survey 2018 Q2 and Make UK Business Trends Survey 2019 Q1 Images: 1 . (Pictured above) Not baking a cake Marshall-0602, taken by Oliver Drury at Kirkbymoorside. Shortlisted in the Professional Future Technology category of the EEF Photography Competition 2018.

2. (Pictured left) Loading the freeze drier F reeze drier, taken by Greg Harding at Biofor tuna in Liverpool. Shortlisted in the Professional Future Technology category of the EEF Photography Competition 2018.

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Manufacturers drive innovation in AI technologies PARMINDER LALLY Associate, Appleyard Lees IP LLP

Manufacturers’ need for speed and efficiency is driving the creation of ‘smart factories’, which utilise artificial intelligence and the Internet of Things to improve processes.

JULIA GWILT Partner, Appleyard Lees IP LLP

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a n u f a c t u r e r s a r e number of AI patent applications a blast furnace. A single Organization (WIPO) it c o m i n g u n d e r being filed by companies in the blast furnace may be was found that patents As both domestic and foreign competition i nc re a si n g pre s s u re manufacturing field. used to produce steel for related to industry and continues to drive innovation in manufacturing, to produce products faster and multiple customers who manufacturing are the number of inventions coming out of the more cost-effectively than ever What’s patentable in the require different types of mainly owned by IBM manufacturing industry, as well as patents before. This need for efficiency supply chain? steel. AI can be used to and the Chinese stateprotecting these innovations, will increase. and speed across manufacturing control the blast furnace owned electric utility is driving innovation in the form We are seeing AI being used in op er at ion i n a s te el c omp a ny, S G C C (s e e of ‘smart factories’, which utilise every stage of the supply chain. manufacturing process based on to schedu le t he operat ion of WIPO (2019), WIPO Technology leading-edge technologies such Consider the automotive industry the required production rate and machines based on the type of car Trends 2019: Artificial Intelligence, as the Internet of Things (IoT) as an example. batch size, a raw material grade, being produced.

G e n e v a : Wo r l d I nt e l l e c t u a l and artificial intelligence (AI).

Mining companies use AI to a product grade, and chemical Many of these uses of AI in Property Organization). A report by A s t hey in novate to improve operate mining systems and to composition of the product. i ndu s t r y a re p atent able . I n the UK Intellectual Property Office their own tools and processes, schedule mining operations to S te e l m ay a r r ive at a c a r most countries, it is possible to states that manufacturing and m a nu fac t u rer s a re evolv i n g extract raw ingredients, such manufacturing plant for use in patent the use of AI models and consumer electronics firms such from producers of product to as iron ore, from the ground. making various components of algorithms for specific purposes, as Sony, Samsung and Siemens i nventor s of s of t w a re -b a s e d Companies may need to extract a cars, such as the chassis or body such as analysing images collected are among the companies filing manufacturing technologies. certain weight and quality of iron panels. Computer vision, possibly by cameras in a factory to identify the most patents for AI inventions From a commercial perspective, ore each month. AI algorithms can combined with robotic arms, may defects in products, or to determine (see Artificial Intelligence – a software or AI innovation that create a schedule to control mining be used to inspect parts, detect if machines are working correctly worldwide overview of AI patents). makes the manufacturing d e fe c t s or p e r for m or at the expected speed.

The report highlights that the UK processes more efficient, q u a l i t y c o nt r o l at AI sector has seen its patenting This need for efficiency and speed across sa fer or more rel iable, each stage of the car UK AI sector patenting activity more than double over the manufacturing is driving innovation in the form can give manufacturers assembly process. AI activity has double in the past decade, and that UK-based of ‘smart factories’, which utilise leading-edge a competitive edge that can also be used to past decade applicants rank sixth worldwide should be protected from predict bottlenecks, in terms of the absolute level of AI technologies such as the Internet of Things use by third parties. While l i m i t a t i o n s , a n d As both domestic and foreign patenting activity.

(IoT) and artificial intelligence (AI). patenting software and AI m i s t a k e s i n t h e competition continues to drive can be more difficult than f a c t o r y b e f o r e innovation in manufacturing, the patenting a physical product, it is systems based on these targets, t h e y o c c u r . A s i n g l e c a r number of inventions coming out Sponsored by certainly possible. and may also be used to analyse manufacturing plant may produce of the manufacturing industry, as A s i n d u s t r y c o nt i nu e s t o ge ophysic a l dat a to ident i f y different cars, or a single car with well as patents protecting these adopt AI and human workers are potential sites for new iron mines. variable features and fittings. AI inventions, will increase. replaced by machines, we expect Once extracted, the iron ore may could be used to optimise resources I n a re c ent rep or t by t he there to be an increase in the need to be converted into steel in when producing different cars, World I ntel le c t u a l P rop er t y

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Digitalise or compromise? Making 4IR work for all manufacturers With trade wars and waves of nationalistic discontent impacting global markets, British industry faces serious challenges. Government and industry must act now to avoid falling behind.

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rom rising material costs to skills shortages, manufacturers are having to work ha rder t ha n ever to stay competitive.

