The Manufacturer Feb 2015

Hot Topic Once more into the breach What good things are to come in 2015?

Special Feature Manufacturing a shift in perception What drives the North East’s industrial revival?

Manufacturing Leadership The countdown is on Time is running out to book your place for EEF’s flagship conference

Workforce & Skills Schooling business Just how do employer/education linking programmes provide opportunities for businesses?

What’s driving a new wave of urban manufacturers?

Finance & Professional Services Blasting offshore wind Discussing the major investments made in 2014

Manufacturing Technologies A vision of the future through Autodesk’s eyes Autodesk executives uncover the trends that will disrupt manufacturing In partnership with:

INTERVIEW Peter Digby Managing Director, Xtrac

www.themanufacturer.com | February 2015 | Vol 18 Issue 1

François Terrade MD, Cross Border Receivable Finance GE Capital

David Meltham Group Finance Director Vita Group

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Welcome

EDITOR’S INTRODUCTION

M

aybe it’s because I’m Australian; maybe it’s because I’m a journalist who does his best to deal with the never ending pressure of deadlines.

Whatever the reason – I love beer.

24

38

52 Hot to pic

once mor What goo e into the brea in 2015? d things are to ch come

Specia l Featur e Man

ufac percepti turing a shift in on What drive industria s the North East l revival? ’s

ManuFac leader turing SHip

the cou ntdo Time is runn wn is on your plac ing out to boo conferen e for EEF’s flag k ship ce

WorkF orce &

SkillS Schooling Just how business do linking prog employer/ed ucation rammes opportu provide nities for business es?

What’s new wadriving a manufacve of urban turers?

Finance proFeS & Servic Sional eS

Blasting offshore Discussin wind g investme the major nts mad e in 2014

The old adage of space and its corresponding premium rings true more than ever in the nation’s capital. Yet still there are those who are looking at available space in a totally new light. Whether it’s the aforementioned microbreweries or a bespoke, smallbatch component manufacturer using the latest additive manufacturing techniques, these businesses are finding ways to reinvigorate the industrial landscape within the city limits. And the leading factor in their success? Technology.

If manufacturers of all sizes haven’t yet realised that technologies such as 3D printing and additive manufacturing will disrupt the manufacturing landscape more so then they already have, then it will be to their extreme disadvantage.

As Ruari McCallion reports in his piece on urban manufacturing (p32), 3D printing has been the crucial breakthrough technology that has enabled mass customisation, no matter where you sit on the value chain. It is this ability of customisation and flexibility which is enabling micromanufacturing to secure its place in the market. While microbreweries aren’t exactly 3D printing their latest batch of elderflower-infused saison, they have the ability to be extremely flexible in what and when they make, giving them a very lean and streamlined approach to market.

There are obviously benefits to being a consumer-facing maker in the micro market. We have covered before the idea of companies 3D printing custom products directly for consumers.

Normal, a headphones manufacturing business based in Manhattan, New York takes a scan of the customer’s ears from a smartphone app and relays

ManuFac tecHnoloturing gieS

a vision of through the future autodesk Autodesk ’s eyes uncover executives the tren disrupt manufac ds that will turing In partners hip with:

What could make or break a new wave of micromanufacturers? P32 intervieW

peter digb Managin y g Director, Xtrac

www.the manufac turer.com |

It’s this love for the amber suds that often leads me to small, craft breweries around town. Tucked underneath train tunnels, hidden in old, formerly unused warehouses, and literally littered all over London and other major cities, these small, artisan breweries are making a mark on not only the beer market, but they are also part of a new wave of urban and micro manufacturers.

Februar y 2015 |

the information to the 3D printers lining the businesses’ walls in its retail headquarters, where the “perfect fitting”, customisable headphones are produced and shipped to the customer.

Simple, yet brilliant – if the product is quality, and this is important.

To be competitive as a small, niche player, quality is crucial. Just ask Simon Middleton of the Great British Banjo Company based out of Norwich (p42). Middleton literally kicked off his business on crowdfunding website, Kickstarter, where his proposal to launch Britain’s first banjo manufacturing business in 60 years became one of the crowdfunding site’s most successful campaigns.

But as Middleton explains, quality was crucial, as was the story that came with his products.

With quality as key and technology allowing standards to be monitored and controlled, it’s little wonder more micro makers are creating and developing new products for market – both direct to customer and businesses. The delightful thing is that this mentality and approach is also allowing these businesses to not only further develop existing products at pace not seen before, but also create exciting new products.

And with another issue of The Manufacturer off to print, it’s about time for a cold one. Happy reading!

Callum Bentley Editor

Vol 18 Issu e1

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 1

Editorial Advisory Board

The Editorial Advisory Board Next generation guidance for ’s editorial advisory board provides insight into the real concerns and interests of manufacturing leaders.

The board guides the editorial team in developing relevant, accessible and useful content which can help British industry keep competitive. With the challenge posed by skills gaps and talent retention a key obstacle before this ambition, decided that the board should include direct input from the next generation of industry leaders and so we are pleased to announce the following two additions to the editorial advisory board.

Beki Davies, Manufacturing Engineer, FLAADS Manufacturing Engineering, MBDA UK Ltd Beki has recently completed a four year advanced apprenticeship in Engineering.

She has completed an ONC and HND in Electronic Engineering and an NVQ level 2 and 3 in Technical Engineering Support.

Beki attends college on day release completing a HND in Electronics and plans to carry on to complete a degree in Engineering. Beki believes her passion and knowledge she has for her job and promoting further education led her to be named ’s Apprentice of the Year 2014 and MBDA’s Apprentice of the Year 2013. She has been awarded with an honorary fellowship with the Institute of Primary Engineers for her contribution to promote engineering.

Campbell Ferguson GCS&S Operations Team Leader, Spirit Aerosystems (Europe) Ltd Campbell was named Young Manufacturer of the Year at the 2014 Manufacturer of the Year Awards.

Campbell is currently leading a new distribution business venture for Spirit in Europe. He relies on years of hard work in an engineering project environment to overcome new challenges and develop his operational and financial business knowledge.

Beki and Campbell will join the board for one year, at which point the 2015 winners of the Apprentice of the Year and Young Manufacturer of the Year Awards will take their places.

2 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Beki Davies

Campbell Ferguson Manufacturing Engineer, FLAADS Manufacturing Engineering, ’s Young Apprentice of the Year 2014

Deirdre Fox

GCS&S Operations Team Leader, Spirit Aerosystems (Europe) Ltd and ’s Young Manufacturer of the Year 2014

Hywel Jarman Director of Strategic Business Development, Tata Steel

Tony Hague

Director of External Affairs, EEF

Richard Lloyd

MD, Power Panels Electrical Systems and Chairman of the Midlands Assembly Network

Andrew Churchill Managing Director, JJ Churchill

Simon Edmonds Director, the Catapults Programme

Steve Evans

Global Manufacturing Director, Accolade Wines

Ben Taylor Assistant CEO, Renishaw Plc

Dave Mooney Managing Director, Drallim Industries

Pamela Petty Director of the EPSRC Centre for Innovative Manufacturing in Industrial Sustainability

Philip Greenish CBE CEO, the Royal Academy of Engineering

Managing Director, Ebac Group

Andrew Peters Director, Siemens Congleton Facility

To find out more about our Editorial Advisory Board and the work they do to improve The Manufacturer magazine’s offering to its readers, go to: www.themanufacturer.com

Workshop storage like no other.

Built to Last in the UK Discover the full story at builttolast.bottltd.co.uk

ABOUT US

Meet the team Nick Hussey Chairman Nick has 20 years of experience in the publishing industry spanning titles in the UK, US, Asia and Australia.

In addition to his commercial experience Nick has also worked in government, spending a year as managing director of Manufacturing Insight, a programme aimed at changing the image of manufacturing among young people. He holds several non-executive directorships and is a founder member of the IET’s Manufacturing Policy Panel. n.hussey@hennikgroup.com

David Farrow General Manager David joined Hennik Research in 2012 managing the marketing across the business. He has nearly 25 years’ experience in the conference and publishing industry having worked for the likes of LexisNexis, Kaplan Hawksmere and Payroll World. In February 2014 he was appointed General Manager of Hennik Research. d.farrow@hennikgroup.com

Henry Anson Sales Director Henry is responsible for Hennik Research’s commercial activities, developing new concepts and products for ’s readership. Henry is keen to build a bridge between the manufacturing community and the service sector which supports it. h.anson@hennikgroup.com

Callum Bentley Editor Callum joined Hennik Research in 2013 as editor of ’s sister publication, the Lean Management Journal, before taking over as Editor of in June. He has a background in news for web and print, working for major regional news organisations in Australia. Callum has a passion for the automotive and aerospace sectors. c.bentley@hennikgroup.com

Victoria Fitzgerald Features Editor Victoria joined Hennik Research in January 2014 as editor of the Lean Management Journal after spending three years in New York City as a news journalist for an international online news organisation. She recently moved to as features editor where her focus has moved to industrial policy and initiatives driving the future of UK manufacturing. As a former teacher, Victoria has a passion for apprenticeships and education. v.fitzgerald@hennikgroup.com

4

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IT Editor Malcolm Wheatley

malcolm@malcolmwheatley.co.uk

Contributing Editor Ruari McCallion

r.j.mccallion@btinternet.com

Reporter Andrew Putwain

a.putwain@hennikgroup.com

Design

Art Director Martin Mitchell

martin@opticjuice.co.uk

Jonny Williamson Web Editor Jonny joined having spent the past three years working as a print and online features journalist for global media outlets covering manufacturing, commercial aerospace and business leadership.

Jonny is responsible for boosting and updating ’s online presence with a strong focus on community engagement. j.williamson@hennikgroup.com

Designers Alex Cole

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Sales and Events

Operations Manager Grace Gilling

g.gilling@hennikgroup.com

Project Director Matt Chilton

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Sales Manager Sarah Hough

s.hough@hennikgroup.com

Barbara Fitzsimons Production Editor Barbara joined in July 2014 after working in production and content management for over eight years in London and Scotland on industry and scholarly publications. Barbara produces and contributes to print and online content and has an interest in food & drink manufacturing and automation. b.fitzsimons@hennikgroup.com

Eva Lindsay Event Production Manager Eva joined in 2012 having worked in the events industry for four years across a number of sectors, with her primary focus on defence. Drawing on her broad experience, Eva will be heading up the event content team and helping to grow and develop the event programme, with special focus on the company’s popular Factory Tours. e.lindsay@hennikgroup.com

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February 2015

CONTENTS

08 News and regular columns

Workforce & Skills

A summary of manufacturing news and events with commentary on industrial research and policy 22 Out & About visits Burton’s Biscuit Company and catches up with complex fabrication manufacturers, NIS Ltd 24 Best of Online What you wanted to read most about ’s January website 26 Hot Topic: Once more into the breach examines all the reasons to smile about UK manufacturing in 2015 30 Special Feature: Manufacturing a shift in perception Jonny Williamson uncovers the success stories driving the North East’s industrial revival 32 Sector Focus: Hit or myth?

Ruari McCallion ventures into the cities to see if the historic urban manufacturing areas are undergoing a renaissance 34 Sector Focus: The money thing Any revolution needs money and support Ruari McCallion’s asks just how much 38 Interview: Hungry for more Peter Digby, Managing Director of Xtrac, the Manufacturer of the Year 2014 42 60 second interview: Simon Middleton Founder, The Great British Banjo Company

52 Snapshots: The Royal College of Art and Dassault Systèmes get creative, Vince Cable announces the launch of the National College of Advanced Manufacturing. And FMB Oxford takes on the two millionth apprentice 54 Employee of the Month: Stuart Berry, New Tooling Introduction Team Leader at C Brandauer & Co Ltd 56 Schooling business: Dr Gordon Mizner, Chief Executive of the Engineering Development Trust argues that employer/education linking programmes provide a massive for businesses Other topics in this section: covers the record breaking apprentice intake for BAE Systems

Pillar features Manufacturing Leadership

IT in Manufacturing

44 Learn to lean: Lean Management Journal’s Editor Andrew Putwain highlights some of the articles from the latest edition of the LMJ which focuses on the beginnings of lean’s adoption of sustainable and greenfriendly policies 47 EEF Conference: With little over a month to go before EEF’s flagship national manufacturing conference, time is running out to book a place Other topics in the section: Mark Stephens, Deputy CEO and Group Commercial Director of Aldermore, comments on the manufacturing industry being set to achieve its strongest rate of growth in 2014 since 2010

Energy 48 How green is green? Victoria Fitzgerald updates on the EU2030 50 A cutting-edge relationship: E.ON talks about how the right relationship can go a long way

6 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Finance & Professional Services 60 Driving success: David Atkinson, Head of SME manufacturing at Lloyds Bank Commercial Banking discusses the UK’s automotive sector’s success and its future challenges 62 Blasting offshore wind: 2014 saw a number of major investments into the UK offshore wind sector. GROW:OffshoreWind has spent the last 12 months helping the supply chain take advantage

Manufacturing Technologies 64 Engineering the next generation of prosthetic limbs: Jonny Williamson discusses lower limb prosthetics with Royal Academy of Engineering research fellow, Dr Alex Dickinson 66 Smart world: scratches the surface of the Internet of Things 76 Mind the gap: For small scale manufacturing, ERP isn’t appropriate – so what is?

78 Have tablet, will travel: Going mobile has never been easier but pitfalls await the unwary, Microsoft discusses Other topics in this section: snapshots how the Internet of Things enables technology business, K3 Academy, and six steps to manufacturing efficiency 80 Talk of the Industry: The countdown to a politically electrifying election has begun. Terry Scuoler takes a look at the future economic management of our nation

NEWS

www.themanufacturer.com/news

Special Focus Automotive Sector 1,528,158 cars were manufactured in the UK in 2014:

The UK’s automotive manufacturers had a record 2014, producing more than 1.5 million vehicles for the year – the highest number since 2007 - annual figures show.

T

he Society of Motor Manufacturers and Traders (SMMT) reported that 1,528,158 cars were manufactured in the UK in 2014, equating to a car rolling off the production line every 20 seconds.

According to SMMT chief executive, Mike Hawes, the 1.2% growth in UK car manufacturing represents a “very successful year”, with the industry having overcome challenges such as a slower than expected recovery in Europe and weakness in several global markets.

Noting that car export values doubled in the decade from 2005 to 2014, Hawes added that UK manufacturing is now more diverse than ever, with a “unique combination of volume, premium and specialist brands” giving the nation’s products “truly global appeal.”

Bentley strengthened its position as one of the

world’s most sought after luxury car manufacturers with more than 11,000 vehicles delivered in 2014, a nine percent growth on 2013’s 10,120.

Key regions included the Americas, China, Europe (including the UK) and the Middle East, with the Americas retaining its position as Bentley’s number one market, while China closed the gap as the second largest customer region.

Bentley cited the growing appeal of the brand, with the launch of new models such as the Continental GT V8 S, GT Speed Coupé and convertible, and Flying Spur V8 all helping to drive success.

Rolls-Royce Motor Cars notched up record sales for a fifth consecutive year, with 4,063 cars sold globally during 2014 thanks to double-digit growth across most regions.

According to the company, Rolls-Royce sold more cars in the €200,000+ net segment than any other manufacturer. It said that 2014 also marked the first year in which every Phantom, and the great majority of Ghost and Wraith models, left the home of Rolls-Royce at Goodwood in West Sussex with significant bespoke personalisation.

Not to be outdone, McLaren Automotive revealed that it also ended 2014 with record sales, as it has done every year since starting production of luxury supercars in 2010.

TECHNOLOGY

3D printing and additive manufacturing company Stratasys is paving the way in producing technology that has the ability to dramatically reduce manufacturing lead times. It’s been announced that consumer goods business, Unilever has cut lead times for prototype parts by 40% since introducing Stratasys’ PolyJet 3D printing technology into its manufacturing process. Typically producing runs of around 50 units for a wide variety of prototype parts, Unilever is now able to produce prototype parts in their final material for functional and consumer tests at a significantly faster rate than traditional tooling methods.

8 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

500,238 Nissan Sunderland

449,507 JLR’s plants in Castle Bromwich, Halewood and Solihull

172,215 Toyota Burnaston, Derby

77,836 Vauxhall, Ellesmere Port 121,799 Honda, Swindon

178, 993 MINI Plant Oxford

McLaren delivered a total of 1,648 vehicles to customers around the world, an increase of 21% over 2013 - which was the company’s first year of profitability. In addition, another 14 new retail locations were created, bringing McLaren’s total global sales network to 68 sites.

Following the international reveal and simultaneous launch of the 650S in Coupé and Spider-form at the Geneva Motor Show, strong demand for McLaren’s core model range saw sales reach 1,400 including some examples of the outgoing 12C.

CONTRACT WINS

Rolls-Royce has won a contract to deliver engines for Chinese locomotive manufacturer CNR Dalian.

Estimated to be worth in the region of £70m, the order marks Rolls-Royce’s first entry into the Chinese export market for freight locomotives. The manufacturer will supply 232 of its MTU Series 400 engines, which are set to be used to upgrade South Africa’s Transnet Freight Rail with new locomotives.

MANUFACTURING NEWS

FUNDING & FINANCE

Fit For Nuclear (F4N) has unveiled a £1.5m support boost to help English manufacturers enter or expand their presence in the growing nuclear sector. Developed by the Nuclear Advanced Manufacturing Research Centre (Nuclear AMRC) and delivered in partnership with the Manufacturing Advisory Service (MAS), F4N is offering grants of up to £10,000 to companies that want to meet industry standards and compete for work in civil nuclear. The funding call aims to allow management teams to drive business improvements in areas, such as improved manufacturing processes, factory layout, bid writing, training plans and strategy, and support R&D projects to optimise production or develop new processes/products.

The Government’s Start Up loan scheme has hit another milestone as the 25,000th business loan has been approved, taking the total amount lent to new firms to nearly £130m. Bedfords’ Nicola Weeks was the landmark recipient, the latest female entrepreneur to start a business through the scheme. According to Prime Minister David Cameron, small businesses are the “lifeblood of our economy,” with creating jobs and opportunities a “key part” of his longterm economic plan. Since launching in 2012, the financial support and mentoring initiative has reportedly helped generate upwards of 32,000 jobs.

APPRENTICESHIPS

The Glass Academy, British Glass’ training and skills development initiative, and The Sheffield College have signed a five-year agreement has been signed to promote and stimulate interesting in engineering and manufacturing in the Sheffield City Region. Focusing on extending and embedding a range of strategies that will promote the glass industry and STEM careers as stimulating and rewarding pathways, the agreement also aims to help sectors to better meet their future skills needs. The two bodies have enjoyed a successful partnership over the past two years, establishing a variety of meaningful work experience placements, interview practice sessions and industry careers advice.

The F-PACE is an all-new performance crossover set to join Jaguar’s lineup in 2016.