T raditional industr y in the UK is also experiencing a productivity-growth slowdown, which has seen it fall behind its European peers. This gap is now being further accentuated by the advent of digitisation, a s ot her cou nt r ies sei z e t he opportunity posed by this fourth industrial revolution.

sector, but government must take it forward proactively regardless of external events or changes of government.

To ensure the Strategy is used over the long term to drive the solutions needed, the Industrial S t r at e g y C o u nc i l s ho u ld b e relaunched as a statutory body, drawing on the learnings of the huge successes of the Committee on Climate Change.

We must support SMEs

However, prov id i ng st ronger oversight and continuity is only part of the solution. We also need to solve the issues with adoption of industrial digital technologies (IDTs) among that long tail of less productive companies.

To do this will require more manufacturers to be magpies, rather than ostriches; that is, to look for the opportunities in technology adoption, not stick to what they know. But to do this, businesses and their leaders will need support.

T wo t h i n g s n o w n e e d t o happen, as a matter of urgency.

Both build on the successes of the Made Smarter pilot in the

While huge leaps have been made by many of our global companies, the UK still has a ‘long tail’ of les s produc t ive compa n ies – t y pic a l ly sma l ler bu si nes ses – who are lagging behind their international competitors.

We must act to support our SMEs, close the gap with our compet itors a nd g rasp t he o p p or t u n it y t o ad d r e s s o u r productivity challenge. To do so will require positive action by both business and government.

The Industrial Strategy provides a strong base from which to strengthen the UK manufacturing

Uptake of digital tech will bolster production

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North West, where the first 60 businesses engaged are already forecasting an additional £ 45 million in gross value added to the region’s economy.

First, the government should add to the Made Smarter programme, drawing on the learnings of other models that have sprung up across the country such as Liverpool’s L C R 4.0 a nd t he Susta i nable Advanced Manufacturing programme in Sunderland. And then, very quickly, this up-rated Made Smarter programme must be rolled out across England.

The advent of a f fordable industrial digital technologies presents an incredible opportunity for our manufacturing sector, but gover n ment mu st ac t to support adoption among the SME industrial base. The countries who seize this opportunity will shape the future and those who fail to do so will be shaped by it.

BEN CARPENTER MERRITT Policy Manager, Manufacturing, Policy Connect

Affordable industrial digital technologies present an incredible opportunity for our manufacturing sector.

Sources: 1. McKinsey, 2018. Solving the United Kingdom’s productivity puzzle in a digital age. McKinsey Global Institute.

Online. Available at: https://www.mckinsey.com/featured-insights/regions-in-focus/solving-the-united-kingdoms-productivity-puzzle-in-a-digital-age [Accessed 28 October 2019].

2. C BI, 2017. From Ostrich to Magpie. CBI. Online. Available at: https://www.cbi.org.uk/articles/from-ostrich-tomagpie-increasing-business-take-up-of-proven-ideasand-technologies/ [Accessed 28 October 2019].

3. Made Smarter, 2019. Figures supplied directly.

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Ignore sustainability at your peril Attitudes toward sustainability are changing rapidly and industry needs to keep pace. Sustainability is no longer a nice to have; it’s a critical issue for manufacturing industries that are serious about growth.

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n a 2014 report into attitudes toward sustainability published by PwC, just 5% of CEOs predicted that sustainability and climate change would be the next big issue to impact business.1 Barely five years later and things are ver y different. “A sur vey published in the Telegraph showed that 69% now feel the issue is critical,” explains Colin Elkins, Globa l Indu st r y Di rec tor for Process Manufacturing at global software solutions company IFS. The shift in attitude mirrors the changing demands of today’s consumers. While exact p erc ent a ge s d i f fer, re s e a rch conducted by Accenture, McKinsey and Nielsen all report that more than 70% of consumers would be prepared to pay more for products that have sustainable credentials.

Elkins cites the chocolate market as just one example of the case in point. “The chocolate market saw overall growth of 3% last year, but products with environmental claims grew by 22%,” he says.

Facing the challenges The desire for change is certainly there from a consumer perspective, but it’s not without its challenges MEDIAPLANET

– particularly for industries that have complicated supply chains and those that outsource elements of production.

It’s not just a case of monitoring what your suppliers are up to either. “We know that just 20% of greenhouse gases are produced by the manufacturers themselves – t he ot her 8 0 % c ome f rom moving parts and goods around,” reports Elkins.

But that’s no excuse to pass the buck. Plenty of companies are thinking creatively about how they work with their supply chains to ensure sustainability and mitigate their environmental impact.

Offsetting carbon used to be the knee jerk reaction of industry, but ‘insetting’ has been a concept that a growing number of companies are embracing. And technological advances are helping them to do it.

Embracing technology Artificial Intelligence and what Elkins refers to as ‘connected assets’ are all helping industry to plan and monitor their activities more efficiently. By applying such tools to their current models, companies can improve planning, work out where inefficiencies lie,

and track and trace products and components more effectively.