APPRENTICESHIPS

Jaguar Land Rover has announced plans to create 1,300 new jobs as it looks to accelerate its industry position in aluminium and lightweight technologies. The news comes following confirmation that the UK’s largest manufacturing investor will add another new Jaguar model to its product portfolio, the Jaguar F-PACE, set to go on sale in 2016. This latest announcement will see Jaguar Land Rover’s Solihull manufacturing plant continue to develop its capability in aluminium vehicle construction for which the company is synonymous. It also marks the start of an incredible year for the British manufacturer, which says it will deliver 12 significant product actions in the next 12 months alone.

CONTRACT WINS

The US Navy has awarded BAE Systems a five-year contract to provide critical system engineering, integration, and testing expertise for the Aegis Combat System (ACS) on board surface ships. The initial award is valued at more than £15m, with the total value of the fiveyear contract estimated to be £80m.

The US Navy’s most advanced and complex weapon system, ACS uses computers and radars to track and guide weapons to destroy enemy targets. Under the Aegis Technical Representative Engineering Support Services contract, BAE’s experts will provide system development, integration, engineering, and maintenance support to ensure the readiness of the system. In addition to providing critical support for the ACS itself, BAE is also an industry leader in modernising the Navy’s fleet of Cruisers and Destroyers equipped with ACS and provides support and technology for the land-based portion of the programme, Aegis Ashore.

Precision manufacturer, Brandauer is celebrating after revealing a major reshoring win that will see 25 million components shipped across the world annually. The presswork and stamping specialist fought off competition from a number of international rivals to secure the toolingup and volume production of a cable conduit retention ring for the telecoms sector. Support from the Manufacturing Advisory Service’s ReshoreUK service enabled the company to compete on the part price, while improving raw material utilisation throughout the production process. The deal – worth £2m over the next 10 years – involves Brandauer supplying countries including China, India, UAE, Mexico and the US.

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 9

NEWS www.themanufacturer.com/news

MANUFACTURING NEWS

The Deputy PM also confirmed other Regional Growth Fund awards, including a £1m grant for Dana UK Axle to increase capacity and install cuttingedge technology, creating 400 jobs in high-tech manufacturing.

FUNDING & FINANCE

Deputy Prime Minister, Nick Clegg has signed an historic Growth Deal, bringing more £357m of investment to Greater Birmingham and Solihull to support economic growth. The Growth Deal aims to help deliver at least 13,000 jobs, allow up to 4,000 homes to be built and up-skill 7,633 people by 2021, as well as generating upwards of £80m in public and private investment.

In addition, the Regional Growth Fund is providing £1.8 m towards a £17m investment which has enabled HydraForce UK to build a new, bespoke 120,000 sqft factory in Birmingham, to be completed by mid-2015.

Johnson & Johnson has announced it is to form a consortia with leading global research institutions and non-government organisations to work in conjunction with Janssen Pharmaceutical Companies to accelerate the development of its Ebola vaccine. The Innovative Medicines Initiative (IMI) plans to award these consortia grants totalling more than €100m from the Ebola+ programme to support the development, manufacturing and patient education for the vaccine regimen. Funding for the IMI Ebola+ programme comes from Horizon 2020, the European Union’s research and innovation programme, and in-kind contributions from the European Federation of Pharmaceutical Industries and Association’s (EFPIA) partners in the project.

On January 6, Johnson & Johnson announced the start of a Phase I, first-in-human clinical trial of a preventive Ebola vaccine in development at its Janssen Pharmaceutical Companies.

10 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

APPRENTICESHIPS

BMW is looking to recruit 47 new apprentices at its UK Mini plant near Oxford and a further 150 young people across the UK to work at its BMW and MINI retailers.

Mini Plant Oxford has 30 places available in areas ranging from finance and logistics to engineering and IT. Technical apprentices will attend Plant Oxford’s bespoke training school, featuring state-of-the-art classrooms, dedicated computer study areas and a fully-equipped workshop. There are also five apprenticeships available at the Swindon pressings plant and a further 12 at the Hams Hall engine plant near Birmingham. The apprenticeships will last between three and four years and cover a wide range of skills such as human resources, business, electrical maintenance and engineering.

TECHNOLOGY

Honda has announced the world’s first predictive cruise control system capable of anticipating and responding automatically to other vehicle behaviour. Its Intelligent Adaptive Cruise Control (i-ACC) utilises a camera and a radar to sense the position of other cars on the road, and uses an algorithm to calculate the possibility of neighbouring vehicles cutting in up to five seconds before happening. In the event of a potential lane intruder, i-ACC employs the brake gently and lights an icon on the driver display, signalling to the driver why the deceleration has occurred. I-ACC is set to make its debut this year on Honda’s new European CR-V.

COMPANY INVESTMENT

Energy Secretary Ed Davey has helped break ground at Siemens’ offshore blade manufacturing plant in Hull’s Alexandra Dock. The construction of the blade and wind turbine assembly facilities is due to begin in the summer, with production of the first blades scheduled for winter 2016. Siemens committed to building the £310m SWT-6.0-154 blade manufacturing plant in East Yorkshire last March, and expects to employ 1,000 people at the site, up to 550 people in the manufacturing facilities and a further 450 employed in the logistics and servicing centre.

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February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 11

NEWS www.themanufacturer.com/news

Image Left to Right: Ian Whateley, Stuart Weston, Chris Bal and Alan Rollason (all Advanced Chemical Etching).

COMPANY INVESTMENT

Advanced Chemical Etching Ltd. (ACE) is celebrating its 15th birthday in style after putting the finishing touches to a £1m investment that it hopes will propel the company sales towards £5m. The Shropshire-based firm has just completed a major expansion plan to more than double its Telford factory to over 20,000 sqft. The installation of two new large etching machine lines – plus advanced measuring equipment – will help ACE build on an influx of new orders for parts used in aerospace, automotive, electronics, Formula 1, medical, heat exchange and fuel cell technology.

Skills The Prince of Wales is committed to numerous youth initiatives, including the Industrial Cadets programme and the Step Up To Serve campaign.

APPRENTICESHIPS

His Royal Highness the Prince of Wales toured Nissan’s Sunderland plant last month, a visit which highlighted the factory’s role in electric vehicle manufacturing, as well as its youth training. Widely known for his active support of sustainability, including reductions in carbon emissions, the Prince toured the all-electric Nissan LEAF production line and unveiled a plaque commemorating his visit and the work of the Nissan Skills Foundation. In addition, he toured the Global Training Centre, where employees and apprentices receive training, and where local school children experience hands-on activities.

COMPANY ANNOUNCEMENTS

Resource, the UK’s major event for the circular economy, is launching a dedicated Remanufacturing Hub for 2015 to aid UK manufacturers keen to adopt this highly profitable, resource-efficient method of manufacturing.

Estimated to be worth £5.6bn to Britain’s economy if the model can be cracked, remanufacturing has been labeled as the unsung hero of the UK’s move towards a resource efficient, circular economy. Simply put, remanufacturing is the process of disassembling products, cleaning, repairing or replacing parts, then reassembling to sound working condition. According to EEF, the subsets of UK manufacturers already adopting this process are achieving net material cost savings of up to 85%.

12 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Stoke-on-Trent College has officially opened new engineering and manufacturing facilities worth more than £600,000 at its Burselm campus. The investment, from Stoke-on-Trent and Staffordshire LEP’s ‘City Deal’, is set to benefit 420 full-time students including 13 Bentley Motors apprentices. The new amenities include: A specialist vehicle painting workshop for body repair and painting techniques A body jig and motor vehicle rigs to teach contemporary skills in accident and maintenance repair A welding robot and lathes for practicing high-precision welding A specialist Christiani Training System with a laboratory, solar suitcase and energy bikes to provide real world simulations, demonstrations and experiments of solar thermal and heat pump technologies Paul Johnson, the college’s assistant director of engineering and motor vehicles, said: “We are extremely pleased and proud of our new facilities and we are thrilled to be able to offer this level of training to our students and apprentices,” he said. “I am also very glad for Bentley’s involvement and the fact they are prepared to send their apprentices to us for their qualifications.”

MANUFACTURING NEWS

Exports

Scotland exported a record £27.9bn worth of goods and services across the globe in 2013, according to figures from the Global Connections Survey.

This is a 7.2% increase from 2012, with the largest sectors being food and drink, and refined petroleum jelly. According to the data, £16bn of the total figure were attributable to manufacturing companies. With an approximation £3.9bn worth of goods, the US remained the biggest single market for Scottish exports, followed by Holland with £2bn, Germany with £1.9bn and France with £1.8bn. Exports to the rest of the UK increased by £1.2bn to £46.2bn. Lindsay Whitelaw, director, URICA Limited, said: “It is great to see exports showing continued growth with strong performances in particular from chemicals and Food & Drink industries sectors. “Export performance is an indicator for the health of an economy, and in particular the manufacturing sector. A high level of exports indicates that an economy is productive, making products that are not readily available in local markets and at a price customers are willing to pay for.”

GOVERNMENT

A cross-party group of parliamentarians have launched a new manifesto ahead of the upcoming general election, calling on any future government to take what it calls “the necessary steps” to ensure the UK becomes a global leader in manufacturing markets.

Entitled Manufacturing Manifesto 2015, the document addresses what the group regards as the key issues and themes currently affecting UK manufacturing and threatening the nation’s potential industrial growth. The manifesto has been authored and signed by six leading parliamentary members of the All-Party Parliamentary Manufacturing Group: Barry Sheerman MP; Chris White MP; Gordon Birtwistle MP; Caroline Dinenage MP; John Stevenson MP and Baroness Wall of New Barnet.

Dates for your diary February

25-26

The Future Powertrain Conference (FPC2015) is a two day event at the National Motorcycle Museum in Solihull to bring together industry and academic experts within the powertrain development field. It will open up presentations and discussions on the solutions to the challenges faced by the engineering industry in the UK and internationally over the next ten years. http://futurepowertrains.co.uk/2015/

26

EEF Flagship National Conference: Make it Britain - manufacturing a renaissance. As the 2015 General Election approaches, EEF’s flagship National Conference brings together the ‘who’s who’ of manufacturing, politics and media at the UK’s premier manufacturing event of the year. Critical to sustaining current economic growth and improving UK productivity is the need to invest, innovate and have access to a wide talent pool. www.manufacturingconference.co.uk/default.aspx

MARCH

10-11

Best Factory Conference 2015 - Alton Towers Resort & JCB World Headquarters The winning manufacturers in the 2014 BFAs all showed how a dedicated approach to Continuous Improvement and innovation can achieve amazing results.

They succeeded by listening to their customers, working more closely with their suppliers, innovating their products and processes, and harnessing the potential of their people. The Best Factory Conference has been created to share the knowledge, skills and experience of these winning companies and help you on your journey to excellence. www.bestfactoryconference.co.uk/

17

The Fall and Rise of Manufacturing Held in Guildford, Philip Spiers joint with RAeS Farnborough.speaks on The Fall and Rise of Manufacturing and the work of the Sheffield University Advanced Manufacturing Research Centre. http://nearyou.imeche.org/eventdetail/index/9492

18

Challenges of manufacturing complex gas turbine components AETC are specialists in precision casting techniques and the speaker will outline the history of these developments and explain the modern technologies used in their processes that are designed to overcome the various manufacturing problems associated with the precision casting process. Their development of the ‘Single Crystal’ casting process will be explained. http://nearyou.imeche.org/eventdetail/index/9406

23-24

Third International Conference on Advances in Engineering Sciences and Applied Mathematics (ICAESAM’2015) The International Refereed Conference Proceedings will be blind peer reviewed by two competent reviewers. The post conference proceedings will be submitted to be indexed in the Thomson Reuters, CiteSeerX, and Google Scholar for possible Indexing www.iieng.org/2015/03/24/60

APRIL

8-10

ACME-UK 2015 will be the ideal forum for the fostering of ideas and the establishing of new collaborative research links, which will help to build strong research networks within UK and at an international level. The conference will also give you the unique opportunity to visit Swansea, one of the most vibrant cities in Wales and, crucially, to get to know the place where the history of the finite element method began more than 50 years ago. www.astutewales.com/cy/news_and_events.htm?id=105

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 13

FOR THE DIARY

Upcoming Events To see a full events listing please visit: themanufacturer.com/events Connect with our events team on twitter: @TM_EventsTeam

The Manufacturer of the Year Awards 2015: Launch 4 March 2015, House of Commons, London Sponsored by Margot James MP, this event marks the official launch of The Manufacturer of the Year Awards 2015.

Set to not only reflect on the success of the 2014 winners, the launch will also provide an opportunity for both celebration and recognition of the UK manufacturing industry, and outline the aim and purpose of the awards programme in the year ahead.

FF Series: Lean 18 March 2015, Aston Conference Centre, Birmingham Free for ManufacturerS* The Lean Manufacturing conference is aimed specifically at optimising and overcoming challenges within your current lean programme. It will address engagement issues across all levels, how lean can help during times of business difficulties and overall employee education to ensure best practice.

Themanufacturer.com/lean2015 #TMLean

themanufacturer.com/awards2015 #TMAwards

Supply Chain Connect Conference

FF Series: 3D Printing and Additive Manufacturing 18 April 2015, Manchester Advanced technology is helping manufacturers create everything from medical implants to automotive parts. This year’s conference will provide delegates with much needed insight into the world of advanced technology, and how to innovate, develop and enable crucial business growth. By understanding the benefits, manufacturers can expand their market and move towards the future. themanufacturer.com/3DAdditive #TM3D

FF Series: Energy Management

ERP Connect

19 March 2015, Birmingham

14 May 2015, Reading

Free for ManufacturerS*

The only event specifically designed to bring local and UK suppliers together in face to face meetings with OEMs. Spend two days at one event and put your time to good use making the right connections for your business.

Businesses are coming under increased pressure to tackle rising energy prices, comply with government regulation, and remain competitive in the global economy. Increasing efficiency and reducing energy costs is becoming a key strategic objective. Bringing industry experts together will help share best practices, solutions and strategies to achieve successful energy management across the manufacturing sector.

Exclusively for companies looking to implement or replace their ERP system.

ERP Connect has changed the way UK manufacturers approach software selection by minimising the overall time and effort involved in qualifying potential enterprise software vendors.

This unique event offers a one-of-akind opportunity for you and your team to see the premier enterprise software solutions in the world, in one place and at the same time!

supplychainconnect.co.uk #TMSupplyChain #supplychain

themanufacturer.com/energy2015 #Energy

Erpconnect.co.uk #ERPConnect

11 – 12 March 2015, No 1 Mann Island, Liverpool

*Free for a limited number of attendees from manufacturing companies. Passes are allocated on a first come, first served basis. Subscribers to The Manufacturer are guaranteed a place. Once all of the free places have been allocated, there will be a cost of £395 +VAT per delegate from manufacturing companies. £995 +VAT per delegate - standard booking fee for delegates from consultancies/solution providers. T&Cs apply.

14 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

APPOINTMENTS

Sir Peter Luff

NDI

Sir Peter Luff, MP for Mid-Worcestershire and former Minister for Defence Equipment, Support and Technology, is to become a Patron of NDI, the trade body representing companies involved in the defence sector.

The move comes just weeks after NDI’s ownership was taken over by EEF, the manufacturers’ organisation, allowing NDI members to benefit from being part of the largest and most influential force backing UK manufacturing and engineering.

Sir Peter Luff’s ongoing involvement and now patronage will further boost the support and expertise that NDI is able to provide member companies, most of which are SMEs, to help them to develop and grow their businesses across the defence, security, aerospace and space sectors, both nationally and internationally.

Terry Scuoler, Chief Executive of EEF, says: “I am delighted that Sir Peter has accepted the role of being a patron of NDI.

David Latimer

Magnomatics

Magnomatics, the developer of magnetic transmissions and ultra-compact motors has appointed Dave Latimer as managing director. Latimer’s appointment comes following the departure of Chris Kirby, who was managing director for over nine years. Latimer joined with a focus on developing the market for the company’s MAGSPLIT product. MAGSPLIT offers significant efficiency and noise reduction benefits for hybrid vehicle powertrains and Magnomatics is currently in engaged with a number of interested vehicle manufacturers.

Brendan Murphy

Prior to Magnomatics Latimer was CEO of EVO Electric an electrical machines spin out company from Imperial College.

Mike Lloyd, chairman of Magnomatics commented “Over the last nine years Magnomatics has grown from University ideas and concepts to a high technology company employing over 30 highly qualified engineers with sufficient funding to bring several products to market. I am delighted that David has accepted the role of chief executive and he will lead the company in the next phase of our growth.”

Taylor

Building materials industry expert, Brendan Murphy, has joined Worcestershire container and recycling solutions manufacturer, Taylor, as CEO in a move that is expected to further accelerate the company’s growth plans within the UK and overseas. In a career spanning over two decades, Murphy has spent more than 10 years with prominent Dutch plastic pipe manufacturer, Wavin, where he was responsible for the strategic commercial development of the £200m turnover UK & Ireland region. Murphy has spent the past two years as Group Sales Director for the

Pete Dunn

NDI has an excellent reputation for supply chain solutions and now as part of EEF is ideally positioned to provide the business support and intelligence needed to unlock opportunity for British manufacturers. Sir Peter brings energy, interest and experience to the table and will be instrumental in making sure UK engineering benefits from NDI’s knowledge and expertise.”

Mike Maiden, Chairman of NDI’s Advisory Board, says: “We are delighted and honoured that Sir Peter has agreed to become a Patron. He is already a member of NDI’s Advisory Board and, in that capacity, we have benefited enormously from his knowledge and experience – including as a former Defence Minister – as well as his enthusiasm for the engineering sector and the part which SMEs play within it. “I look forward to working closely with Sir Peter and our other Patron, Lord Willy Bach to support the business aspirations of our member companies.”

market leading ventilation supplier, Volution Group PLC, where he oversaw the company’s expansion throughout the UK and Ireland.

Continued international expansion and new product development will be Brendan’s key priorities on joining the business.

Commenting on the appointment, Richard Sanders, director of London environmental investors Sullivan Street Partners, said: “We’re delighted to welcome Brendan to the business, pleased that Taylor’s senior team is now complete and excited about the opportunities that lie ahead.”

Flexi Narrow Aisle

Flexi Narrow Aisle – the manufacturer of Flexi space saving materials handling solutions has seen significant growth in its key articulated warehouse truck market in the UK. To keep pace with the growing demand they have appointed Pete Dunn as business development manager based in the Midlands.

Dunn has extensive experience in product management in the materials handling industry, the forklift truck industry and specialist knowledge of the very narrow aisle systems sector in which Flexi’s innovative range of space saving and productivity

16 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

enhancing products are developed. John Maguire, Flexi Narrow Aisle’s sales and marketing director, commented: “The market for articulated truck technology continues to grow – not just globally but also in the UK - and I am sure that Peter will enjoy considerable success with us and help us keep pace with the high demand for Flexi truck technology. We have many new innovative Flexi products in development which Peter will help us bring to market over the next few years.”

To notify The Manufacturer of your company’s appointments, please contact Barbara Fitzsimons at: b.fitzsimons@hennikgroup.com or: 0207 401 6033

Make it Britain manufacturing a renaissance N A T I O N A L

C O N F E R E N C E

2 0 1 5

26 February 2015, QEII Conference Centre, London

JOIN THE DEBATE ON THE GREAT BRITISH MANUFACTURING REVIVAL As the General Election approaches our conference will bring together the who’s who of manufacturing, politics and the media. This is your chance to: – challenge the policy makers – influence the business agenda

DICK ELSY, High Value Manufacturing Catapult

RT HON MATTHEW HANCOCK, MP

STEPH MCGOVERN Broadcaster

NICOLA SALTER Williams F1

RICHARD KIRK PolyPhotonix

SOPHIE THOMAS RSA

TONY WALKER Toyota UK

MARTIN WOLF CBE Financial Times

– hear from inspirational speeches and network with hundreds of business leaders.

As always, there will be keynote speeches from policy ministers - we will be announcing these closer to the event.

Hurry! Last year’s conference sold out early, book your tickets at www.manufacturingconference.co.uk Headline sponsor:

In association with:

Sponsors:

Legally minded & DIGITALLY MADE

LEGALLY minded.

In advanced manufacturing, the ability to gain maximum value from your know-how can result in considerable competitive advantage. Robert Bryan, partner at BPE Solicitors LLP discusses.

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o do so requires the effective implementation of a legal, as well as technical, strategy.

First, identify the status of your know-how. Is it a trade secret? Does it constitute highly confidential information?

Or is it information that, whilst valued by your organisation, is in the public domain?

Classification of that information helps to determine how it should be protected.

If it is a trade secret, how long is it likely to remain the case? Advanced manufacturing is an area of constant rapid change. So, unless the trade secret represents a sustainable step change, do not consider incurring the expense of a patent application. Remember too, that once published, although the patent subject is protected, it is in the public domain. Designing around that patent thus becomes a real potential concern.

Instead, consider entering into tightly drafted, highly specific non-disclosure or confidentiality agreements. Not only are they easier, quicker and cheaper to enforce, because both parties recognise the agreement’s purpose is to keep your secrets secret, it usually has the necessary deterrent effect too.

Remember, when disclosing information, for it to gain legal protection it must have the ‘necessary quality of confidence’ and be disclosed in circumstances that impose a degree of confidence. Your ability to act to protect this information is ultimately based on conscience. Be aware too that a person who assists a recipient of confidential information in its misuse has a potential secondary liability, if knowledge of that misuse can be proven.

Merely describing information as ‘confidential’ is not sufficient to make it so. Information already in the public domain, to be deemed confidential, requires some demonstrable act of the human brain to be applied to it.

For guidance on how to keep your secrets secret e-mail rob.bryan@bpe.co.uk

18 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Digitally Made.

T

Why social media and a customer centric strategy is critical for manufacturers in 2015.

Hayden Richards explains.

he rapid advancement of technology and the positive benefits of how it can streamline businesses, should be present in your strategy.

I think in this new competitive landscape, the winners will be those can master every changing customer expectations and are flexible to implement new technologies.

Just because you may have recently started to get to grips with social media, the new reality that is social media 1.0 is rapidly becoming extinct.

Altimeter’s Principal Analyst Brian Solis takes this idea a step further: “Social media becomes part of a digitally transformed ecosystem. Real-time and content marketing becomes more sophisticated and portable. Social becomes key hub for shaping customer experiences.”

Here is a trending acronym only your IT staff may be privy to: SMAC. It stands for social, mobile, analytics and cloud, and is partly responsible for manufacturing current reinvention which means profitable expansion, personalised customer engagement and tighter workforce connectivity across various platforms. No wonder Google is eyeing the sector. SMAC technology in 2015 will allow smaller players to penetrate high margin opportunities. On offer are lower operating costs and a global outlook.

Here is the best bit, the sector has been consumerised to the point that the old model of B2B is now defined as B2B2C (business-to-business-toconsumer). Customer Care matters now more than ever and social is indispensable. In fact according to IDC’s Future of Manufacturing report: “By 2020, 40% of Global 2000 companies will use new social media platforms to redefine their marketing and customer services.”

The fact is ever evolving social media technologies are prodding manufacturers to become customercentric, opening the door for world beating business models and products. Even your indispensable ERP system will evolve socially. IDC whitepaper predicts: “It will be easier for the right information to reach the most appropriate user. Social business capabilities will create a collaborative ‘social ERP’ environment that will foster the creation of self-forming teams.”

All these changes might be appear daunting but at its core it’s all about people and interacting in a familiar but different manner.

SUPPORTING UK BUSINESS

PROSPER HELPING YOU

IN THE MANUFACTURING SECTOR

Lloyds Bank is dedicated to supporting UK manufacturers.

With specially trained relationship managers for the manufacturing sector, an extensive range of products, and a proven commitment to lending, we’re here to help.

To find out how we are supporting manufacturing businesses here in the UK, contact Dave Atkinson, Head of Manufacturing on 07764 625666. www.lloydsbank.com/manufacturing

Any property given as security which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it.

All lending is subject to a satisfactory credit assessment. Lloyds Bank plc. Licensed under the Consumer Credit Act 1974 under licence number 0004685. We subscribe to The Lending Code; copies of the Code can be obtained from www.lendingstandardsboard.org.uk M60259_299 (11/14)

Letters to the editor

Production lines

Letters to the Editor Max Bass Director of James Briggs Ltd

Ever since we started back on a positive economic trajectory in 2013, the manufacturing sector – along with many others – has been right to tread cautiously.

As with all markets though, a stumble does not inevitably lead to a fall, and while output fell short of the increase expected between September and October, more positive news has flowed through in the interim period.

One set of figures worth considering are those in the CBI’s final quarterly survey of the year, which found that October’s drop came in a window where UK order books hit a four-month high and a positive balance of five percent.

A positive outlook is further encouraged when you take into account Markit’s latest Purchasing Managers’ Index (PMI), which rose from 53.2 to 53.5 against predictions that it would slip to 53.0.

Domestic demand remains resilient to the persistent malaise in the export market, which is hampering growth.

Eurozone demand clearly remains low, and that will continue to have an impact on UK figures into 2015.

However, the ONS was keen to point out that its stats showed no sign that export levels for November were weaker than normal.

A positive outlook is further encouraged when you take into account Markit’s latest Purchasing Managers’ Index For the time being, UK manufacturing won’t be able to rely on the export market to boost its coffers, so much will continue to depend on domestic demand. Policy makers are already reflecting this, with the Bank of England signalling that it will keep interest rates at 0.5% – a figure we expect to remain in place well into 2015.

The current low price of oil will go some way to easing the reliance on domestic consumers, meaning that trouble in the EU shouldn’t be enough to put off British optimism. While market drops remain anomalous, it should be a happy and prosperous New Year.

20 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Steve Winder Regional Vice President, UK and Ireland at Epicor

As I look back to 2014, I’m resolute in taking even more inspiration from those around me.

I say this as I had the pleasure of attending The Manufacturer Directors’ Conference. Shared experiences and a myriad of talking points came to the fore, but the following captures some of the main highlights that have inspired me for the year ahead.

Manufacturers and engineers are faced with daily challenges particularly in a highly pressured, time sensitive environment, in a time of economic downturn. If anything is learnt from projects such as Rosetta’s comet landing and the Bloodhound SSC project’s mission to make the 1000mph World Land Speed Record attempt, it’s that the mantras of time is of the essence; and no risk, no reward ring true.

Part of the discussion also brought us to debate how UK manufacturing can sometimes be too short-term.

Manufacturers and engineers are faced with daily challenges particularly in a highly pressured, time sensitive environment, in a time of economic downturn Keeping an eye on the mid and longer-term goals, whilst balancing the needs of the quarterly focus was deemed important as a measure of any project.

As an industry, we need to realise that it takes all sorts of skills and disciplines to make a successful manufacturing enterprise. Showcasing this to youngsters does, however, require explanation. Teamwork can deliver great things and whilst some people will only see an end product, UK manufacturing has been seen as offering an enriching environment for all.

Much was discussed about the need for more routes to industry from all disciplines and backgrounds, but that comes with a strong push of STEM. All agreed that starting this process for boys and girls at primary school age is paramount if we are to collectively succeed in inspiring a future generation that will drive our industry forward.

Headline sponsor:

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I n d u s t r y F o r u m

It’s great tribute to our 280 employees and the shareholders back at Xtrac and our operation in America as well. Very excited. It’s been a wonderful night

REGISTER YOUR INTEREST NOW

Managing Director, Xtrac Winner 2014

Keen to celebrate the success of your own manufacturing organisation in 2015?

Register your interest now for entry to The Manufacturer of the Year Awards 2015.

Email Laura Williams on l.williams@hennikgroup.com to receive notification once entries open.

www.themanufacturer.com/awards Co sponsor:

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’s editorial team is out and about at a wide variety of industry conferences, debates and factory tours month in, month out.

Let’s get a snapshot of the most interesting trips in January.

Burton’s proves it’s one smart cookie Jonny Williamson takes a bite out of Burton’s Biscuit Company’s latest innovation, the UK

The new production line includes modern dough line feed systems and wire cutting

Burton’s recent £5m investment supported increased capacity and a new production line at its Blackpool site

22 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Burton’s Maryland Soft Baked fresh off the packaging line

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he first thing that hits you upon entering Burton’s Biscuit Company’s Cookie Centre of Excellence in Blackpool is the mouth-wateringly rich aroma of fresh baked goods. I’ve made the trip north to have a look behind the scenes at the latest development in Burton’s supply chain investment programme, which has seen the company invest more than £40m in their operations since 2012.

Its most recent £5m investment has supported increased capacity at the facility and the introduction of the UK’s latest biscuit innovation, Maryland Soft Baked. The modern new production line includes dough line feed systems, wire cutting, steel-band travelling ovens, a water bath exit to the line and advanced control systems, helping to reinforce the site’s high standards of consistency and quality, and the long slow bake required.

Burton’s director of sweet, Toby Baker

said achieving a natural, home baked product sat at the heart of the process, with the newest sub-brand of Maryland Cookies the UK market’s first soft textured cookie of long shelf life, inspired by the traditional American-style cookie.

“Introducing new innovative products like Maryland Soft Baked, ensures that our Power Brands [along with Jammie Dodgers, Wagon Wheels, and Cadbury biscuits – manufactured under licence] remain consumer favourites and that we’re continuing to transform the UK biscuit aisle,” Baker said.

As the tour progressed, the site’s operations manager, Matthew Potts highlighted the various infrastructure and cosmetic advances which have also been implemented of late, such as relocating existing machinery, installing a replacement roof and upgrading the floor, lighting, painting and plastering.

Another substantial developments is the brand new packaging equipment line, incorporating wrapping machines, packing conveyors and tray de-nesters, an undertaking which drew on the experience and suggestions of team leaders and supervisors from the factory.

Launched at the beginning of 2015, Maryland Soft Baked are available in two 200g variants, Caramel & Choc Chunk and Double Choc Chunk, and join a range which includes Maryland Big & Chunky Cookies, Maryland Mini Cookies and Maryland Gooeys.

Burton’s Biscuit Company is a leading branded and own label supplier of biscuits and snacks, and is the UK’s number two branded player and second largest biscuit supplier. Headquarted in St Albans, the company operates manufacturing sites in Blackpool, Edinburgh and Llantarnam, and employs more than 2,000 people.

OUT AND ABOUT

Educating the educators Andrew Putwain attends the Education World Forum in London to learn how they’re planning to improve the education of the next generation.

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keynote from England’s Secretary of State for Education, Nicky Morgan, kicks off the event, highlighting the UK’s achievements but also of the challenges yet to be conqueredparticularly those in science, technology, engineering, and mathematics (STEM) subjects.

The Economist Intelligence Unit presented research on the state of adult education around the world and Andreas Schleicher, Organisation for Economic Co-operation and Development (OECD)

director for education and skills, presented an enlightening talk based on their OECD Education Policy Outlook 2015. The talk touched on who’s doing well and why, highlighting the fact that the UK lags behind in educational results and improvement, particularly in maths and science.

The report highlights England and Northern Ireland achieved belowaverage scores in literacy and numeracy, with younger adults (16-24 year olds) performing lower.

The reasons are complex but one discernible reason could be focusing on the wrong reforms. Too much emphasis is put on reducing class sizes - shown to have only limited benefits. More effective models, such as those in Singapore, could be to invest in teachers: more education and resources, increasing the prestige of the profession in society and new networking and sharing resources for teachers, so they themselves never stop learning. Especially from other teachers.

Our nuclear friends in the north Andrew Putwain heads to Lancashire to visit complex fabrication manufacturers, NIS Ltd.

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ounded in 1983, NIS Ltd has grown up to take over its Chorley base and is still expanding, with new buildings being added all the time. However, head of manufacturing Kevin Orme assures there’s plenty more space for the company to grow.

The firm, which employs just under 200 staff, is split almost 50/50 between manufacturing and engineering. Unlike many plants, NIS focuses on one-off bespoke designs to meet specific client needs. There’s no mass production line, instead each project - from parts for nuclear waste treatment plants, to portable industrial sized X-ray scanners - is undertaken after being carefully designed, modelled and planned by the engineering team.

Nuclear work makes up 70% of NIS’s business, including gloveboxes for handling radioactive goods and disposing waste, and highly sensitive defence work in support of the atomic weapons

programme.

With almost 40% growth in the last five years, the company seems to be in a robust state to wrestle contracts back from foreign companies, as the UK gears up to begin constructing nuclear power projects once again.

Director Gill Marsden highlighted the company’s growth as it prepares to go lean in aid of new government nuclear power contracts. The international vendors require increased efficiency and streamlined processes in the construction of nuclear facilities, so NIS is participating in a government funded Civil Nuclear Sharing in Growth programme headed up by project engineer Anthony Salisbury, on task to work with external partners to make over £1.2m in savings.

NIS is also well integrated into STEM projects and encourages the next generation relevant in the nuclear field which has been effectively put on hold

Gloveboxes for handling radioactive goods

for the past 15 years - meaning that almost no new blood has come into the industry. However working with colleges and further education organisations around the county mean that NIS now has a large and growing proportion of apprentices and graduates at the heart of its workforce.

If you would like to visit your factory or business, let us know and email the editor at c.bentley@hennikgroup.com February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 23

Best of http://www.themanufacturer.com

JLR pounces into 2015 In January, Jaguar Land Rover (JLR) announced plans to create 1,300 new jobs as it continues to accelerate its industry position in aluminium and lightweight technologies.

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he news comes following confirmation that the UK’s largest manufacturing investor will add another new Jaguar model to its product portfolio. The Jaguar performance crossover, set to go on sale in 2016, follows the Jaguar XE into the new facilities within the company’s Solihull plant.

This latest announcement, made at the Detroit auto show, will see Jaguar Land Rover’s Solihull manufacturing plant continue to develop its capability in aluminium vehicle construction for which the company is synonymous. It also marks the start of an incredible year for the British manufacturer, which says it will deliver 12 significant product actions in the next year alone.

JLR CEO Dr Ralf Speth said: “Today’s announcements once again demonstrates our commitment to the UK and the advancement of a high-tech, high skilled, manufacturing-led economy.

“Jaguar Land Rover is committed to delivering more great products. It is that innovation and relentless quest for new technologies that sets our products apart.

24 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

A Range Rover at the site in Halewood

We want to offer customers greater choice, with even more exciting vehicles, crafted with that special British flair. We want to improve the quality of life for our customers and for our own employees, creating opportunities for more people to be part of the Jaguar Land Rover experience.”

To support the introduction of its new aluminium and lightweight technologies JLR has already invested £1.5bn. The new facilities represent the largest single investment in the Solihull plant in its 70 year history and created an impressive ‘factory within a factory’.

Incorporating Europe’s largest aluminium body shop and final assembly hall - collectively the size of 22 football pitches, the new facilities bring the Jaguar brand to Solihull for the first time.

As a result of the continued developments at Solihull, JLR is creating an additional 1,300 new jobs at the site. Applications for the new roles are now being accepted and following its commitment to enhancing employment opportunities for former service personnel in the wake of the Invictus Games, JLR is welcoming applications from military personnel who are leaving or have left the services.

JLR continues on its path of measured and sustainable growth with record full year retail sales in 2014 of 462,678, double that of 2008. A 2014/15 fiscal year investment of £3.75bn in product creation has seen the introduction of a host of new and exciting products and business expansion. The company’s headcount has increased to 32,000, 10,000 more than were employed just four years ago.

Tracking your top reads on www.themanufacturer.com last month

Best of Online

Popular blog contributions last month included: Navigating the tightrope of supply chain management

Success is as much about responding, as it is about adapting

Office Depot’s Nigel Crunden highlights how anticipating risk and potential break-downs are key to meeting demand and enhancing customer relationships – key elements of ensuring growth at a time when competition is arguably fiercer than ever. www.themanufacturer.com/articles/navigatingtightrope-supply-chain-management/

The adage ‘adapt or die’ has become ubiquitous with businesses needing to move with the times if they wish to thrive. As responsiveness becomes the new era of business evolution, Steve Winder, VP UK & Eire, Epicor Software UK, asks is adaptability still enough? www.themanufacturer.com/articles/success-muchresponding-adapting/

Is industry’s stumble a cause for concern?

Recent Office of National Statistics (ONS) figures provided a shock for some, as UK manufacturing output dropped rather than increased as expected.

Director of James Briggs Ltd (one of Europe’s largest manufacturers of aerosol and consumer chemicals), . st month cturer la Max Bass asks whether this fa u n a @TheM stumble, in an otherwise consistent ets from rited twe u o v fa tsector recovery, is a major e mos tion of th cause for concern.

A selec www.themanufacturer.com/ articles/industrys-stumble-causeconcern/

eets,rites Our tw ou your fav

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 25

The year ahead

Although confidence has fallen back, it is great to see that the manufacturing industry is predicted to continue to grow in a way that fuels the UK economy during 2015

Once more into the breach examines all the reasons to smile about UK manufacturing in 2015.

E

EF kicked off 2015 with the release of its fourth annual Executive Survey in collaboration with Aldermore.

The report examined 2014 and the year ahead, drawing on popular opinions from UK manufacturers.

Unfortunately, the findings were rather pessimistic. Traditionally, the bleakness of January is brightened by aspirations of fresh starts, new

26 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

HOT TOPIC

beginnings and hope for what could be in the forthcoming year. But, on the contrary, early 2015 headlines were dominated by news of manufacturing hitting a three month low.

EEF itself referred to the findings as a ‘sober start to 2015’, due to news of manufacturers’ expectations of an improvement in economic conditions falling from 70% in 2014 to 37% this year, with 17% expecting them to deteriorate, a 5% increase on last year’s results. Additionally, 38% reportedly do not hold much confidence for the global outlook, compared with 33% last year.