For example, Coca Cola have used intelligence to relocate factories closer to their raw materials; tomato growers in Suffolk are using waste to heat their greenhouses; a nd s up er m a rket s a re u si ng GPS tracking to move produce more efficiently.

H o w e v e r, E l k i n s b e l i e v e s t hat i ndust r y needs to go even further when it comes to investing in sustainability. What has been dubbed t he Fou r t h Industrial Revolution is bringing technologies such as artificial intelligence, Blockchain and the Internet of Things to the forefront.

IFS are currently developing s of t w a re to ol s t h at h a r ne s s machine learning to help companies forecast more effectively. They are also looking at ways that other technologies like IOT and Blockchain can be implemented to mon itor and improve supply chains.

Money talks It’s clear to see how reducing water and energy consumption, minimising waste, decreasing dangerous emissions, and reducing

COLIN ELKINS Global Industry Director, Process Manufacturing, IFS

We know that just 20% of greenhouse gases are produced by the manufacturers themselves – the other 80% come from moving parts and goods around. inefficiency can reduce cost and improve productivity. But beyond these economic benefits, taking a more sustainable approach helps companies to position themselves as responsible corporate citizens – something that appeals to savvy stakeholders and investors alike.

“There are dramatic changes and accelerating progress when i t c o m e s t o s u s t a i n a b i l i t y.

Companies that recognise this are the ones that will still be in business in five years’ time,” says Elkins. “Those that don’t won’t. It’s as simple as that.”

as ‘compostable plastic’ can’t actually be put in the compost is just one example of how confusing it can be.”

El k in s doesn’t bel ieve t hat legislation is the answer, however.

The clear economic benefits should be enough to drive more businesses to make the shift to sustainable activities. The next question is how they share the good they are doing with consumers in a way we can all understand.

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Clear, transparent and accountable The final piece of the jigsaw puzzle is how industry communicates all they are doing to consumers.

“We need more standardisation and it needs to be more comprehensible,” admits Elkins.

“The fact that packaging labelled

Sources: 1. https://www.pwc.com/gx/en/sustainability/ceo-views/ assets/pwc-ceo-summary-sustainability.pdf

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People no longer buy products; they want a full service experience Digital transformation is allowing process manufacturers to build connected supply chains and forge closer links with customers.

Rob Sinfield, VP of Product, and Iain Lewis, Manufacturing Solutions Consultant at Sage, discuss how digital transformation is improving process manufacturers’ links to their customers.

How do you describe It ’s a f u n d a m e nt a l You see the same development they may have subcontracted. process manufacturing sh if t as manufac t urers with consumers in all walks of life They are then linked to sales to distinguish it from other rea l ise t heir c ustomers have where they are swapping making a and marketing tools that track the types of manufacturing? moved from buy ing item s to purchase to leasing, for example, a products (and any accompanying

INTERVIEWS WITH:

E s s e n t i a l l y, i t c o m e s down to putting different i n g r e d i e n t s (a r e c i p e o r a formulation) into a process to make a finished product. Food and beverages, pharmaceutical and chemicals are key industries for process manufacturing.

You tend to get two different types of process manufacturing: ‘c ont i nuou s ’ a nd ‘ b atch’. I n continuous, you have a line that rarely shuts dow n because a process is so expensive, like a foundry making iron or a refinery processing crude oil.

Then you have batch where, as the name suggests, products are made in batches and the key is to get it consistently right. If there is a problem, you need to know which batch it came from so it can be remedied. (RS)

ROB SINFIELD VP of Product, Sage X3 INTERVIEWS WITH:

wanting outcomes.

Rather than, for instance, just wanting t urbines, an energ y company is buying the outcome of being able to provide a certain number of gigawatts of power. So, it is not just a case of combining materials to make turbines but also including a ser vice plan that ensures the customer can consistently deliver what their customers need, without delay or problems. You can see the same trend across many industries.

Companies are choosing to lease and have monthly repayment pl a n s r at he r t h a n m a s s ive, up-front outlays on assets. In business terms, it’s a move from capital expenditure to operational expenditure.

services) being sold to the end customer. Here’s where it can be really interesting because, once your systems can reach out to customers and let them in, you can star t bui lding long-ter m relationships. Rather than just sell somebody something and have them wait the agreed time for it to be delivered, you can instead give regular updates on the process of their order. It’s a great way of keeping customers involved and close to you. (RS)

car. Businesses and end consumers are all shifting from consumption to subscription. (IL)

What effect has digital transformation had on the industry?

P rocess manufact ur ing is operating in the digital economy – or web economy as it’s often referred to – just like any other industry.

In the past, digital technology might have been used in the processes a manufacturer was running but, now, we’re seeing end-to-end digital transformation.

Digital systems are being used across the supply chain to link up the various partners and anyone

How is digitisation and ser v itisation affecting the work force in the process manufacturing industry?

The State of UK manufacturing

IAIN LEWIS

Manufacturing Solution Consultant, Sage X3

£45BN

Manufacturing in the UK contributes around £45BN to our GDP every quarter.

‘Servitisation’ is a term • EEF:in Factory output is on often used modern course to increase by 2pc process manufacturing. this year, outpacing the of theimpact economy.