However, let’s not confuse pessimism with realism. At the beginning of 2013, industry reps expected a modest pickup and they were right, in 2014 the manufacturing

sector was expected to be brighter than 2013, and it was, with an increase in profitability and employee numbers.

Improvements from the previous year were bolstered in 2014 with the UK economy expanding at a good pace throughout the year and manufacturing set to achieve its strongest growth since 2010.

Emerging from a recession, manufacturers are reluctant to forget the difficult times that were a reality just a few years ago by taking growth for granted. There is reason for optimism but never a reason to rest on one’s laurels. While there are differences compared to the figures from the 2014 survey, respondents remain more positive on the UK’s economic outlook going into 2015 than in 2012 or 2013.

Seven in 10 manufacturers (70%) say the UK will be a competitive location, reinforced by confidence in the increase in staff numbers, sales, margins and productivity. Almost seven in 10 (69%) expect to improve productivity, while 58% expect to boost UK sales. Just under half (49%) expect to be taking on more permanent staff.

Additionally, export sales look positive, with just under half of manufacturers (49%) expecting to see an increase in 2015, while three in ten (30%) expect sales to remain steady.

The hotspots for export growth are expected to be North America, Asia and south America while, in line with ongoing economic and geo-political uncertainty, manufacturers see Europe and the Middle East as ‘not spots’.

Mark Stephens, deputy CEO and group commercial director at Aldermore is also seeing the silver lining in the 2015 outlook, highlighting the potential in innovation and exports. He says: “Although confidence has fallen back, it is great to see that the manufacturing

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The year ahead

industry is predicted to continue to grow in a way that fuels the UK economy during 2015.

“At Aldermore we’re seeing ever increasing demand from all sorts of innovative UK manufacturing firms needing to free up cash-flow to expand their business and take on new contracts.

“We are also seeing an increasing number of our customers making real inroads in the export market selling their produce across the globe. So the prospects for the manufacturing sector are still looking very strong going into 2015.”

Barriers to growth in 2015

While there is much to celebrate, there are potential obstacles manufacturers will have to navigate. Economic concerns regarding major markets continue to dominate the worries of many. Substantial downward revisions in the Eurozone and territories further afield are reflected in the International Monetary Fund’s global growth forecasts for the year ahead.

The eurozone is engaged in a longterm battle with deflation and low-tonegative growth, Japan is combatting

a looming recession and rising levels of debt in China was signaling a significant deceleration in growth rates in the second half of last year, as well as, fiscal difficulties in Brazil and a Russian economy hampered

by Ukraine-related sanctions. In essence UK manufacturers will dodge the major impact of such troubles but are still wary of the potential indirect fall-outs.

Significant movements in exchange rates also continue to be a substantial concern, due to a variety of factors, including non-wage employment costs, autoenrolment costs and possible payments from holiday pay changes.

Additionally, volatility in exchange rates continue to be a source of risk for companies in connection with import and exports, as well as, upward pressure on pay still expected. Solid growth is urging employers to raise salaries to retain skilled workers, maintain a productive and flexible workforce, while simultaneously achieving a firm’s strategic goals.

External finance equally remains a worry, as well as, cashflow problems and changing payment terms.

Optimism

Although the sector is not without its

It is particularly pleasing to see the manufacturing sector bounce back, despite signs of a slowdown in recent months.

However we must aim for growth that is sustainable for the long-term, rather than settle for second best

28 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

HOT TOPIC

risks, manufacturing is positioned advantageously to achieve growth in the coming year. Batting off recent signs of a slowdown, in data published by the British Chambers of Commerce, the manufacturing sector recorded increases in several areas in the second half of last year: Domestic sales (+36%, up from +23% in Q3) Export sales (+26%, up from +16% in Q3) Recruitment intentions (+85%, up from +73% in Q3) Turnover confidence (+62%, up from +60% in Q3) An all-time high number of businesses have set out to recruit staff in the last three months, in both manufacturing (+36%, compared to +32% in Q3) and services (+32%, up from +28% in Q3) The balance of manufacturing firms operating at full capacity rose by one point to +41% in Q4 A record number of manufacturers invested in training in Q4 (+39%, up from +32% in Q3) and a historically high proportion invested in plant and machinery (+36%, up from +29% in Q3) John Longworth, director general, British Chambers of Commerce, was confident that the recent data was an excellent starting point for UK manufacturing, saying: “British businesses are well placed to grow in 2015 – a testament to their hard-work and resilience.

“It is particularly pleasing to see the manufacturing sector bounce back, despite signs of a slowdown in recent months. However we must aim for growth that is sustainable for the longterm, rather than settle for second best.

“With employment and investment intentions at historically high levels… it is now vitally important that firms are able to convert their growth ambitions into reality.

“Strengthening our business finance system, which constrains the growth aspirations of too many firms, will remain a decisive factor in securing a sustainable recovery. Low interest rates and reduced regulation will also go a long way to creating an environment that encourages enterprise and wealth creation.”

Engineering innovation

A bold decision by its managing director is paying dividends for Ebac

Manufacturing a shift in perception Jonny Williamson uncovers the success stories driving the North East’s industrial revival and dispels the myth of a region in decline.

F

or many, England’s North East (covering Northumberland, County Durham, Tyne & Wear, and Teesside) will always be synonymous with shipbuilding, coal mining and steel production. Unfortunately, these three sectors are among those which have been hit particularly hard over the past 50 years, weakened by diminishing supplies, foreign competition and operation closures.

Being so inextricably linked to people’s perception of the area,

the fall in shipbuilding, coal mining and steel has negatively affected some’s assessment of the region’s industry in general, marginalising those sectors which are flourishing thanks to successful diversification, regeneration and financial support schemes.

Far from being a region in decline, the North East is currently home to 8,840 manufacturing and engineering businesses, employing upwards of 94,000 people and turning over almost £19bn annually (according to the North East Chamber of Commerce).

Alongside giants of industry the likes of Nissan; Hitachi; Gestamp Tallent; Nestle and Caterpillar, a myriad of SMEs are carving out their own successes in sectors ranging from automotive, aerospace and defence; to pharmaceuticals, oil and gas, and sciences.

30 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

One such company is family-owned Ebac, the UK’s leading designer and manufacturer of dehumidifiers and bottled water coolers. The company may have been hit hard by the financial crash, but managing director, Pamela Petty believes the root cause of its troubles arose even earlier when the UK “opened the floodgates for cheaper, imported consumer products.”

Facing falling sales and recognising current markets weren’t showing much growth, Petty made the bold decision to leverage Ebac’s existing technology in completely new markets. The turning point came in 2011 when her research uncovered that Ebac’s core products utilised refrigeration heat exchange, identical to that used in fridge freezers, and every single washing machine sold in the UK (at that time) was imported.

“More than half of the washing machines were imported from Italy, so they weren’t originating from a traditional low-cost base. We calculated, theoretically, whether or not it was feasible to design and manufacture a washing machine in the UK and sell it profitably, and the was answer was a resounding yes,” explains Petty.

Fast forward to today and Petty is commissioning the final piece of a new £7m washing machine production line, with £6m coming from the company itself and £1m being government funded, as well as new space to accommodate the company’s chest freezer factory.

“We acquired the brand, designs and production equipment of Norfrost [the market leader in chest freezers until recently following the owner’s liquidation].

Unlike the washing machines, which Ebac has started from scratch and developed its own range, we’ve taken a short cut into freezers.”

According to Petty, both products are scheduled to become widely available from mid-2015 and represent a significant change to the dynamics of the business.

Current annual turnover is £8m and with these two new initiatives in place, she predicts that figure will rise to £50m within the next two-three years.

“Addressing the myth of the region’s industrial decline is absolutely one of our motivations, so it’s great to have something that is able to satisfy the pillars of our business; that of manufacturing products here in the North East, selling to the domestic market, reducing the nation’s imports and keeping jobs in the local economy.”

Intelligent design

That sense of optimism is certainly felt across the region’s manufacturing community, with CEO of Tharus, Brian Palmer, noting that despite ongoing Eurozone and global difficulties, the region “is really quite buoyant at the moment.”

Having celebrated its 50th anniversary in 2014, Northumberland-based Tharsus is one of the UK’s leading manufacturers and developers of technologyled products having worked with clients such as Red Bull; 3M; BT; Safety-Kleen and Rapiscan Systems.

One of the business’ biggest successes of late was the launch of its original equipment design and manufacture (OEDM) concept, offering a turn-key solution combining the services of a design house,

North East Focus

The North East in numbers:

8,840 94 000 Employs upwards of

,

manufacturing and engineering businesses

prototype engineer, supply chain manager and contract manufacturer.

That aspect of the business is growing by almost 30% year-on-year, according to Palmer, who stresses that the business successes aren’t just for Tharsus, but for its clients as well.

To gauge a sense of Tharsus’ recent expansion, you need only look at its rapidly increasing workforce and turnover. In 2009, ODEM revenue totalled £1m, today that figure is closer to £10m with forecasts predicting a further 30-40 per cent rise. The technical R&D team has followed a similar trajectory, blossoming from just four in 2009 to a 30-strong workforce presently, as has the marketing department which has tripled in size.

“Everywhere you look in the business you see growth, both in terms of headcount and capability. The Port of Tyne has proven to be an excellent local business barometer due to the amount of cargo it handles, and it’s generally showing growth year-on-year, growth that is reflected across many of the region’s sectors,” Palmer explains.

With exports increasing from five per cent in 2009 to upwards of 40 per cent today, the firm’s supply chain now covers Japan, China Brazil, the US and “everywhere in-between,” says Palmer.

“It’s about intelligent design and adding true value where we can. Our

Addressing the myth of the region’s industrial decline is absolutely one of our motivations

People

Annual turnover of almost

£19bn Annually

whole model centres on how we are going to work with clients to give them a commercial advantage, optimise their product, maximise their sales and, in return, build our reputation.”

Overcoming obstacles

SPECIAL FEATURE

As is the case for most regions, the North East still faces challenges and is particularly vulnerable to fluctuations in the oil and gas sector due to the volume of local businesses engaged in associated sector activities.

OGN Group is one such example, delivering integrated industrial projects encompassing design, engineering, construction and installation such as for floating, production, storage and offloading (FPSO) vessels and subsea jacket structures which support oil and gas platforms.

In the face of such market volatility, CEO of OGN Group, David Edwards, says internally, project bids have become increasingly competitive with the international playing field difficult to keep level, and

externally, young people are cautious about whether oil and gas, and manufacturing in general, is a viable long-term career path.

“To achieve a sense of evenness, I would like to see government become more involved with the process as very good tax concessions typically accompany these projects, and should the UK adequately grasp the opportunities that lie inside renewable energy, the sector could increase in size dramatically, resulting in long-term, sustainable jobs.”

One of Tharus’ biggest successes of late was the launch of its original equipment design and manufacture (OEDM) concept

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 31

sectorfocus

Hit or myth?

B

ritain’s city centres have been revitalised and transformed, in ways that observers of the decline, decay and devastation of the 1970s and 80s could hardly have even dreamed of. Attendees at The Manufacturer Directors’ Conference and Awards presentations at the Birmingham ICC last November walked to and from their hotels through a clean, bright and really rather attractive modern plaza, shop, office and theatre complex that is a world away from the wealth-creating grit, grime and grind of the industrial past. The city is humming but it no longer resounds to the noise of metal bashing.

But productive industry is not far away and breakthrough technology is bringing it back inside the old city limits. Once upon a time, operations like Ford at Dagenham made everything. They had their own foundries, they cast engine blocks, machined them and even made their own fasteners.

32 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Are the historic urban manufacturing areas undergoing a renaissance? A combination of incentives, tax allowances, technologies and sheer coincidence might be making it so.

Ruari McCallion ventures into the cities.

Adding v reducing

“A lot of that sort of manufacturing has been driven offshore by cost pressures - and a lot of low-value can still be made more costeffectively overseas,” says Mike Kelly, director of business development for Innovate2Make, which is based at King’s Norton Business Centre – a bit more than a stone’s

throw from the ICC – who is happy to talk of his company’s passion to bring manufacturing back to the UK base.

But it is a different kind of manufacturing. In the past, large lumps of metal, such as engine blocks, would be cast and then drilled and machined out; it was ‘reductive’ manufacturing, if you like. The

The reason it works and is enabling the revitalisation of cities, along with the strengthening of niche manufacturing, is because of its flexibility

technology that enables Innovate2Make and other dynamic, smaller companies to compete is additive manufacturing - or 3D printing, as it is widely known.

“It’s high-value, complex components that can be effectively manufactured in the UK base,” Kelly maintains.

“Companies have moved from mass production and are seeking to achieve mass customisation.” He mentions the example of a footballer who wants his initials in the upholstery of his Range Rover Evoque, say. That may not be the most widespread

Urban manufacturing

Aid & succour Government funding

Annual Investment Allowance increased to £500,000 from April 2014 to December 31 2015.

Previously as low as £25,000. Full tax relief for nearly all businesses, including corporations and partnerships/sole traders (but not “Mixed Partnerships”). Use to help purchase a wide range of plant and equipment. See also Lombard article in this month’s magazine

R&D Tax Credits

A large fund available for IP and R&D. SMEs may benefit from cash fund – see part 2 of this feature

application of mass customisation – which might be the point for the footballer’s pimped-out ride – but it illustrates at least one possibility.

Another is the 3D printed titanium mountain bike frame that was designed

by Empire Cycles of Bolton, Lancs, and engineered and manufactured by Renishaw plc of Wotton-Under-Edge, which is headquartered on the site of a 19th Century woollen mill. Its ultimate realisation of Empire’s vision is a frame that weighs only 1400g but retains the robustness needed for mountain biking.

The design and construction is claimed to have all the advantages of a pressed steel ‘monocoque’ construction but without the tooling that would be prohibitively expensive for a small manufacturer. The bike is on show until April 19 at the Manchester Museum of Science & Industry (MOSI), along with more than 500 other 3D printed objects.

The same but different

Finance BGF, Venture Capital, ‘Business Angels’, asset finance, crowd funding, banks.

SECTOR FOCUS

Others

Catapults, Enterprise Hubs, incubators, spinout support, ‘science parks’, etc.

Manufacturing Advisory Service – now Business Development Service

The technology that enables Innovate2Make and other dynamic, smaller companies to compete is additive manufacturing or 3D printing, as it is widely known

“3D printing enables that goal of mass customisation,” Kelly says. It is the crucial breakthrough technology, at both ends of the value chain: OEMs and smallest suppliers, from bikes to aeroplanes, where even a gram saved can make a difference to fuel consumption and economic viability. If a component can be improved, lightened, made more cheaply, the manufacturers won’t wait for a model change - they will put it on the next plane coming down the line.

“3D printing is the technology that plays into that. It allows a greater degree of complexity in component design and manufacture,” he explains and points out that couple of grams taken out of a seat buckle, for example, may be little on its own - but multiply it by the number of seats in the plane and by the number of miles flown and it adds up to millions of dollars in savings. It’s a valid point but how does it enable revival of the urban manufacturing base? It’s all a mater of scale, Kelly maintains.

“In the old days, a company like Ford would need a huge area of land to house its manufacturing capability. 3D printing is more of a cottage industry,” he says.

As an example, he describes his own company’s machine. It is clean, it is small and it can be unmanned. “Last thing at night, before I go to sleep, I can use my iPhone to look at what it’s doing and leave it to get on with it.” The Innovate2Make factory is small, it is flexible, it is adaptable, it can undertake rapid prototyping or short run production at a commercial and economic level, for all parties. And it is essential to the revitalisation that he maintains is indeed happening.

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 33

Urban manufacturing

Reach out – they’ll be there

“Back in the days of the old, large facilities like Fort Dunlop, people had to come to it, to work and to produce,” Kelly says. “We are now seeing networks of 3D printing operations - in the back garden, in sheds, in garages, in small industrial units - all linked together by the Cloud and providing services from basics to components for aero engines. It is hands-free. People take 3D drawings, provide the printer with its raw materials - epoxy, plastic, metals, etc - press a button and off they go, producing components.” The reason it works and is enabling the revitalisation of cities, along with the strengthening of niche manufacturing, is because of its flexibility.

In traditional manufacturing a tool had to be made for the part and it would usually be necessary to commit to production runs of hundreds of thousands of components. 3D printing allows a much higher level of individualisation. If companies want to change parts rapidly, they can do so. And levels of quality are higher as well. The “democratisation” process that Kelly says it represents means that anyone with space for a 3D printer and access to the Cloud can become a manufacturer. It offers shorter lead times and logistics channels but also the ability to make complex parts, which would traditionally have required a number of different components brought together, as a single piece.

“A typical large pump, for example, would traditionally have been cast, machined and broken down into several components,” says Kelly.”Using 3D printing enables part count to be cut from 50 to just five. This is what is already happening.”

Blink Andel Blink Medical has teamed up with Andel Plastics to produce a mould tool that will allow a device used in eye surgery to be made out of plastic instead of ‘traditional’ stainless steel. The ‘Double Ended Marker’ is lighter, safer, and more cost effective to manufacture and the companies claim that it will help to achieve considerable savings for the NHS and health organisations across the rest of the world.

With strategic support from the Manufacturing Advisory Service (MAS), the new partnership will see production of the instrument moving from China to Birmingham, creating three immediate jobs in the process. Sales are expected to approach £100,000 in the first 12 months. Andel Plastics, based in Tyseley, Birmingham, recently invested nearly £70,000 in a new clean room to assemble specialist instrument packs for the medical sector.

It employs 20 people and had a £1.4m t/o in 2014. Blink Medical Ltd, based at Birmingham Business Park, was the UK’s first supplier of single use instruments and customised instrument sets, in 1994. It has a turnover of over £3.2m and employs 18 staff.

The money thing Any revolution needs money and support.

Ruari McCallion’s cap is in his hand.

34 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

T

SECTOR FOCUS

he macro dynamics in the economy are the best they have been for 20-30 years, in terms of facilitating smaller businesses especially.

The Government has a focus on manufacturing, the costs of manufacturing abroad are not as advantageous as they were and intellectual property is fast becoming the essential lifeblood of small and niche manufacturers. Macro factors percolate down and small companies are able to benefit from the improved climate.

And the Government support is more than just soundbites, according to Mark Bryant, head of manufacturing at Business Growth Fund (BGF).

“R&D tax credits, capital allowances, Innovate UK, the Catapults and Enterprise Hubs all help,” he says. “The holistic

approach, including STEM Ambassadors, is beginning to happen. It is a lot of little things, coming together.” But there are still challenges – what he describes as the “Valley of Death”, in particular. It is the gap between the funding and support available for small companies up to proof of concept but it is the next jump, to expansion and commercialisation that is difficult to bridge.

BGF itself is probably the wrong side of the divide as its remit is to distribute its £2.5bn of capital funding generally in cheque sizes in the £2-£5m range. Its target businesses have annual turnovers in the £5-£10m range. One source of that ‘gap’ funding is venture capital but that is not always entirely welcome.