What is it and rest what The Manufacturer: is it having on• the industry?

44%

In 2017, 44% of the value of all UK exports were manufactured goods.

Top 5 priorities for manufacturing growth

On current growth trends, Britain could break into the world’s top five industrial nations by 2021.

£4.4BN

AFRICA £21.8BN

exporting to?

NORTH AMERICA

EU

£46BN

Jan-Oct 2018

£142BN

Value of the Pound

Skills

Robotics

Automation

“Great tax regime, take the long term view”

“Hedge for volatility, make the most of global competitiveness”

“Invest in education, source skills globally”

“Look for efficiency in re-tooling and repurposing”

“Think AI, machine learning and process automation”

Investing in skills

£3.4BN

£1.8BN INFORMATION SERVICES

MOTOR

£4.1BN

ANZ

R&D and innovation

Top R&D sectors by spend

PHARMACEUTICALS

It’s a fundamental shift as manufacturers realise their customers have 5 moved from buying items to Top outcomes.

Who are wanting we

We’re seeing a huge shift in how people work in the industry. Employers are worried about access to the best talent to overcome the skills gap in British industry – something that has been well documented.

The result is many ASIA manufact urers are no longer £50BN placing people in one role, they

AEROSPACE

£1.9BN

47% of manufacturers are increasing training programmes for existing employees.

6 BUSINESSANDINDUSTRY.CO.UK Leading the way: British manufacturing giants

Lean and hungry!

37%

20%

of manufacturers are increasing apprenticeship and/or graduate recruitment programmes.

of manufacturers are improving salaries and conditions to attract and retain the best staff.

What the experts say

In Q2 2018, manufacturing productivity was 13% higher than the UK average.

UK manufacturing ranks in the top third of 25 countries surveyed by the Economist Intelligence Unit for Automation Readiness.

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“The UK still has one the best designed R&D tax credit regimes in the world, one that is particularly beneficial to

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Servitisation delivers customer outcomes, not just goods Process manufacturers are starting to bring capacity back home and that is exposing a skills gap schools and industry must work together to fill.

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want to train them to do a wide variety of jobs. It’s a great way of making companies remain productive, because they’ve always got people who can cover for one another.

Someone could be running a process one day, or operating a machine, and then the next they’re talking to potential clients at a trade show.

It makes working in the industry a lot more enjoyable for people, too, because they get a wide variety of roles, so they’re not bored, stuck in one process always doing the same job.

In times of economic and global uncertainty, what is the best way for the manufacturing sector to move forward? And, how?

A f ter sur vey ing 9 0 0 companies across the UK, USA and Canada, we found a very clear trend: process manufacturers want to bring production closer to home, usually for the greater security it affords.

This either involves onshoring or nearshoring production and is often prompted by concerns over rising costs, distance and quality. The traditional offshore production bases in Asia no longer offer the kind of large savings t hey used to as labour costs have risen. Companies like to have production nearer to home, where they can keep an eye on quality and react more quickly to market movements.

Th i s i s hav i ng a k nock- on effect on companies that need to concentrate on bridging the skills gap and addressing their social responsibility. As the jobs come home, or closer to home, it can highlight a need for people to b e t r a i ne d i n p a r t ic u l a r MEDIAPLANET

The traditional offshore production bases in Asia no longer offer the kind of large savings they used to as labour costs have risen. processes. It also brings pollution closer to home and so process manufacturers are needing to think a lot more carefully about how they manage their carbon footprint. (RS)

I s i ndu s t r y b e i n g affected by external factors?

One of the huge issues that all process manufacturers are having to grapple with is the skills shortage. It’s seen a major risk and, like any organisation, each compa ny is keen to de -r i sk. That mea n s process manufacturers are keen that the countries where they operate are attractive to immigration and that they can bring in skilled workers with minimal hurdles.

There is a huge role for education here. From what many of us are seeing, it’s not as skills-based as it used to be and we seem to have lost the tradition for companies to routinely take on apprentices and train them up. A lthough governments are making in-roads in encouraging apprenticeship schemes, they don’t seem to be as popular or as common as the days when everybody ran schemes automatically. (IL)

What has been shaping how new investments are made?

The biggest move is for proces s ma nu fac t u rers to digitally transform and link up their entire supply chains to connect themselves (and the processes and machines they run internally) with customers and suppliers, all on a single platform.

There is also a big shift in how this is being achieved by moving from capital expenditure (CapEx) t o o p e r at i o n a l e x p e n d it u r e (OpEx). This is a ref lection of wider customer behaviour and businesses are tapping into the security of knowing they have regular, fixed costs that go out each month. It’s a lot more predictable than having to find a massive sum of money to invest in new systems that are owned outright but then need to be replaced regularly.

WRITTEN BY: SEAN HARGRAVE Read more at poweringbritishindustry.co.uk and get your copy of the Manufacturers toolkit from Sage, the largest UK-based ERP provider.

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r o c e s s m a nu f a c t u r i n g i s s e ei n g f u nd a ment a l change as customers are demanding a ‘wrap around’ service that opens up the opportunity for longer-term relationships, wh ich ex tend beyond simply selling products.

According to Iain L ew is, Manufacturing Solutions Consultant at Sage X3, this shift towards ‘servitisation’ is being aided by digital technology.

Sophisticated software platforms allow sav v y manufacturers to streamline operations beyond their own factory floor to allow customers to be kept up to date with orders and service queries.

The result is an industry that is beginning to look unrecognisable from a few years ago and working closer with customers to add new stages to the traditional manufacturing cycle. “ We’re mov i n g aw ay f rom t he c ycle of ‘m a ke, sel l a nd use’ to an industry that serves environmentally-aware customers far better and offers complete traceability to aid their social responsibility commitments,” says Lewis.

“That means the industry is now moving to a cycle of ‘make, sell, provision, service, refurbish, break down and recycle’. Process m a nu f ac t u r i n g d o e s n’t j u s t provide goods anymore, it delivers on the customer’s desired outcome and, for that, they need a service.

That requires not only suppliers to be connected on their platform, but also customers, so they can find out how their orders are progressing or when existing items are due to be ser v iced or replaced.”

Customers want to understand end-to-end processes This move means every successful process manufacturer must now answer these questions: ‘Where do they provide customers the most value?’ and ‘Where is their unique selling point in the marketplace?’

“Process manufacturers need to organise themselves around the customer to find out where their clients see value and focus on that point, because different customers will have differing priorities that need to be addressed, now they are buying more than just goods on their own,” explains Rob Sinfield, VP of Product, Sage X3.

Moving production processes closer to home These changes in the industry are prompt ing many process manufacturers to rethink where their products are made and how far their supply chains reach.

One of the key findings from the recent “Riding The Wave Of Uncertainty” report, published by Sage, was that many are bringing production back to the UK or nearshoring it.

Production costs are rising in areas where manufacturing has traditionally been offshored.

Businesses are also feeling a need to bring production nearer to home where t hey h ave a greater control and visibility over sustainability and traceability, creating a demand for a wide variety of jobs and, at the same time, exposing a skills gap.

“Process manufacturers are telling us they see the skills gap as a risk and, like all organisations, they are keen to de-risk their operations,” adds Rob Sinfield.

Repetitive roles are being replaced by robots “ Pa r t of t he i ssue i s t hat manufacturing has not t rad it iona l ly be en se en a s a particularly ‘sexy’ industry to work in. We clearly need to tackle that because a lot of the repetitive jobs people may associate the field with are being replaced by robots. That moves people on to programme the robots, to design new systems, to get involved with marketing and understanding customers as well as liaising with executives in the supply chain. There is a far wider variety of roles in the industry now.”

For Si n f ield t he a n s wer to closing the skills gap is clear. More work needs to be put into ensuring pupils leave school with STEM and business qualifications, and are then attracted by industry into apprenticeships.

This will ensure British process ma nu fac t u rers ca n de-r isk bringing production home, or nearer to home, and ensure they can work closer than ever with customers who are deserving a more rounded service rather than just a date their goods will be delivered.

WRITTEN BY: SEAN HARGRAVE

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We’re still one of the top ten manufacturing nations The figures don’t lie. The UK is among the top ten international manufacturing nations. It is integral the sector’s success continues to benefit the UK economy.

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he United Kingdom h a s a lo n g h i s t o r y o f manufacturing. The Industrial Revolution, which marked a major turning point in global development, began in this country.

Almost every aspect of modern l i fe w a s i n f luence d i n some way by t he bi r t h of moder n business, born in the British manufacturing sector. Although the manufacturing sector’s share of both employment and the UK’s GDP has steadily fallen since the Second World War, OECD data shows that manufacturing output in terms of both production and value has steadily increased over the same period.

Economic success in the UK is partly powered by the manufacturing industry The l ate s t M a ke U K a n nu a l compendium of manufacturing facts and figures highlights just how integral industry success continues to be to the health of the UK economy overall.

The figures provide an important reminder that the UK is still one of the biggest manufacturing nations. We want to see policy

makers re-booting the industrial strategy, working with industry to help move UK manufacturing up the rankings.

The topline fig ures show that manufacturing accounts for two thirds of overall R&D, 45% of exports, 15% of business investment and 2.7 million highvalue jobs.

Seven top export destinations are in the EU This years’ analysis could not be coming at a more timely point in the economic and political cycle, as the critical importance of the UK agreeing a deal with the EU, which avoids barriers to trade, is laid bare.

While exploring new markets is vital, we cannot avoid the geography that shows the value of trade with the bloc is worth more than twice that of the United States, with seven of the UK’s top export destinations being within the EU. Access to the EU is a priority for UK manufacturers While it is true that the United States is the biggest export market,

8 BUSINESSANDINDUSTRY.CO.UK

SEAMUS NEVIN Chief Economist, Make UK

Transport (25.5%) and pharmaceuticals & chemicals (17.9%) sectors dominate the export picture of manufactured goods. This highlights the importance of these sectors to the success of the UK industry overall – with focus on the aerospace and automotive sectors in particular. worth £118.2bn, exports to the EU amounts to more.