“Entrepreneurs don’t really like the idea of selling or disposing of their companies in five years’ time,” Bryan observes. If a business is the right size then BGF can be just the job, as it is not allowed to take control of companies. But it can

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Urban manufacturing

point to several success stories, including Hobs, PurePrint, Molecular Products in Harlow, which makes CO2-absorbing rebreathers, and Trunky, the injection-moulded sit-on luggage bags aimed at children, which are made in Plymouth. And ThamesCard, in Rayleigh, which makes secure credit cards.

The banks have made clear that they are interested in lending to businesses. They are offering a range of options, including asset finance. It is a pretty good way for a business that doesn’t have much in the way of traditional collateral – i.e., property – to buy essential equipment.

It is the gap between the funding and support available for small companies up to proof of concept but it is the next jump, to expansion and commercialisation that is difficult to bridge

Novel and innovative methods are getting closer to the mainstream as well. Crowdfunding tends to raise smaller amounts, with £10,000 being a good total, but peer-to-peer lending is another option and RBS has announced that it will direct customers towards such sources, in the right circumstances.

The list of incentives and tax credits available from government is real and should not be ignored.

R&D tax credits are very attractive for businesses that are leveraging clever ideas and the enhanced Annual Investment Allowance (AIA) should be taken advantage of before it runs out.

SECTOR FOCUS

RDM Group RDM Group of Coventry has invested over £400,000 on acquiring an additional 20,000 sq ft facility on the Bilton Industrial Estate. It has been fitted out with two CNC machines, three injection moulding machines, a threeaxis router, laser engraver, the latest CAD/CAM software and a dedicated area for vehicle conversions and builds.

Durable Technologies

The managing director of Durable Technologies has invested more than £200,000 into setting up his own manufacturing facility in Hartlepool and developing a supply chain involving a number of local businesses. Working with the MAS and the North East Business and Innovation Centre (NE BIC), the company has completed its first installation at UK Steel, with plans in place to sell over 7000 units this year. This will lead to the creation of four new positions, doubling the workforce within 12 months.

The company’s latest product, the ‘Light Harvester’, contains the light detector and controller in a single, easy-to-mount casing and uses Bluetooth technology and a special app to view data and make adjustments including to light levels and timeouts. The trials of the first installation show that lighting costs in monitored areas can be reduced by nearly 80%.

Durable Technologies, won the North East Business Award for Innovation in 2013 and is currently working on another major project to produce light controllers for a household electrical manufacturer.

Combined with the ‘Light Harvester’, this will see the company increase turnover by 100% to £600,000.

36 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

The new machinery and software means RDM Group can now offer precision machining, injection moulding, surface engraving, routing and prototyping services. The project received support from Coventry and Warwickshire Local Enterprise Partnership (CWLEP) and will enable RDM to develop new business, repatriate sub-contracted production from China and promote its capability to produce special vehicles and low volume builds.

Sales are targeted to reach £25m by 2018. RDM employs 38 people and also has Telematics and Meditec divisions.

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INTERVIEW

Bentley Continental GT3 winning third round of Blancpain Endurance Series

I

Following a record year, Peter Digby, Managing Director of Xtrac, talks with Jonny Williamson about building on the success of 2014 and maintaining the company’s global reputation.

t’s an overcast and grey morning when I sit down to talk with Xtrac’s Peter Digby, so his cheerful demeanour comes as a welcome distraction. The managing director has every reason to be so happy, with numerous successes on both a personal and business level - though you’d be hard pressed to separate the two for this passionate motor racing devotee.

The past year saw Digby named Institute of Directors’ Global Director of the Year, CBI-backed Growing Business Awards’ Entrepreneur of the Year and selected for ’s inaugural Top 100 industry champions. Xtrac’s trophy cabinet grew with the addition of three accolades from The Manufacturer of the Year Awards (Leadership & Strategy,

38 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Medium Sized Enterprise of the Year, and the highly coveted The Manufacturer of the Year); and the business achieved record sales figures and orders for the coming months.

“2014 – Xtrac’s 30th year in operation – has just been fantastic for us and beating the likes of Rolls-Royce, BAE and Babcock to take home the overall Manufacturer of the Year is a clear acknowledgement of the whole team’s hard work and dedication,” he explains.

The components which combine to produce Xtrac and its subsequent successes aren’t unique, Digby admits, but they are things that everyone has bought into whole-heartedly and without reservation.

He cites the company’s firmly entrenched family culture and employee shared ownership (with every one of the 280-strong workforce a shareholder) as being significant factors, alongside its well-established apprenticeship and training programmes.

Racing pedigree

Having been involved in motorsport for more than three decades, Xtrac is renowned in the high-level worlds of Formula 1, Le Mans and Indianapolis.

Priding itself on producing the highest quality and offering the best service, the company hasn’t been known for offering a low-cost product; however that changed in June 2014 when Xtrac launched a very competitively priced new gearbox for GT cars. “A move which came as quite a surprise to the entire marketplace,” says Digby, “None more so than the company’s competitors.”

To date the GT gearbox has been adopted by McLaren and Lamborghini, with a number of others preparing to

Peter Digby, Managing Director, Xtrac

INTERVIEW

Headquartered in a purpose built 8,200 sqm factory located in Thatcham, Berkshire Two US facilities located in Indianapolis and Mooresville, North Carolina

Peter Digby’s best and worst career moments

In 2013, Xtrac reached $1bn worth of sales since the company was established, with $600m of exports

Best: Since the age of 20 I’ve been working in one of the best industries you could hope to work in, especially as I love motorsport.

In terms of an individual high, I don’t think it gets any better than the week I recently had winning Entrepreneur of the Year on Tuesday, going to see the Prime Minister at Downing Street on Wednesday, and winning overall Manufacturer of the Year on Thursday. That was a pretty good week to get out of the office!

First, second, third, and ninth of the top 12 places in the 2014 Dakar Rally

Worst: Without a doubt, a low point is if we ever lose a customer. Though it rarely happens, I really take it to heart.

We may not be the cheapest, but the factory team works incredibly hard to look after our clients, our engineers offer a fantastic service and we always deliver a superior product.

Price invariably becomes a predominant factor during negotiations with central purchasing for major motor manufacturers and to lose out for the sake of a few hundred Euros is always very sad, not just for us, but for them. That being said, several customers have returned over the past 12 months which is wonderful. They’ve recognised that it’s not always about price, it’s about value, and that’s what Xtrac delivers, so to have them back is a great feeling.

Currently, more than 70% of Xtrac’s products are exported Seven podium positions at Le Mans 2014 including first, second and third overall, supplying transmissions for 35 of the 55 cars be announced shortly. Digby says it’s been quite a change to Xtrac’s business, but so far expanding its reach to not only cater to the very top end, but take in the medium and some of the lower levels of motorsport as well, has proven successful.

When pushed as to the reason behind such a dramatic change, he candidly replies that Xtrac was at risk of becoming a victim of its own success. In motor racing being number one is incredibly important, he states, adding that for many areas of the business, Xtrac had more or less saturated the market.

“The upside of that is having the confidence to know we can sell very large numbers of gearboxes, so rather than making them in small batches of ten or 20, we made 100 which resulted in a lower individual price. The first 100 sold almost immediately and we are already producing a second batch.”

The other big change of late arose from Xtrac launching its first nonmotorsport division – automotive & engineering – to supply gearboxes for hybrid and electric supercars. Though he describes it as still ‘a niche market’ currently, Digby expects the automotive sector to become far more involved in the next level of hybrid and electric vehicles in the coming years, predicting a rise in ‘very lean burn internal combustion engines’ and a decline in interest towards diesel.

Youth engagement

Having been an engineering apprentice himself, Digby recognises the importance of nurturing the next generation of talent and is very proud

An F1 gearbox manufactured in Xtrac’s Thatcham buildshop

of Xtrac’s annual intake of five apprentices and four graduates.

Having built up a highly regarded reputation both in the local region and wider industry, Xtrac received more than 100 applicants for this year’s five apprenticeship positions and interestingly, notes Digby, all of the recent apprentices were aged 18 and had A-levels or equivalent rather than arriving straight after school at 1, adding that with an ever increasing benchmark, even he might struggle to be accepted these days.

A recent analysis showed that following their initial training, almost 60% of Xtrac’s apprentices remain with the company for a minimum of five years; a solid baseline. However the managing director is keen to see it raise higher.

“Where we tend to lose them most is Formula 1 teams in need of mechanics and engineers. In fact, as of today, every single head of transmissions at each of the Formula 1 teams is an ex-Xtrac employee, which really says something. Although February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 39

Peter Digby, Managing Director, Xtrac

BIOGRAPHY Peter Digby MD, Xtrac

1974 - 1979: Aeronautical Engineering Technician Apprentice, British Airways 1979 - 1980: Workshop Technician, Williams Formula One 1980 - 1981:

Production Controller, Williams Formula One

1981 - 1985:

Production Manager & Factory Manager, Williams Formula One

1985 - 1986:

Assistant Managing Director, Formula One Race Car Engineering

1986 - present: Manufacturing Director, Managing Director and Chairman, Xtrac Limited Peter Digby is a member of the British Racing Drivers Club and the Institute of Directors. He is a Vice President of Chelsea Football Club and pastChairman of the Motorsport Industry Association. Aside from Motorsport, his hobbies include skiing, shooting and football.

40 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

it can be frustrating to lose somebody, occasionally we are approached for a recommendation, and the person leaves the business with our blessing.”

Xtrac has taken on several female apprentices over the course of its history, though Digby accepts that the ratio is still in the minority. Eager to see an increase in young women’s interest in apprenticeships, he was recently invited to Downing Street to discuss such challenges.

“The young women who’ve joined Xtrac have all performed incredibly well, especially in areas that require a high level of attention to detail. We are currently working with the Motorsport Industry Association to improve how the dynamism of engineering is sold and better reflect the worthwhile careers industry offers to both young men and women.”

Road ahead

Digby’s meeting with Prime Minister David Cameron leads me on to my next question, that of how the Government can better support UK industry – particularly pertinent with 2015 being an election year.

“I’d like to see anything introduced to help finance genuine apprentice schemes, i.e. not stacking shelves in a local supermarket, where I feel they may have been over-used, but rather furthering legitimate three or four year engineering apprenticeships,” he responds.

“Generally, the Government has been pretty good in supporting industry, with R&D tax credits made for companies such as Xtrac. From the investment we’ve made in machinery, I’d like to see some improvements in capital allowances, and touching on our own sweet spot, anything to cut the red tape and help make creating employee owned companies easier.”

Focusing on the task at hand, Digby says surpassing the successes of 2014 will be no easy task, but the business has got off to a great start with all initial budgets and forecasts exceeded, several new products in the pipeline and an order book 10% greater than where it was this time last year.

In late-2014, Xtrac was awarded a substantial new contract from the FIA and ACO (the governing organisations of Formula 1 and Le Mans respectively) to produce a new gearbox for the new

INTERVIEW

As of today, every single head of transmissions at each of the Formula 1 teams is an ex-Xtrac employee, which really says something

LMP3 Formula, and it has just landed new orders in China and South America, where it already heads up the biggest Formulas in Brazil and Argentina.

Innovation nation

Having worked in motorsport for virtually his entire career, Digby has seen many innovations come through and he says the popular phrase “race on Sunday, sell on Monday” is still very applicable. He cites carbon fibre as one such development, with the composite material having had strong support in motor racing for almost a quarter of a century and, as the materials cost has reduced, its very high strength to weight ratio has been increasingly incorporated in production vehicles.

Xtrac’s business innovations draw on a combination of being externally marketplace or customer-led, and internal R&D or suggested by staff, on the broad understanding that “if it’s a good idea, it shouldn’t be left sitting in a filing cabinet,” says Digby.

Reflecting on the big challenges facing industry, the managing director highlights the fact that the UK isn’t a low-cost manufacturing centre, with Asian and eastern European firms, for example, able to purchase identical machines to those that Xtrac employs.

He says UK manufacturing must look to the top end of the marketplace where it can specialise, innovate and add the most value, as well as become more involved in new technologies, directions Digby has worked hard to align Xtrac’s path to.

“That’s really where we concentrate our efforts, new technology, low volume, high quality and short delivery time, and build a fantastic brand along the same lines as JLR or McLaren. British manufacturing is once again fashionable, we have a whole host of high profile products and brands to be proud of, and Xtrac is honoured to be a part of that.”

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interview

Simon Middleton

Founder, The Great British Banjo Company Since the original Kickstarter for the Shackleton Banjo, you’ve extended into other products under the Shackelton brand.

How important is managing a brand rather than a product to your business model?

Before I got into making instruments I was a brand strategist. I wrote books about branding and I’ve sort of influenced my own approach to my business. When we started the banjo making, we needed a good story and the best British banjo story we could find was the story of Shackelton. We used that story to promote the factory and that project. But what happened then was about 50% of the enquiries we got were from people who weren’t particularly interested in Banjos, but were interested in British manufactured goods and were interested in the Shackleton story. It was then that people started to ask “what else have you got?”

Can the ‘story’ strategy apply to more traditional manufacturing businesses?

I think it depends if the business is making for other businesses or if they’re customer facing - we are absolutely consumer facing.

Consumers don’t buy products, consumers buy stories, and that’s always been my philosophy. I think lots of other British manufacturers could follow the same path. In fact I wish more of them would.

42 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Does the fact your supply chain is extremely local play a part in your success?

Actually I don’t think it has to do with Norfolk. The people who bought a jumper from us in Moscow and Portland, they don’t care about Norfolk or where I’m based. They care about two things; one, the brand and; two, it’s British made.

These two people, who are really good examples for us, they can tell their friends about this great jumper they’ve got based on the photo of a British explorer taken over 100 years ago, made by a small British company.

They’re not interested in Norwich or Norfolk or London or wherever, they’re interested in Britain.

Don’t go into Kickstarter unless you’re willing to work 15 hours a day at it How successful have your kickstarter campaigns actually been?

According to Kickstarter we were in the top five per cent of successful campaigns. Of course there are some which have raised more money than we have, but the truth is with crowdfunding is that half of these campaigns fail. Even of the ones that succeed, the majority

of them are very small. We managed to raise nearly £50,000.

How confident were you going in to the crowdfunding domain?

Did you have a fall back plan in case you didn’t pull it off?

The fall back plan is to sort of dust yourself off and start again another day.

My plan is the same as Shackleton’s if we don’t make it we’ll come home, dust ourselves off and we’ll try again next year. If I worried too much about failure, I wouldn’t have started a banjo company.

What advice would you give to a small company looking to do something similar with crowdsourcing?

Don’t go into Kickstarter unless you’re willing to work 15 hours a day at it. It is all consuming. You can’t just set it up and then go on with business as usual.

The other bit of advice that you don’t necessarily have to seek crowdfunding in isolation. We are also seeking funding through traditional channels.

We’re selling shares in the company to Angel investors.

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Learning to lean

Lean Management Journal Editor Andrew Putwain highlights some of the stories from the latest edition of the magazine. This issue looks at the beginnings of lean’s adoption of sustainable and green-friendly policies.

G

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reen policies are all the rage and politicians are falling over themselves to deliver empty promises on how to combat climate change and global warming. The first task

Iss ue

10 Vo lu m

e4

| Dec/Jan 2014/15

| www.leanmj.com

GREEN SHOOTS, AND ST S AYS

This issu e of lean looks at the b ’s ad eg and gree option of su innings stai n-friend ly polic nable Organis ies. ati edition ons and int

erviews inc fea Rambo lude: Adnam ll s, Dessa tured in this Paris, Lin Gas and Oil, ult Systé SM mes, SA Cunning coln Forbes, Jos MT Industry Partners Fo ham. eph Pa , ris, Bill rum, Joseph Bellows IN THIS and Jea n ISSUE: Lean an d green : Florida Internati Lincoln Forbes creating onal Un , adjun ct pr iversity, su the cons stainably bu analyse ofessor at ilt bu s lean’s truction ro industry ildings and how we le in Lean ac more en co ca vironm the best unting: Cons entally n make ultant Jea friendly. way for and ho a n bu Cu sines nning w the ide as can s to undertake ham explores benefit Manag an orga leaning its bo ing busin oks, nisation esses for approa . ch the futur e; Zokaei : Andy Wood , partner , CEO of a sustainable in lean at S A Adnam s, and a practic business prac Partners inves tigate su Keivan tices. Is al and the sta pragmati 21st ce ntury? c approa idea a piped inability rea ch to pr Continu oductio m or ou n in the senior m sly improving an Manufa ager of DELM management: ctu Tu about ho ring Intellige IA Global Enter an Nguyen, nc to man w manufacturer e at Dassault prise agemen Systè s can tak t. e a mor mes, talks e lean ap proach

A

n insidious threat lurks quietly in the shadows – our environmental sustainability in relation to the built environment.

Built facilities account for 40% (three billion tonnes annually) of raw materials use globally. In the US, buildings account for 65.2% of total electricity consumption, more than 36% of total primary energy use, and 12% of potable water. They generate 136m tonnes of construction and demolition waste and 30% of total greenhouse gas emissions. Fossil fuels continue to be depleted at a relatively rapid rate; in turn, greenhouse gases are

44 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

is to point the finger at factories, farmer, and manufacturers. But in this issue, LMJ explores how this stereotype could be on the way out with lean values being embraced by many producers to help them create more sustainable and less wasteful projects and products.

Lean and green

Lincoln Forbes, adjunct professor at Florida International University, analyses lean’s role in creating sustainably built buildings and how we can make the construction industry more environmentally friendly.

Lean construction is a collaborative approach to project delivery, in which stakeholders, including the project team and the owner, seek to optimise the overall project, minimising waste in all forms and maximising value degrading the ozone layer faster than climate change experts think can maintain the planet on a sustainable path.

Lean construction is assumed to include both the design and construction phases of a project. Construction Industry Institute describes lean construction as “the continuous process of eliminating waste, meeting or exceeding all customer requirements, focusing on the entire value stream, and pursuing perfection in the execution of a constructed project”. Waste represents activities or resources that consume time and/or cost, but add no value.

Lean construction is a collaborative approach to project delivery, in which stakeholders, including the project team and the owner, seek to optimise the overall project, minimising waste in all forms and maximising value. It contrasts strikingly with traditional

construction practices in which project team members seek what is called local optimisation to maximise their individual progress and their profits.

This often happens to the unintended detriment of other team members and the project as a whole.

Target value design focuses designers on meeting (and exceeding) owners’ project requirements at prices below the market rate, while providing high quality and constructability.

www.leanmj.com

Getting clever quickly

I

Katrine Graae Lauritzen of Ramboll Oil & Gas a Danish engineering firm, explores how the company has embraced lean and enacted its seven golden rules to a successful lean transformation.

n an effort to become stronger and leaner, Ramboll Oil & Gas has adopted the main principles from lean, and translated them to fit the company’s production of knowledge and knowhow. What the company wanted to achieve with this transition was to find a structured way to become clever faster and learn all about the potential pitfalls in a project as early in the process as possible, in order to be able to prevent and avoid delays and misunderstandings.