The importance of our near neighbours as export markets for UK goods cannot be overlooked.

This countr y stil l sel ls more to I rela nd (£ 38. 3bn) t ha n to China (£23.1bn).

C le a rly ge og raphy m at ters in international trade. For UK manufacturers, access to their biggest market remains a priority.

T r a n s p o r t (2 5 . 5 %) a n d pharmaceuticals & chemicals (17.9%) sectors dominate the export picture of manufactured goods.

This highlights the importance of these sectors to the success of UK industry overall – with focus on the aerospace and automotive sectors in particular.

The importance of these top two exporting sectors is also reflected

i n cont r ibut ion s to busi ness R&D, where pharmaceuticals & chemicals and the transport sector accounted for almost 70% of the total spend.

The transport sector also led the way in export growth, increasing by 7.4%, largely on the back of continued growth in aerospace.

Th is was closely fol lowed by food and drink, which increased exports by 5.3%.

are solitary, low paid, ruthless, or short. In fact, the average salary in manufacturing is 13% above the rest of the economy at £33,592, compared to £29,832 for the whole economy a nd way above t he services sector at £29,014.

While the UK has a long history of proud manufact ur ing, t he next few months could be crucial for the future of the industry in this country.

Our analysis makes clear the over whelming impor tance of trade with our closest market and the need to avoid imposing any barriers that will make this more difficult.

The UK must avoid barriers to trade with the EU Food & drink remains the single biggest sector contributing 15.1% of GVA, closely followed by transport (14.9%) and pharmaceuticals & chemicals (14.2%).

The analysis also debunks the myth that manufacturing jobs

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Increasing productivity with robotics and automation Machining with robots is becoming an increasingly popular option for the manufacture of large, complex items across a wide range of materials and applications.

T

he f ut ure of robot ics and automation is being led by innovative companies who are supporting UK manufacturing by developing solutions that not only enhance productivity but also improve businesses competitiveness.

It is widely recognised that manufacturers are facing challenges in an increasingly competitive landscape.

Productivity is being highlighted as a major issue as well as the growing skills shortage. Whilst the UK Is behind the other G7 nations in terms of the number of robots deployed, we are starting to see change. Manufacturers a re t u r n i n g to rob ot ic s a nd automation as it is often a more cost-effective approach and can offer increased production output.

Although the automotive industry has pioneered the use of robots, applications have been developed across all sectors. There are many cases where the main challenge is an extreme working environment that restricts the use of manual methods or conventional machine tools. Robots are, of course, able to operate in more extreme conditions than humans but they are also more tolerant than many machine MEDIAPLANET

tools. They are less susceptible to e x t reme s of temp er at u re and hum id it y, and are of ten more resistant to dust or other contamination, making them less prone to problems in challenging manufacturing environments.

Machining with robots Machin ing w it h robots is becoming an increasingly popular option for manufacturers especial ly when producing

larger parts in plastic, foam, composites and softer metals.

Systems developed have been used to replace many hand-finishing tasks, where robots can provide a faster and more consistent approach than manual operations and eliminate health and safety issues. A g row ing number of software companies now support the programming of robots with multiple axis milling capabilities.

The combination of the robot and the software gives the equivalent benefits to those gained when prog ramming machine tools, including the ability to create toolpat h s d i rec t ly f rom C A D models, together with options to simulate and optimise the programme on the computer.

These options help to ensure that the robot will operate efficiently and safely, giving the desired productiv it y across a l l t y pes of manufacturing.

Robotics in the creative industry As with other industries, the key to the success of robot machining has been the ability to produce larger items more quickly and more consistently than traditional

PHILLIPA GLOVER Managing Director, CNC Robotics manual methods. In addition to the manufacture of film and theatre props, applications include making installations for theme parks and museums, and even carving decorations in ice for the Ice Hotel.

Eliminating health and safety concerns

conventional machine tools are unable to provide a cost-effective solution. The systems developed of ten i nvolve a si n g le rob ot undertaking multiple operations or a series of robots carrying out different stages of the overall process. Successful applications i nclude t he u se of robot s to manufacture temporary storage options during house repairs, to carve ice sculptures and to braid composite fibres for the production of camera tripods.

Whether the problem is an unusual material, a demanding env i ron ment or pa r t ic u la rly c omple x g e ome t r y, rob ot ic s companies with the experience beh i nd t hem c a n work w it h the customer’s staff to pave the w ay a nd develop i n nov at ive approaches to solve complex manufacturing challenges.

As well as being able to produce c omple te ite m s, r o b o t s c a n undertake a variety of finishing operations. Using robots gives greater consistency than manual trimming, as well as being quicker in most cases. Reliability can be further enhanced by fitting the robot with an inspection probe initially to ensure that the part is in the correct position before cutting starts. In addition, using robots el im inates t he hea lt h and safety concerns resulting from demanding and repetitive manual operations.