The world of oil and gas is very complex and many projects are extremely large. This means that there is great risk involved, both in terms of economic risk and in terms of risk of personnel and environmental danger.

Further to this, a lot of people are involved in designing an offshore facility, and where many people are involved at the same time, the risk of human error arises.

Engineers live a life with constant interdependent deadlines. Because of the nature and size of the projects they deliver, complete control over interfaces is paramount.

When Ramboll started going lean 10 years ago, the company was growing rapidly, and to ensure that the quality of work remained at the same high level, the management saw the potential in adopting the lean philosophy. Projects were getting bigger and involved more and more people and the need for finding a solution that could help break down each project into smaller bits and make the entire process of the highly complex projects transparent was becoming imminent. By starting to work lean, the company would make sure that all team members understood how their part contributed to the project in its entirety.

The world of oil and gas is very complex and many projects are extremely large

Lean manufacturing

Managing businesses for the future; a sustainable approach Andy Wood, CEO of Adnams, and Keivan Zokaei, from S A Partners investigate sustainability in lean business practices. Is the idea a pipedream or a practical and pragmatic approach to production in the 21st century?

A

ccording to Jonathan Porritt, founder of the Forum for the Future: “A governance shift is occurring in the field of sustainability, with governments stepping back and businesses stepping forward to lead the change”.

The whole idea that democratically elected governments will care for the non-proximate and non-contemporary humans, just as much as their existing constituents, seems to have failed. Today, the notion of sustainable development and its integration into the core of governments’ policy making is but conceptual social science. Look at the utter failure that was the Rio+20 Summit. In June 2012, at Rio+20, the leaders of 190 countries grouped together to celebrate “The Future We Want”. Instead, what they committed to, at best, could be described as the lowest common denominator consensus that hardly delivers any scalable benefits. In the United Kingdom, in 2010 the Sustainable Development Commission, the country’s main sustainability watchdog, was axed as part of the coalition government’s spending cuts. And, in the United States, in 2012, neither candidates thought climate change worthy of mention during Presidential campaigns.

However, there is another side to this story with more and more private sector companies stepping up to the plate to make their businesses more sustainable. Whilst the government’s lack of decisive action is worrying, one is encouraged by the number of leading-edge organisations that put sustainability at the heart of what they do. Going green has become a key economic driver for forward-looking firms such as Toyota, Walmart, DuPont, Volvo, Sainsbury’s, Tesco, Unilever, Marks & Spencer, General Electric (GE) and Adnams – all of whom have invested heavily in greening their products and processes over the past few years.

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 45

EEF Insights

Manufacturing Leadership

A new year brings new challenges Mark Stephens, Deputy CEO and Group Commercial Director of Aldermore, comments on the manufacturing industry being set to achieve its strongest rate of growth in 2014 since 2010, meaning the fourth annual EEF survey starts in a good place.

T

hat said, confidence has weakened since the start of 2014, when a moderate outlook was forecast. The perceived outlook has weakened slightly as a result of concerns around the global economy, which has led UK manufacturers to be hesitant in their forecast for 2015.

However, manufacturers are more confident of the UK’s economic outlook going into 2015, than they were in 2012 and 2013. It is important to note that the UK is still seen as a competitive place to do business, and ultimately, manufacturers are confident that they can achieve sales growth in the year ahead.

The top priority for manufacturing firms in 2015 is to increase their efforts on marketing and branding, in order to build their customer base. But they also intend to prioritise investment in the growth of their companies in 2015, which is excellent news. Another key priority for 2015 is to launch a new product or service, showing that the sector remains confident there is room

46 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

for their product base to grow in the coming year.

In terms of the perceived challenges, rising input costs remain a concern for the largest proportion of manufacturers. Challenges that are tied to the deteriorating global economy such as exchange rate risks and economic disruptions are feeding into manufacturers’ worries for 2015. But overall, manufacturers are ambivalent towards whether or not 2015 will present more opportunities than risks for their firms, with the same proportion agreeing that there are more risks than opportunities in the year ahead as disagreeing.

All in all, there is confidence that the positive trends of growth in the manufacturing industry will continue into 2015, showing that the positives outweigh the negative. It is particularly welcoming to see that firms have predicted a rise in activity levels, which will ensure that many will continue recruiting in 2015. The manufacturing industry looks set to grow which will boost local economies up and down

Challenges that are tied to the deteriorating global economy such as exchange rate risks and economic disruptions are feeding into manufacturers’ worries for 2015

the UK. In April 2014 the Government doubled the annual investment allowance as part of its efforts to support the UK manufacturing industry and it is clearly working.

At Aldermore we’re getting ever increasing demand from all sorts of innovative UK manufacturing firms needing to free up cashflow to expand their business and take on new contracts. We are also seeing an increasing number of our customers making real inroads in the export market selling their produce across the globe. The positive outlook for manufacturing is testament that more and more firms are now able to access the finance they need to invest, grow and make a profit.

Although growth is expected on a lesser scale when compared to 2014, it is great to see that the manufacturing industry is predicted to continue to grow in a way that fuels the UK economy.

EEF Conference

Manufacturing Leadership

The countdown is on A With less than a month to go before EEF’s flagship national manufacturing conference, time is running out to book your place and learn from best practice experts across industry.

t the conference, to be held on February 26, you can challenge speakers from the main political parties on what they will do for manufacturing in the next parliament.

Whether you are a small, medium or large company the conference also gives you an ideal opportunity to hear the ‘Best of British’ in the morning including Tony Walker, deputy MD of Toyota UK, Nicola Salter HR director of Williams F1 and Richard Kirk, CEO of Polyphotonix, a success story from start up.

The afternoon will look at how we can sustain the current manufacturing renaissance and what companies need to be thinking about over the next

20 years. This panel will include Dick Elsy of the High Value Manufacturing Catapult, Brian Holliday from Siemens Digital Factory and Sophie Thomas from the RSA, an expert in eco design and sustainability.

As well as the Financial Time’s chief economics commentator Martin Wolf and the Rt Hon Matthew Hancock MP - Minister for Business, Enterprise & Energy, there will also be senior politicians announced closer to the time. There will also be the opportunity to host your guests and customers at EEF’s prestigious annual dinner in the evening where the Guest of Honour will be the Business Secretary, Rt Hon Dr Vince Cable MP and the after dinner speaker will be the broadcaster and former politician Rt Hon Michael Portillo.

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www.mmbarcoding.com email: marketing@mmbarcoding.com February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 47

How green is green?

Victoria Fitzgerald updates on the progress of the EU 2030 green emission targets.

N

egotiations in Europe to set out a fair and supportive framework for EU green policies are hugely important to manufacturing in the UK, particularly energy-intensive (EI) sectors like steel.

Coupled with its associate metals sectors, the steel industry comprises over 24,000 enterprises and directly employs more than 33,000 people.

Additionally it contributes £45.5bn to the UK economy in 2012, and with limited short-term options for reducing emission, steelmakers are extra vulnerable to rising prices. Steel is vital for many of the UK’s strategic supply chains, playing a paramount role in the UK evolving into a more resourceefficient economy.

Concerns lie in whether policy makers who established the 2030 targets and are instrumental in revising the EU Emissions Trading System (ETS) are aware of the challenges faced by EI industries in decarbonising, as well as whether the introduction of a Market Stability Reserve is really the answer enriching the EU ETS. Roz Bulleid, senior climate and environmental policy advisor for EEF told : “There are several aspects to turn the 2030 package into a reality.

48 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

There’s going to have to be a number of legislative proposals from the European Commission, which are not going to be coming out until at least the summer.”

Emissions trading system

Concerns lie in whether policy makers who established the 2030 targets and are instrumental in revising the EU Emissions Trading System (ETS) are aware of the challenges faced by EI industries in decarbonising

The EU ETS was set up to deliver EU emissions reductions goals in a harmonised and cost-effective manner, however imbalances within the system caused by a large surplus in allowances (emissions permits which represent the right to emit or discharge a specific volume of the specified pollutant), reducing the incentive for low-carbon, and an increase in climate change costs are jeopardising the value of the ETS. Jos Delbeke, director general for Climate Change Action at the European Commission, in a January debate for Vieuws, the EU policy broadcaster, said: “The ETS has functioned very well over the last couple of years and the prices have dropped very low.

“However, there is now an inbalance and a surplus is now hanging out there. The system must work better and the MSR (Market Stability Reserve) will do that.

“In addition, over time the number of allowances in the system will be reduced, so the linear reduction factor will increase

2030 emission targets

from 1.74% to up to 2.2%. “We believe that these two things will bring the ETS back to being a central pillar.”

Market Stability Reserve

Critics wonder if the MSR is sufficient to address the ‘enormous surplus’. Bas Eickhout MEP Green/ European Free Alliance Shadow rapporteur for the ETS MSR proposal argues that while the MSR will help the situation, “the proposal of the Commission is not good enough”. He explains: “One of the biggest problems with the MSR, is if it so good, why are we waiting to start in 2021?” Bulleid at EEF is also hoping for an earlier start to begin extra carbon protection provisions. Eickhout also questions how many surplus allowances will should be removed to allow the system to function better.

In addition, it is important to ask how the success of the MSR will be measured, an area that the Commission has remained vague on, with Delbeke retorting that it will be assessed “by doing what it is intended to do”.

All parties are in agreement that innovation and investment in energy efficiency is required to support the effectiveness of the EU ETS.

Carbon leakage

The 2030 conclusions reached in October stress the need to continue free allocation to sectors at risk of carbon leakage beyond 2020 at a level that guarantees the most efficient installations to not face undue costs.

In the steel industry extending current carbon leakage provisions and factoring in price increases produced by the MSR would increase direct ETS costs per tonne of steel to an average of €20.5/tonne (£16.3/tonne) by 2030 and €29/tonne (£23.0/tonne), assuming that the MSR applies from 2021. According to the EEF’s “UK Steel position on EU ETS carbon leakage provisions – Dec 2014” additional “costs of this scale would be fatal to an industry in which contracts can be won or lost on as little as £5/tonne. Firms would be compelled to discontinue investing and even producing in the UK.” EEF is pushing for a re-examination of the carbon leakage formula, with “the ultimate goal of ensuring the most efficient 10% of installations in every

ENERGY

Emissions target 2030 at a glance Central to the agreement was the binding target of reducing greenhouse gas emission by a minimum of 40%. To achieve the overall 40% target, the sectors covered by the EU ETS would have to reduce their emissions by 43% compared to 2005. Emissions from sectors outside the EU ETS would need to be cut by 30% below the 2005 level. This will need to be translated into Member State targets.

Increasing the share of renewable energy to at least 27%. The Commission proposed an objective of increasing the share of renewable energy to at least 27% of the EU’s energy consumption by 2030.

Increasing energy efficiency by at least 27%. The European Council, however, endorsed an indicative target of 27% to be reviewed in 2020 having in mind a 30% target.

Reform of the EU Emissions Trading System. The European Council underlined that a reformed, well-functioning ETS with an instrument to stabilise the market in line with the Commission’s proposal will be the main mechanism to achieve greenhouse gas emission reductions.

Governance. The 2030 framework proposed a new governance framework based on national plans for competitive, secure and sustainable energy, as well as, a set of key indicators to assess progress over time.

sector at risk receive 100% if their allowances”.

Governance

Talks in Brussels have been dominated by the concept of governance, Bulleid told : “This is how to ensure member states meet the targets, particularly on nonbinding energy efficiency.

“We would favour a market based approach, without strict rules on achieving energy efficiency targets, we would be more in favour of allowing the market to find the low-cost option.”

Good governance is integral to a wellfunctioning market. The European Council agreed that a reliable and transparent governance system will be developed to help ensure that the EU meets its energy policy goals. However, critics are wary that a governance system is not the solution to the problem and instead there needs to be a

There are several aspects to turn the 2030 package into a reality. There’s going to have to be a number of legislative proposals from the European Commission, which are not going to be coming out until at least the summer

focus on specific issues like investment into solar and wind energy.

Reality

In the summer several legislative proposals from the commission and member states will be released to outline how a reformed EU ETS will be achieved and until then manufacturers will have to accept the situation. Bulleid concludes: “It’s not an easy picture but there is a technical discussion going on and a much more forward thinking debate about what the ETS looks like, although we are bogged down on carbon leakage, we would like a much bigger review of the scheme and how it works. But for now we are accepting realities.”

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 49

E.ON

ENERGY

The largest sawmilling business in the UK A traditional family company, founded in 1848 Production capacity of over 1 million cubic meters of sawn timber per annum and also a major supplier of biomass fuel All logs sourced from responsibly managed forests

A cutting-edge relationship The right relationship can go a long way in saving precious pounds in energy expenditure. E.ON is helping one sawmilling business achieve exactly this.

W

ith eight separate sawmilling operations – seven of which are based in the UK – BSW Timber Group is one of the many energy intensive companies currently operating within the UK. The business currently spends between £4m - £4.5m per year on energy.

When BSW’s latest energy contract was nearing conclusion, the company’s group purchasing manager, Kevin Young was more than willing to give E.ON some attention when they called to discuss the company’s future energy plans.

“Our current contract was coming to a close, so it was an opportune time.

E.ON are a known entity, they’re not a small broker. And E.ON Portfolio

Solution (EPS) were known to us,” Kevin said.

The conversations resulted in a relationship, which saw E.ON creating greater visibility and transparency of energy costs within BSW’s business. As Kevin points out, they have taken a very hands-on approach.

“E.ON and EPS have given me a significant breakdown, not just transparency and visibility of what energy prices are doing going forward and how they will affect our

It’s been very, very hands on. Our E.ON account manager has been to a number of our sites and presented what they can do for us

50 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

business, but I can now see very specifically the effect of different third party charges on our costs.

“It’s been very, very hands on. Our E.ON account manager has been to a number of our sites and presented what they can do for us.”

“On top of that I went across to Düsseldorf and met our EPS portfolio manager and had a look at their systems,” Kevin said. “Since then, there have been a number of initiatives implemented here in the UK looking at opportunities, efficiencies and how E.ON can help us.

What E.ON presented was cost saving opportunities in terms of both peak period charges and Triad charges (Triads are the three half hour periods of peak demand that occur between November and the end of February and are used to set transmission charges).

“A big initiative they helped me with was focusing on peak energy periods and how we could potentially adjust shift patterns to miss those periods and save money.”

The relationship between E.ON and BSW is still in its relative infancy, so pinning an actual pound figure to the cost saving is difficult at this stage, Kevin says.

“I can’t put a saving on what we’ve actioned so far, but we’re now missing the peak periods and avoiding Triad charges at two of our sites. This gives a two fold benefit to this activity and E.ON have helped us greatly by highlighting the opportunity.

Kevin is quick to point out that energy is a “necessary evil” when it comes to manufacturers and energy intensive industries. But it is clear that manufacturers must take on a large percentage of the responsibility.

“Without energy we can’t run the sawmill. But it was actually trying to switch our employees’ mindsets to realise there are things you can do to make a difference. And what has fallen out of all of this is initiatives to reduce energy costs and make us more efficient with our energy. Where you make the saving is simply by using less.”

For more information visit eonenergy.com/EPS Who are EPS? E.ON Portfolio Solution (EPS) – an independent, wholly owned subsidiary of E.ON Global Commodities - offer market intelligence and advice on risk management strategies, working with customers to support them in creating bespoke solutions for their businesses.

S I X M O N T H S O F R E S E A R C H I N O N E DAY

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Royal College of Art and Dassault Systèmes get creative

Through the collaboration, students will be given the opportunity to access Dassault Systèmes design simulation technology

Stud CAT ents a IA C t the reati R ve D CA usin esig n g

Dassault Systèmes is entering a partnership with the Royal College of Art, which will see the incorporation of the CATIA Creative Design portfolio into the Vehicle Design curriculum.

T

he two-year Master of Arts programme is the world’s only established and dedicated post-graduate course in vehicle design.

Through the collaboration, students will be given the opportunity to access Dassault Systèmes design simulation technology, allowing them to produce 3D sketches, virtual clay models and simulate whole-vehicle designs using the ‘Imagine and Shape’ capability.

The software also includes ‘Live Rendering’ that applies ultra-realistic digital surface textures during the design process.

As part of the sponsorship programme, Dassault Systèmes will give lectures and demonstrations on how to make best use of the software.

Professor Dale Harrow, dean of the School of Design and head of the Vehicle Design programme said, “Dassault Systèmes Computer Aided

52 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

The twoyear Master of Arts programme is the world’s only established and dedicated postgraduate course in vehicle design

Threesault y Das ted b hnology a v dimensional ti p ve tec nts ca Studemes creati Interactive Systè Application (CATIA) is a significant addition to our teaching toolset. Its use at the Royal College of Art (RCA) delivers an exciting opportunity to provide young creative minds with advanced, stimulating and highly relevant technology that they are likely to encounter when they go into industry.”

Stephen Chadwick, managing director of Dassault Systèmes EuroNorth said: “This course is known worldwide for the quality of its graduates and I am delighted that RCA students are now able to develop their skills, broaden their capabilities and innovate vehicle design with CATIA. “We are proud to support RCA students using CATIA and we hope to continue supporting them beyond graduation and through their careers as world leading vehicle designers.”

Snapshots

WORKFORCE & SKILLS

Tackling the A big hand for skills deficit UK’s two millionth apprenticeship In December, Business Secretary Dr Vince Cable announced the launch of the National College of Advanced Manufacturing during his visit to the University of Sheffield Advanced Manufacturing Research Centre.

T

he institution is set to develop the skilled workforce of tomorrow, equipping it with the knowledge and understanding of emerging technologies, to enable UK industry to compete in global markets.

The Government intends to work with the High Value Manufacturing Catapult and the EEF, to establish a National College for Advanced Manufacturing, identifying the needs of industry and develop training provision to meet those needs. The two bodies will agree the detailed organisational structure of the college based on autonomous institutions working together under the umbrella of a common National College offer and quality framework.

The college is part of a new wave of employerled National Colleges to help the UK develop world-class practical skills, with other colleges focusing on advanced manufacturing, digital skills, nuclear, high speed rail, onshore oil & gas, and wind energy.

Up to £80m of capital funding will be matched by employers over 2015-16 and 2016-17, with a potential total investment of £160m by 2017.

The National College will be established as a network of hubs that link innovation to training provision.

Business Secretary Vince Cable said: “Economic growth is underpinned by technological innovation, a strong manufacturing sector and scientific excellence.

“The National Colleges will function on a par with our most prestigious universities, delivering training that matches the best in the world. They will help build a strong, balanced economy that delivers opportunities for everyone across all regions in the UK.”

In December, Paige McConville, Advanced Apprentice in Engineering Manufacture from Oxford, was announced as the UK’s two millionth apprentice.

T

o mark the occasion, Business Secretary Dr Vince Cable met 16-yearold McConville at her employers’ FMB Oxford.

The youngster began her stint with the hightech engineering firm in August 2014.