Find out more at: cncrobotics.co.uk

Bespoke applications

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Addressing mental health within the workplace Perceptions of mental health issues are changing for the better, as more is done to raise awareness of the problem. In the UK alone, mental health problems are estimated to cost employers between £33 billion and £42 billion per year.1

M

anufacturing and engineering firms are doing more than any other sector to raise awareness of mental health issues among their employees, according to a new survey by the Manufacturing Technologies Association (MTA) 2 and Close Brothers Asset Finance.

Work-related stress, depression and anxiety are among the most common forms of mental illness in the workplace The survey looked across a range of industries, including food and drink, retail, recruitment and services. It found that 65% of manufacturing and engineering firms are actively taking steps to

raise awareness, as opposed to 55% of other sectors surveyed.

When thinking about the future of manufacturing, we often go straight to the image of automated production lines w it h robots carrying out many of the tasks.

It must be remembered that the human element in manufacturing and engineering is the most vital part to the process.

We must not forget employee wellbeing when implementing new tech A s m u c h a s we d e p e n d o n t e c h n o l o g y t o i m p r o ve o u r productivity, we must also pay the same due care and attention to our employees’ mental health.

More than half (53%) of manufacturing and engineering companies were more likely to have changed their attitude towards mental health than the total (45.2%), which is a huge step in destigmatising the problem and encouraging more people to seek help.

10 BUSINESSANDINDUSTRY.CO.UK

Just l i ke a C NC (Computer Nu mer ic a l Cont rol) mach i ne has preventative maintenance scheduled in to avoid too much down time, we should be looking to implement this same sort of due care to our employees.

The most successful interventions combine primary prevention strategies, such as reducing psychosocial risk factors, w it h seconda r y i nter vent ion strategies, for example, improving workers’ ability to deal with stress.

He lp i n g e mp l o ye e s b e t t e r understand their emotions and factors that lead to mental health issues can be key to improving employee wellbeing.

Rise in mental health absences in last year helps to destigmatise the concept Looking at the survey as a whole, it would suggest that mental health issues are more commonplace within the manufacturing and engineering sector with 51% of companies reporting an employee taking time off because of this in the past year.

In other industries this number was still significant at 39%. More manufacturing and engineering

JAMES SELKA DL CEO, Manufacturing Technologies Association

More manufacturing and engineering (50.4%) companies reported that there had been an increase in the number of employees reporting mental health issues in the past three years than the total (37.9%).

(50.4%) companies reported that there had been an increase in the number of employees reporting mental health issues in the past three years than the total (37.9%).

With this increase in mental health issues being reported, we’re also seeing attitudes of employees changing for the better M o r e t h a n h a l f (5 3 %) o f manufacturing and engineering compa n ies were more l i kely to have changed their attitude towards mental health than the total (45.2%), which is a huge step in destigmatising the problem and encouraging more people to seek help.

With increased awareness of how mental health affects the workplace a mong employers, employees and society, so we are

better able to understand the issue.

The workplace is t he idea l environment to raise awareness of mental health issues and to offer accessible treatments.

The Health and Safety Executive (HSE) estimate that one in four people will experience a mental health problem at some point during their working life. It is encou rag i ng to se e so ma ny manufacturing and engineering fir m s a re bei ng proac t ive i n tack ling the issue among their workforces.

Sources: 1. https://www.centreformentalhealth.org.uk/news/mentalhealth-problems-work-cost-uk-economy-ps349bn-lastyear-says-centre-mental-health 2. Survey by the Manufacturing Technologies Association and Close Brothers Asset Finance

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5G promises 1% improvement in factory productivity

ROBERT DRIVER Head, UK5G

With the government predicting that 5G will achieve £173bn incremental revenue in its first decade, UK factories have been running trials of this new technology for just over a year.

I

nitial results suggest that manufacturing could see a 1% increase in productivity from this new technology thanks to i mprove d ser v ice qua l it y, i nc re a s e d u nder s t a nd i n g of machine health and decreased machinery downtime.

Reducing machinery downtime Sensor networks in a factory are not hing new. But 5G enables the connection of considerably more sensors in the same area a nd rea l-t i me dat a a na lysi s, both of which can improve a factory floor manager’s decision making process. This idea of a dense sensor network gathering data on pressures, vibrations, temperat u res a nd more, i s t h e M a s s i ve M a c h i n e T y p e

When comparing the speed of 4G and 5G-connected robots, Nokia found that the latter offered huge 260% productivity gain thanks to 5G’s significantly lower latency.

Communications pillar of 5G. Worcester Bosch is one of the companies leading the charge in the trials of 5G in manufacturing.

The team there believe that 5G has the potential to increase the efficiency of their plant by using such a sensor network to reduce the amount of time that machinery is out of action. They have installed 100 5G-connected sensors and two high resolution cameras on the factor y f loor.

This equipment currently only focuses on the upstream section of

Ongoing collaboration and communication between the UK Government, the technology sector and manufacturers will be key to ensuring the UK fills this skills gap and maximises the productivity potential of 5G. 12 BUSINESSANDINDUSTRY.CO.UK

production where the components are made as it is more heavily automated than the assembly area.