McConville took the Business Secretary on a tour of FMB Oxford, explaining how her apprenticeship with the firm is giving her the skills she needs to begin her career as an engineer.

The Business Secretary also visited Abingdon and Witney College where Paige and her fellow apprentices study.

Cable said: “Reaching the two millionth apprenticeship is testament to this Government’s commitment to apprenticeships.

“This isn’t just about numbers. From space engineering, to TV production, to legal services, apprenticeships are the ticket to a great job and a route employers trust to access the skills they need.

Skills Minister Nick Boles said: “Apprenticeships have a vital role to play in

McConville took the Business Secretary on a tour of FMB Oxford, explaining how her apprenticeship with the firm is giving her the skills she needs to begin her career as an engineer supporting the long term economic plan.

“Thanks to our reforms and through the support of employers like FMB Oxford, apprenticeships are a solid route into some of the country’s Bus with iness Se most 16-y two m cretary ear-o illion V prestigious ld Pa th ap ince C pren able ige M c professions.

Con tice, ville “Two million is just the start – I want to see more employers making apprentices a key part of their strategies for growth.

“The Business Secretary also announced 22 new employer-designed apprenticeships in professions ranging from data analysis to civil engineering to health and social care.

“The employers, who are part of the government’s trailblazer scheme, design apprenticeships to meet the needs of their industries making sure people have the right skills to get on in the world of work.”

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 53

Stuart Berry

Employee of the Month February 2015 Stuart Berry

New Tooling Introduction Team Leader at C Brandauer & Co Ltd

EMPLOYEE OF THE MONTH

What is your role and what are the main responsibilities?

My job at Brandauer is new tooling introduction team leader. It involves taking full ownership of the practical manufacture of tooling for all new projects. This means I’m the first point of contact for the team, looking after manpower, material and resource management to start with, followed by prioritising workload, implementing monitoring systems and ensuring we hit Right First Time (RFT) scores. It’s a varied role and you need to be on top of your game, utilising all the manufacturing skills you’ve picked up along the way, such as press allocation, 5S, and cost control. There is also a focus on design for manufacture to ensure we achieve significant set-up time reductions.

What are the key technical skills you use?

CV in brief Stuart Berry Age: 28 Education: Dudley College - ONC Manufacturing Engineering - 2006 | Advanced Modern Apprenticeship, NVQ Level 3 in CNC Machining, Key Skills Level 2 - 2007 | Sutton Coldfield College - HNC Manufacturing Engineering – 2008 | Apprentice Mentoring Course – 2011 | Birmingham City University - Management of Manufacturing Systems B.Eng Hons – 2014 Career to date: Joined MG Rover Group Limited as Engineering Technician Apprentice in September 2004 until April 2005. Joined C Brandauer & Co Ltd in 2005 initially as Apprentice Tool Maker, then as Tool Maker Machinist, before becoming New Product Development Engineer, and finally became New Tooling Introduction Team Leader in 2014 Hobbies and interests: A keen dinghy sailor competing regionally and nationally in a GP14, teaching all ages to sail at local clubs, windsurfing and kayaking, and spending time with the family

54 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

One of my favourite aspects of the job is that I work cross functionally between different departments within the business, meaning pretty much every day is different. For example, I could be working on tool design Monday then follow this through to how it actually works with the toolmakers, ironing out any issues and getting a better understanding of the challenges they face in turning my concept into reality. Tuesday and Wednesday could easily see me completing CNC programming and operation and putting my growing CAD/CAM skills to good use to solve a complex design problem that the client has brought to us. Finally, I’m also one of a select number of people in the business

that has been trained to work in our world class Wire EDM cell, an £800,000 investment in two GF Agie Charmilles machines.

What do you consider to be your biggest personal success at the company so far?

There have been many personal successes during my 10 years at Brandauer, both academically and on the shop floor. Recently I have completed a BEng Hons degree in the management of manufacturing systems, securing a First and one of the highest marks in my cohort in the process. On a work front, I’m very proud of the innovative work I have completed around tool materials to improve production runs and the role I played in the implementation of our world class Wire EDM (WEDM) cell.

The latter is capable of one micron tolerances.

What do you think is the best way to get more young people interested in manufacturing?

I feel the best way to get young people interested in manufacturing is to engage with them as early as possible, to get them interested in the way things work and engineering principles.

Once they are engaged in engineering it is all about keeping them interested. This does not mean sidelining them into the same task for years on end.

Instead, give them opportunities to be involved with the most innovative engineering processes and technologies.

FURTHER INFO: Do you have an exceptional staff member we should feature as Employee of the Month? Let us know at b.fitzsimons@ hennikgroup.com

The National Manufacturing Debate .....now in its 6th year 19 and 20 May 2015 Vincent Building Auditorium, Cranfield University

Theme: UK Reshoring Capability This is the opportunity for manufacturing professionals to discuss and debate current challenges in the industry and to network with colleagues from different sectors. Cranfield will publish a white paper with facts on manufacturing reshoring on the day.

19 May

Visit the National Apprenticeship Competition, take part in the Manufacturing Alumni conference and the tours of key manufacturing facilities.

20 May National Manufacturing Debate 0915 – 1300 Keynote speakers from the manufacturing sector To be announced soon

1300 – 1400

Buffet Lunch

1400 – 1630

The Debate How do we develop the capability for effective reshoring to the UK?

The debate will consist of a panel of influential business professionals with knowledge of the reshoring capability for the UK. Media Partner:

Register now for this free event: www.national-manufacturing-debate.org.uk

I

Schooling business

Dr Gordon Mizner, Chief Executive of the Engineering Development Trust argues that employer/ education linking programmes provide a crucial opportunity for businesses which are frequently missed by small and medium manufacturers.

t is a strange phenomenon that the engineering industry is overcome with problems in acquiring the skills they need from school leavers and yet manufacturing companies can be very slow in taking up the opportunities to engage with schools in helping inspire able students into engineering and science careers.

The benefits for companies

The Engineering Education Scheme (EES) is 30 years old and regularly engages with over 1,200 sixth form students each year to work on real company projects. Indeed over 30,000 students have taken part in EES since its inception. Is this a worthwhile activity for these companies? Let’s hear it from the companies themselves.

Steve Birnie, head of engineering at BorgWarner Turbo comments: “BorgWarner Turbo Systems are strongly committed to EES as we recognise how vital it is for students thinking about a career in industry to gain insights by working on a real project in a real commercial environment. “It is really exciting to see young people discovering the same

The same logic can work for large and small companies and the impact of programmes like EES on the students is well proven

56 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Engineering Education Scheme

enthusiasm for science and engineering that we have at BorgWarner Turbo Systems and of course we have the opportunity to get to know some really talented young scientists and engineers which is a positive benefit for the company’s talent pipeline.”

Tom Hammond, graduate engineer at Siemens who mentored students on an EES project remarked: “The project for me personally was of huge benefit as the mentoring aspect contributes towards my engineering chartership.

“For Siemens Industry the project outcome was not only a test rig which saves time and money internationally but also the potential for more test rigs to be produced. It is important for Siemens to engage with the EES to help to inspire the next generation of engineers through experience in real world engineering challenges and projects.”

Luke Bridges, systems engineer for Thales UK and EES Project Link said: “It is easy to assume that the projects given to EES teams are in some ways not ‘real’ commercial projects but this would be wrong. EES enables a company to dedicate relatively inexpensive resource to what may well be a niggly, and time consuming project which otherwise could be very expensive to undertake.

“As my own experience demonstrates, EES allows Thales to develop relationships with potential future employees. We will provide references and sometimes part time work for students that show an interest and ongoing contact can provide benefits that work for both sides.”

The benefits for students

The same logic can work for large and small companies and the impact of programmes like EES on the students is well proven.

A recent survey of former EES students shows just how beneficial the programme can be with 91.2% of students undertaking the programme then going on to study science, technology, engineering or maths (STEM) subjects at university. 77% of EES students’ first jobs were in engineering or technology companies.

It is often said that if the UK breaks the secret of encouraging girls into engineering the skills gap problem would be overcome. On this front EES has an even better story to tell. Of female former

WORKFORCE & SKILLS

EES students, a big 84% go into engineering or technology jobs. At present a third of EES participants are female.

We could do even better if visionary companies worked with us to help inspire more girls into industry.

Projects to suit the company

The options are widely varied on the sort of projects that are undertaken. One team from Ripon Grammar School found themselves involved in the research and development of a method for dispensing the decorative materials onto cakes through the nozzle in a way which attempts to mimic the method used by human operators with piping bags.

Another team from Bournside School in Cheltenham were designing a man-worn health monitoring system for a professional soldier.

Another team from Luton Sixth Form College were asked to design and create a radio frequency detector with the ability to detect the direction of the source of the frequency.

The output was then planned to be used by an unmanned vehicle to deploy supplies to the area where the beacon is located. The detector had to be able to filter out unwanted frequencies such as those from other beacons.

Given the state of available skills in UK industry, the limit on the number of students taking part in EES each year is not the students’ willingness to take part, it is the availability of companies that are sufficiently visionary to

A recent survey of former EES students shows just how beneficial the programme can be with 91.2% of students undertaking the programme then going on to study science, technology, engineering or maths (STEM) subjects at university see the importance of and opportunities involved in engaging with a scheme like EES. The future improvement of the UK manufacturing skills base will need a step change in the level of engagement of manufacturing companies with education.

FURTHER INFO: For more information about how to engage with the Engineering Education Scheme go to www.etrust. org.uk/engineering-education-scheme or call 01707 871504.

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 57

Positioning for growth series

Ready, asset,

I

Asset Finance has been gaining in popularity as a means of funding investment. Neil Lloyd of Lombard, RBS’ asset financing arm, explains why – and highlights that businesses should hurry to make use of their Annual Investment Allowance before it disappears.

n the six years since the banking crisis, we have seen a shift in the way businesses regard and access finance. Overdrafts are no longer an automatic choice and while bank loans remain widespread some of their characteristics make them less popular than they once were – not least, the fact that they are typically secured against property, using up valuable collateral. What is a business to do if it wants to invest in production equipment or other bigticket hardware? The answer may well be in asset finance: perhaps better known as hire purchase or leasing, it is secured on the asset itself and thus frees up security, so it is hardly surprising that it is becoming more popular.

“We have seen phenomenal growth in asset finance over the past couple of years – around 17 per cent,” says Neil Lloyd, Head of Sales Development, Lombard. “The awareness of the product is better than it was and greater demand has meant that many funders have returned to the marketplace.”

58 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Qualifying equipment covers most assets purchased for use by businesses, including: Office furniture and equipment Vans, lorries and equipment Building fixtures e.g. shop fittings, kitchen or bathroom fittings Business machines e.g. printing press, lathes, tooling machines Computer hardware and qualifying software Computerised/computer aided machinery including robotic machines Wind turbines and fibre optic cabling Security may be required. Product fees may apply.

Increases across the board

The latest figures from the Finance & Leasing Association (FLA) show 10% growth in asset finance new business to period October 2014, compared with the year before. Most of that was at the lower end; new borrowing in projects of up to £20 million increased by no less than 21 per cent. Individual sectors grew even more. IT equipment finance rose 52 per cent and the commercial vehicle sector increased by 28%, for example.

Asset-financed purchases such as plant and equipment totalled over £5 billion in the 12 months to October 2014, which was 17 per cent up on the year before – and it could be accelerating, as financing in the month of October 2014 alone was 28 per cent up on 2013.

“We are looking at another 10 per cent growth next year,” says Lloyd. Oxford Economics has forecast continuing strong investment in 2015 in the manufacturing sector. Some of the dramatic growth has been a process of UK manufacturing businesses replacing dated assets. The recovery is now becoming very evident and has been multi-faceted.

There are a number of factors driving this surge in new demand; awareness of asset lending is now more widespread; more lenders have come into the market; and the product itself has improved. Further more, thanks to improved flexibility and closer connection to business realities, credit policies have changed and funding over longer periods is now possible. Lombard itself has been involved in raising awareness and has formed partnerships with EEF and the Institute of Mechanical Engineers to highlight to manufacturers the alternative funding methods available to them and also to lobby for investment incentives such as the Annual Investment Allowance (AIA).

Annual Investment Allowance

It is important that the value of asset finance in claiming AIA is more widely understood. JCB Finance – a joint venture between the plant manufacturer and Lombard – undertook a survey that found awareness to be very low. This was further supported by research from Lombard which found that only around 20 per cent of SMEs had used their AIA, which is a very low threshold.

“It’s not always easy to keep on top of all the incentives available to businesses,” Lloyd explains. “And sometimes, the

Assett Finance

The time is now

SRD Engineering SRD Engineering, of Bicester, Oxfordshire, is a family-owned high-quality precision engineering company with customers in the aerospace, electronics and motorsport industries, including six Formula 1 teams. It has 40 employees.

The size of SRD’s existing premises was limiting the firm’s ability to grow.

The company decided to move to a larger site in the town, which would enable it to expand capacity and meet extra demand. It also wanted to invest in new manufacturing equipment and through a hire purchase agreement with Lombard it acquired six new CNC lathes, which enabled it to increase its production capacity and the speed with which its products can be manufactured.

This means that the business will be able to focus on continuing growth while staying at the forefront of precision engineering technology – a crucial factor in succeeding in the sector. route to get hold of finance – the Regional Growth Fund, for example – is not always clear. People might not be aware of what they need to do and therefore Lombard works closely with its customers to highlight such incentives that may be beneficial to customers.” For example, it may come as a surprise to learn that the AIA covers the overwhelming majority – around 90 per cent – of deals with which Lombard is involved. AIA in the form of hire purchase – “intent of ownership” offers businesses of all sizes 100% capital allowance on qualifying capital expenditure in the year of purchase. Sole traders and partnerships (but not mixed personal/corporate partnerships) qualify as well.

The treatment of leasing is a bit different. As it is the leasing company that claims the capital allowance, which it passes on to the borrowing business as lower rental payments. This could be a more appropriate route for businesses that do not have large taxable profits.

Both methods of funding have different accounting implications and Lombard would recommend that businesses ask for guidance from their accountant or an independent financial adviser.

In the March 2014 Budget Statement, the Chancellor announced that the AIA would be increased £250,000 to £500,000 a year from April 2014 – but only until January 1 2016. What will happen after that date is not yet clear but it may revert back to £25,000 – just 1/20th of the current rate. Which means that it could be a good idea for businesses considering purchasing capital equipment to set the wheels in motion promptly, as it takes a while for deals like these to be processed and concluded.

“Lead time is typically four to six months,” Lloyd says, and adds that tax year should also be taken into account.

Assets that quality range from lathes and CNC machines to production lines, as well as office furniture to wind turbines see box-out/panel).

The current increased level of AIA can enable businesses to transform their productive resources. It would be a shame to waste the opportunity.

RBS and Lombard work with manufacturers in all sectors and are committed to helping UK businesses position for longterm growth.

Lombard

Annual Investment Allowance How it could help your business grow How much your business can recoup on your investment through tax savings

If your qualifying spend is at the rate of

£550 ,000 per annum in

Avalon Plastics, founded in 2003, employs 120 people at its main office in Glastonbury and an additional site in South Wales.

It specialises in plastic injection moulding, from designing and tooling to final products, which range from car baby seats to fragrance dispensing systems.

Avalon used asset finance to purchase 11 new robotic machines, which are capable of running 24 hours a day, seven days a week, in an automated process. Lombard provided funding for the machines by hire purchase, with an initial four purchased in summer 2014. Seven more were up and running by the end of the year.

The consequent increase in production capacity contributed to a turnover of £14m in 2014, up 15 per cent compared with the previous year, as well as the creation of 15 new jobs.

per annum gets

qualifying period, Apr 2014 Dec 2015

Pro rata for short periods, long periods, or periods which span the operative dates

Who can claim?

Your remaining

50,000 8taxor18 % relief £

per annum gets

Any business except for mixed partnerships and trustees

Security may be required. Product fees may apply.

Avalon Plastics

500,000 100 % tax relief

£

What does it mean for you?

£500,000

on corporation tax/income tax per annum = maximum Annual Investment Allowance deduction from taxable profits from April 2014 Pro rata for short periods, long periods, or periods which span the operative dates

Save £

1

in taxable profit

for

for every

1

£ spent up to a maximum of £500,000

further information Neil Lloyd Head of Sales Development Lombard, Commercial & Private Banking, The Royal Bank of Scotland T: 07802 488320 E: nlloyd@lombard.co.uk

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 59

Lloyds Bank

Finance & Professional Services

David Atkinson, Head of SME manufacturing at Lloyds Bank Commercial Banking discusses the UK’s automotive sector’s success and its future challenges.

I

t’s no secret that UK manufacturing has had to transform over the past decade, rise to the challenge of intense international competition and embrace technology. Nowhere has the industry’s success in charting this new course been more apparent than in the automotive sector.

Britain remains one of the leading players in automotive manufacturing. Our nation boasts a complex supply chain of high value engineering businesses which are increasingly attracting international attention. Now, according to Lloyds Bank’s latest report into the sector which surveyed more than 100 automotive manufacturers across England and Wales, ‘Fuelling Growth’, automotive manufacturing is set to lead from the front in creating jobs in the economy.

The report estimates that close to 50,000 jobs will be created by 2017 as the industry capitalises

60 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

on the country’s automotive expertise and infrastructure, which also encourages manufacturing to be brought back to the UK. Encouragingly, over 70% of the sector in England and Wales plans to move part of their production capacity onshore in the next two years, while over three quarters of respondents expect to grow up to 25% over the same time frame.

It is also clear from our research that automotive manufacturers are looking to the future with

confidence; many having earmarked funds to reinvest into their businesses.

Replenishing R&D budgets to maintain Britain’s competitive edge in the global market, particularly in the development of electric and low emission technology, will be at the top of their agenda, while onshoring is a trend that clearly has further to go. Meanwhile, entering new markets was a priority for more than two thirds of the sector, further evidence of forward-looking management teams.

There is no denying that the sector faces some challenges. Most respondents feel the global economy is the greatest concern for the automotive sector. However, the findings of our research are testimony to the hard work of the industry, which has emerged from tough economic times in remarkably good condition, putting many businesses in a strong position to overcome hurdles in the future.

With the support of our sector specialists, we can provide the banking facilities that will help manufacturers across the supply chain, to navigate the challenges and opportunities that lie ahead.

Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it.

All lending is subject to a satisfactory credit assessment.

There is no denying that the industry faces some challenges

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278.

We subscribe to The Lending Code; copies of the Code can be obtained from www.lendingstandardsboard.org.uk.

How can you deal with the skills shortage?

How can you improve quality?

How can you grow your business?

How can you increase your company’s competitiveness?

How can you give your staff greater job satisfaction?

For more information contact Henry Anson, Managing Director, The Manufacturer E: h.anson@hennikgroup.com T: +44 (0)20 7401 6033

How can you decrease wastage in production?