Improvements to customer service A nother manufacturer in the Worcestershire 5G Consortium, one of the six use case trials funded by the Department for Digital, Culture, Media and Sport of which Bosch is a part, is the machine tool builder Yamazaki Mazak. This company is deploying 5G to save customers time and money and provide a higher level of service quality.

Using a 5G-enabled augmented reality headset equipped with an HD camera and a microphone, an on-site Yamazaki Mazak service engineer can stream exactly what he is seeing to a remote expert and receive step-by-step instructions instantaneously on how to fix

an issue, if he is unclear how to proceed himself. This reduces the risk of service engineers needing to return for a second visit if the first respondent is not trained to handle the issue that he encounters.

Robots work faster with 5G Elsewhere, in Nokia’s ‘factory of the future’, employees work alongside complex sen sor net work s, computer vision technology and autonomous robots traverse the factory f loor. When comparing the speed of 4G and 5G-connected robots, Nokia found that the latter offered huge 260% productivity gain thanks to 5G’s significantly lower latency.

Collaboration is key to success Early participants of 5G trials in manufacturing are starting to sh a re t hei r le s s on s w it h t he re s t of t he c om mu n it y.

Un s u r p r i s i n g l y, s k i l l s h ave emerged as the potential roadblock to deploy ment. A 5G - enabled factory will require employees t hat not on ly understand manufacturing processes, but also the IoT engineering that will

enable managers to make better decisions. Ongoing collaboration and communication between the UK Government, the technology sector and manufacturers will be key to ensuring the UK fills this skills gap and maximises the productivity potential of 5G.

If you’re Interested in getting involved, the UK is hosting the 5G-ACIA international conference and workshop from 20-22 January in Coventry. This is an unparalleled opportunity for UK manufacturers to learn from and influence the global alliance responsible for the development of 5G for connected and automated Industries. Registration is now open for the workshop on the 22nd January, which is organised in partnership with both UK5G and West Midlands 5G. Find out more at:

uk5g.org

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Surface engineering is an integral part of everyday life Screen surfaces and coatings for phones, tablets and other tech are an important and integral part of everyday life. In fact, they have been recognised by the government as one of the 22 UK enabling technologies required to meet the Grand Challenges of the Industrial Strategy and ‘Manufacturing our Future’.

W

e now rely as much on coatings as we do our smart phones, tablets a nd te ch nolog y-packe d c a rs, which are all covered in coatings.

The UK still heralds as world innovators in coating development and the industry is continually striving to close the gap in our abi l it y to del iver y mo der n manufactured coatings.

The manufacturing capability readiness level (M C R L) i s a m e a s u r e developed in the USA to assess and easily describe the maturit y of m a nu fac t u r i n g readiness, like how technology

readiness levels (TRL) are used for measuring technology maturity.

They are used to provide decision makers at all levels with a common understanding of the relative maturity and attendant risks associated with manufacturing technologies, products, and processes b e i n g considered.

Manufacturing risk identification and management must begin at the earliest stages of technology development and continue vigorously throughout each stage of a prog ram mes’ life cycles.

The internal landscape for coatings If we look at the internal landscape for manufactured coatings, (the manufact ur ing process itself and how we ma ke coat ings), then there are many examples of mature coatings (high MCRLs), which include electro-plating on car parts, cutlery and jewellery to make things shiny and paint on our walls to protect them and make them look more presentable.

Lower MCRLs might include processes such as electron beam physical vapour deposition, which is used to produce coatings on spaceships and complex parts for aeroplanes.

DR BRYAN ALLCOCK FIMMM IOM3 Strategic Advisor and CEO, TRL9 Limited External landscape for coatings I f we l o o k a t t h e e x t e r n a l landscape for coatings, we look at what people use coatings for.

These are coating applications.

High levels of maturit y exist i n automot ive a nd aerospace applications, but new applications are being developed every day.

Some of the newer coatings can be used, for example, to create a textured surface capable of separating oil and water mixtures, contr ibuting to reducing our i mp ac t on t he env i ron ment and our planet. Other coatings can convert heat to electricity, these are called thermo-electric generators and researchers are developing coating materials that you can wear, which capture the heat from your body and convert t hat to enough elect r icit y to charge your smart watch.

Surface engineering community needs to modernise By far the biggest consumers, by value, of surface engineering are the high value manufacturing

14 BUSINESSANDINDUSTRY.CO.UK

indust r y sec tors such as t he aerospace, automot ive a nd energy sectors. When comparing internal landscapes, the method of manufacturing and the modern m a nu fac t u r i n g ph i lo s oph ie s – such as Industry 4.0, cyber– physical connectivity and the industrial Internet of Things – the surface engineering community i s s e en to l a g b eh i nd ot her sectors, for example, additive manufacturing. This is now being actively addressed through the Institute of Materials, Minerals and Mining (IOM3), with the sur face eng ineer ing d iv ision playing an important role in the tech n ica l com mu n it ies, who collectively represent the whole of the materials cycle. IOM3 actively collaborate with universities and industr y through the Surface Engineering Forum (SELF) who are helping to coordinate efforts to i ncrease produc t iv it y a nd Manufacturing our Future.

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