Automation can provide the answer to all these questions and many more...

bit.ly/AABautomation The Automation Advisory Board is proudly supported by:

2014 saw a number of major investments into the UK offshore wind sector, a sign that the marketplace is actually starting to realise its potential. GROW:OffshoreWind has spent the last 12 months helping the supply chain take advantage of the multibillion pound opportunity…

M

anufacturers looking to take advantage of the growth in the offshore wind market have received £7m of business support and capital funding.

Bosses at the GROW:OffshoreWind service made the announcement at a supplier event to promote the £1.5bn Dudgeon Wind Farm project in Norfolk and immediately pointed to further investment in Hornsea as a sign that the sector is finally maturing.

More than 900 companies have benefited from the assistance to date, which has helped firms bring new innovations to market, purchase state-

of-the-art machinery, explore crucial R&D and increase their supply competitiveness and capability.

The grants have also been used to facilitate relocation to new purposebuilt premises, an important feature for suppliers looking to increase capacity and manufacture larger components than they’re normally used to.

“When we launched at the end of 2013 we had the single aim of getting more manufacturers and technology providers in a position where they could effectively supply into offshore wind,” explained Dominic Brown, head of GROW:OffshoreWind.

“We feel we are well on the way to achieving this, providing strategic advice and access to funding for over 900 companies, ranging from steel fabricators and composite specialists, to blade tip innovators and toughened glass specialists.”

He continued: “Early estimates suggest that the £7m we have allocated will safeguard in excess of

62 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

1150 jobs and, importantly, could create nearly 2500 new ones.”

GROW:OffshoreWind, a Regional Growth Fund programme, is delivered by Grant Thornton and partners the Manufacturing Advisory Service (MAS), Renewable UK and the University of Sheffield.

Working closely with the Government and industry leaders, the service has been instrumental in raising the profile of offshore wind and how suppliers can tap into £bn of opportunities slowly coming to fruition in and around the UK’s coasts.

Eight dedicated GROW specialists have been working with companies on the ground, whilst senior officials have been cultivating relationships with Tier 1s and the big contractors responsible for delivering the wind farms.

Dominic continued: “Another focus has been around building links with the organisations responsible for developing the supply chains.

“We are starting to see a noticeable change in Developers and Tier 1s engaging with SMEs. There seems to be a genuine commitment for local supply and, as a result, we are now putting on events that are bringing suppliers in direct contact with Tier 1s (A2Sea, Carillion and Sif Group for example) and operators, such as Statoil and Siemens.

“It has taken a while for the potential to turn into reality and suppliers need to work hard to prove themselves. However, with new developments planned and recent investment being seen in East Yorkshire and off the Norfolk Coast, the appetite to be involved has definitely grown.”

FURTHER INFO: For more information visit www.growoffshorewind.com or follow @grow_osw on twitter.

Blade runner

B

lade Dynamics has been awarded one of the largest ever grants from the GROW:OffshoreWind service to help it develop a new solution to improve wind turbine performance.

The Southampton-based firm has secured a £500,000 grant under the Process Technology Innovation Fund to help it bring its ‘Advanced Blade Tip’ development project to fruition.

Blade Dynamics has created a new and highly innovative ‘Advanced Blade Tip’, which improves the critical outer third of a wind turbine blade.

This high performance tip is designed to integrate, creating a ‘hybrid blade’ that upgrades performance whilst using existing manufacturing infrastructure.

The ‘tip’ features built-in leading edge erosion protection, has a highly accurate aerodynamic profile to enhance energy generation, is lightweight

Grant Thornton and GROW support

Finance & Professional Services

looks at how two small manufacturers have tapped into GROW support to boost their ability to supply into offshore wind.

North West pioneers technology breakthrough

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leading Lancashire subsea connector specialist has been awarded £130,000 of funding to help pioneer a new offshore wind breakthrough. First Subsea has secured the Process Technology Innovation award from the Government’s GROW:OffshoreWind service and will now be able to develop a monopile interface connector and hang off cable connector for wind farms and top tension mooring connector for floating wind turbines.

John Shaw, managing director, commented: “As the offshore wind industry strives to reduce turbine deployment costs, our connector is a major breakthrough in facilitating quicker and safer installations.”

to reduce turbine loads and to allow blades to be extended in length.

The Advanced Blade Tip, which also features an innovative lightning protection system, enhances both the performance of offshore wind turbines, increasing Annual Energy Production (AEP), and reduces costs incurred through expensive downtime due to blade deterioration and the current need for frequent maintenance.

The project will refine, demonstrate and test the manufacturing technologies used in the tip solution, as well as optimise the design of the interface between the tip and the rest of the blade.

Theo Botha, Blade Dynamics cofounder, said: “This is an exciting new technology development that can substantially reduce the long term cost of energy from offshore wind turbines

He continued: “The GROW: OffshoreWind award will allow us to develop our engineering and production teams and produce trial connectors to undertake full scale testing in collaboration with the offshore wind industry. “It places the UK at the forefront of this type of technology and gives us a great opportunity to grow the business.”

The most labour intensive and timeconsuming element of installing power cable into an Offshore Wind monopile is its connection and termination.

First Subsea’s patented connection systems are designed to streamline the cable installation process with its combination of monopile interface connector (MIC) and hang off cable connector (HOC) for both traditional and

and the company is delighted to be supported by GROW:OffshoreWind in this work.

“The project is a great example of funding being provided for technologies that can have a substantial positive impact on the British economy and environment by nurturing sustainable, knowledge-based, domestic manufacturing in the vitally important offshore wind energy sector.

“The outer portion of a blade produces most of the energy and the technology allows these high value blade tips to be exported from the UK and deployed on offshore wind turbines globally as well as in the domestic market.”

W: bladedynamics.com T: @bladedynamics

pre-stripped cable. The MIC secures the cable’s monopile connection, while the HOC holds the cable in position on the hang-off deck ready for connection.

In addition to significant installation time savings offshore, they will provide robust and foolproof connections that can be readily adapted for a range of offshore wind turbines and cable protection systems.

W: www.firstsubsea.com T: @firstsubsea

(l-r) Richard Ousey, Dominic Brown (both GROW:OffshoreWind) with Theo Botha (Blade Dynamics)

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 63

The next generation of prosthetics

Manufacturing Technologies

Engineering the next generation of prosthetic limbs Jonny Williamson discusses the design and manufacture of next generation lower limb prosthetics with the recently announced Royal Academy of Engineering research fellow, Dr Alex Dickinson.

E

vents such as the Paralympics and the recent Invictus Games have offered a fantastic opportunity to raise society’s awareness of people living with disabilities, however for amputees, there remain a number of fundamental challenges that need to be solved in regards to the design and manufacture of the prosthetic limbs – human interface.

That’s the viewpoint of University of Southampton’s Dr Alex Dickinson, who is working in Southampton’s Bioengineering Science Research Group to apply his past research and analysis of orthopaedic implants to external prosthetics.

A prosthetic limb is produced from standard components and attached to the body using a personalised socket. According to Dickinson, the predominant issue with today’s prosthetic limbs stems from the accepted way measurements of the residual limb – the cut bones and the reconstructed soft tissue structures created during the amputation surgery – are captured, and how that translates to the resulting prosthetic socket.

An amputee will return to their prosthetist an average of nine times within the first year, he notes, in order to arrive at a socket fit that’s both comfortable and allows them to begin performing some of the activities they enjoyed previously.

“Each patient requires a bespoke socket and if it is uncomfortable, they may abandon even the most advanced prosthetic limb, and they won’t be able to achieve their rehabilitation goals and return to a level of function that really should be possible in 2015.”

Prosthetists are highly trained and understand how the soft tissues are likely to respond to differing load factors, continues Dickinson, but their job is extremely challenging because the shape of the residual limb varies throughout a single day, as a result of temperature and hydration, and

64 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

often shrinks in the months following amputation, because of muscle atrophy. Current measuring methods (plaster molds, calipers and standardtension tape measure) contact the residual limb and may distort its shape, further complicating measurement.

What Dickinson proposes is to utilise modern non-contact shape measurement technologies and biomechanical analysis to create accurate, dynamic models of residual limb-socket interaction in lower limb amputees to better predict how the residual tissues deform and respond to loads arising from various activities.

This will enable surgical prosthetic treatments to be better planned and specific to the individual, and speed up and reduce the discomfort of rehabilitation.

With inter-patient variability so prevalent, another challenge facing Dickinson and his team is to arrive at a method that’s likely to work for the largest group of individuals.

“We’ve been working with the Disablement Services Centre in Portsmouth [a prosthetics fitting and manufacturing service] and we have

ethical approval with them to evaluate the shape of the residual limbs in its amputee cohort. What we’ve produced over the past year is a software package that takes our more accurate residual limb scans and performs a series of automated tests to validate them for reliability and repeatability.

“The next step is to firstly, offer this measurement technology to prosthetists so that they can monitor patients over a longer period of time and assess how their residual limb changes; and secondly, compare the residual limb shapes across a whole range of patients and their sockets, and work with prosthetists and physiotherapists to see how well those patients progress through rehabilitation.”

In this way, Dickinson wants to see whether trends can be identified in successful rehabilitation and trends where amputation doesn’t go so well, and assess if there’s a way to inform prosthetists’ practice for the better.

“All of our preliminary work and results so far are based on residual limb casts from the Portsmouth patient group, which we hope to present next year at the world congress of the International Society for Prosthetics and Orthotics [the global governing organisation for prosthetists and orthotists] and then to start working with patients themselves.

“At the end of the five year Royal Academy of Engineering research fellowship, we want to be in a position where we can provide advanced engineering tools to support the excellent work the prosthetics companies and the prosthetists do to help lower limb amputees, and ultimately make a difference to the amputees, clinics and UK industry.”

Manufacturing Services Thought Leadership Network [MSTLN]

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Smart world

scratches the surface of the Internet of Things and how it is set to revolutionise the way we live our lives.

A

s 2014 drew to a close, the UK Government published the paper The Internet of Things: making the most of the second digital revolution, written by its chief scientific adviser, Sir Mark Walport.

It set out Government recommendations to realise David Cameron’s ambition of making the UK “the most digital nation in the G8,” a goal which Cameron says will only be achieved by “making the very best of today’s digital technology”.

In the report, the Prime Minister refers to the Internet of Things (IoT) – the employment of technologies that will allow almost any everyday object to connect and communicate with multiple other objects, people or software via the Internet – as a “transformative development” that has the potential to change all of our lives.

These technologies could bolster productivity, make us healthier, improve transport efficiency, reduce energy requirements, advance agriculture and

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Manufacturing Technologies

even make our homes more comfortable and secure.

Imagine an electricity meter that advises its owner on energy use; vehicles that automatically avoid congestion; health monitors that keep an eye on vital signs; vending machines that know which products need replenishing; and buildings that gather data on how its space is used as a means of pre-empting behaviour and accommodating it.

With the proliferation and combination of broadband and mobile devices helping pave the way to a world offering almost total connectivity, several sectors have already pioneered the implementation of IoT in regards to public infrastructure, including many aspects of transport and public works.

Smart buildings

Advances in data gathering and analytics are creating a wide variety of possibilities for smart building technology. Building management systems (BMS), for example, now have the ability to monitor, record and anticipate occupants’ preferences for light, temperature, entertainment and other services.

Energy and gas supplier, EDF Energy plans to install smart metres into 100% of the homes and small businesses it provides energy to within the next five years. The technology will include gas

and electricity meters, an in-house display and a (non-Internet) connected communications hub that allows customers to view data on other devices and link with the supplier’s systems.

Smart cities

Angus Foreman, CTO for Microsoft Services, recently told The Manufacturer about the GPS-enabled navigation headset, Cities Unlocked. The result of a collaboration between Microsoft, the Future Cities Catapult and Guide Dogs (a UK charity for the blind and partially sighted). The headset provides directions and live transport information to help visually impaired individuals navigate urban environments.

Described as “painting a picture of the world through sound”, the

[The IoT] could bolster productivity, make us healthier, improve transport efficiency, reduce energy requirements, advance agriculture and even make our homes more comfortable and secure

Enthuse young people to take up vital careers in engineering With not enough young people taking Science, Technology, Engineering and Mathematics (STEM) at further education, many UK companies are facing a skills shortage.

Independent, educational charity, The Smallpeice Trust is passionate about closing this skills gap and enthusing the next generation of engineers. Last year, 17,495 students participated in our university-based residential courses, in-school STEM Days and Clubs. Encouragingly, almost 50% of our students were girls.

Working in partnership with some of industry’s leading organisations, we offer students an engaging, hands-on introduction to the rewarding careers available to them.

A corporate partnership offers a range of benefits including the chance to:

• Build a future talent pipeline and help you to achieve your HR objectives • Get employees involved to boost job satisfaction, motivation and skill development • Enhance your brand and profile amongst enthusiastic girls and boys, their families and their communities • Bolster your corporate social responsibility agenda • Maximise potential for PR and marketing opportunities • Offset charitable giving against company corporation tax From sponsoring STEM Days and Clubs, to mini competitions and residential courses, there are many ways in which your company can get involved with The Smallpeice Trust.

Smallpeice corporate supporters include:

“At Babcock, we are very keen to encourage young people towards a career in engineering and the courses run by The Smallpeice Trust are a fantastic way of demonstrating the variety of options open to them as they start to think about their career choices. The wide choice of courses offered by The Trust gives students the opportunity to broaden their horizons outside of the normal curriculum.”

Rosemary Prout, Graduate Training Manager Marine and Technology Division, Babcock International Group To find out more about the benefits of being a Smallpeice Partner, contact our Chief Executive, Dr. Kevin P Stenson on 07899 663 280 or email kevins@smallpeicetrust.org.uk.

ARM, Babcock, BAE Systems, EDF Energy, Google, National Grid, National Nuclear Laboratory, Senergy, Southern Water, Ultra Electronics Controls… and many more.

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Big things happen with The Smallpeice Trust

It’s a smart world

For industry, exploiting advances in electronic intelligence make it possible to greatly enhance the manufacturing process

technology aims to broaden the horizons of visually impaired people with Jenny Cook, head of strategy and research at Guide Dogs, summarising true independence as being about “a change in perception, to allow somebody to say on this day I can go beyond what I know.”

Funded by the Future Cities Catapult, a global centre of excellence on urban innovation, Cities Unlocked embodies the initial phase of a much larger research, which seeks to examine the potential of IoT being interwoven into our future environments.

Smart transport

Another brainchild of the Future Cities Catapult, and something that has the potential to revolutionise the manufacturing supply chain, is the automation of transportation processes in certain environments. In January, Honda launched the world’s first predictive cruise control system – known as Intelligent Adaptive Cruise Control (i-ACC) – capable of anticipating and responding automatically to other vehicles behaviour.

According to Honda, i-ACC utilised a camera and radar to sense the position of other vehicles on the road, and applies an algorithm to calculate the likelihood of vehicles in other lanes cutting-in, enabling the equipped vehicles to react “quickly, safely and comfortably”.

IoT also offers opportunities to automate freight carriers, such as Mercedes-Benz’s unveiling of its Future

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Manufacturing Technologies

Truck 2025, a self-driving truck that the manufacturer claims could hit motorways within the next decade.

Pitched as an answer to increasing traffic, inadequate infrastructure, increasing costs and a shortage of drivers, Mercedes says the vehicle will connect to existing assistance systems with enhanced sensors to its Highway Pilot systems, similar to the autopilot function aircraft make use of.

Smart health

The potential for IoT to deliver benefits in healthcare is vast and a wide selection of projects are currently underway. These technologies could amalgamate the delivery of care, improve clinical outcomes and yield considerable cost efficiencies for the increasingly stretched NHS. Telehealth, the delivery of healthrelated services and information via telecommunications technologies, ranges from something as simple as two health professionals discussing a patient via telephone, to procedures as sophisticated as conducting robotic surgery between facilities a thousand miles apart.

According to the NHS, telecare and telehealth services can be of particular benefit to those living with long-term conditions, providing you and your relatives with “peace of mind that you’re safe in your own home and that your health is stable.”

Telehealth equipment which monitor data such as blood pressure, blood glucose levels or weight can not only allow living independently for longer, but can reduce a patient’s number of GP and unplanned hospital visits, helping to alleviate pressure placed on health providers.

Smart reality

Today across almost all of the developed world, the manufacturing landscape is rapidly evolving. For industry, capitalising on advances in electronic intelligence make it possible to greatly enhance the manufacturing process. Equipment able to measure and modify processes, alongside factories able to communicate with each other over a wide area, provides greater efficiency and flexibility while keeping production costs low and improving quality, reliability, consistency and safety.

Though there is rising a number of cases where the IoT has been

successfully embraced, manufacturers on a much broader scale have so far been largely reticent about adopting the technological advances and opportunities it offers.

According to a recent study by global technology consultants Accenture, successfully industrialising the IoT could help the UK increase GDP by upwards of £354bn by 2030.

However the report also reveals that these gains are at risk of not being realised. To date, of the 1,400 global business leaders surveyed, only seven percent have developed a comprehensive IoT strategy with investments to match.

Successfully industrialising the IoT could help the UK increase GDP by upwards of £354bn by 2030 Another factor potentially holding back a greater adoption of IoT could be, on a personal level, society’s response to seeing its personal data and activities being tracked and analysed in far greater detail; and, on an industrial level, issues surrounding security and the threat that may represent to a businesses’ intellectual property.

The lack of industry’s commitment to the IoT may also be due to costprohibitions or the difficulty of applying it to generate new revenue streams, with companies focusing more on using IoT to make efficiency gains, raise employee productivity and reduce operational expenses, suggests Accenture’s chief technology officer, Paul Daugherty.

“The [IoT] is here today, helping to improve productivity and reduce costs.

But its full economic potential will only be achieved if companies move beyond using digital technology to make efficiency gains alone and unlock the value of data to create new markets and revenue streams.

“That means radically changing how they do business, working with competitors, forming partnerships with other industries, redesigning organisational structures and investing in new skills and talents.”

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Autodesk

Manufacturing Technologies

Autodesk Fusion 360, a cloud-based tool that combines 3D industrial and mechanical design, collaboration, and machining in a single package (Image - Business Wire)

A vision of the future through Autodesk’s eyes While at AU2014, Jonny Williamson caught up with a number of senior Autodesk executives to uncover the trends the software company predicts will disrupt the manufacturing landscape.

‘‘N

ot since the Industrial Revolution has there been such a broad and radical rethinking of the way that we make things.” That’s the feeling of Autodesk’s CEO, Carl Bass, who goes on to say that modern technology has enabled us “to move more fluidly between what exists in the physical world to what exits in the digital world”.

The biggest change, he continues, is the ability to work with much richer data. “Modern data better captures the complexity of the real world and allows computers to take on more of the foundational work of building models, enabling users to devote more time to actually designing.”

Generative design

What the CEO is describing is known as “generative design”, a system that learns, works and supports problem solving the same way that nature does.

70 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Autodesk and Local Motors collaborate on first industrial application of Spark, the open 3D printing platform to solve challenges in large format 3D printing (Image - Business Wire)

It starts with your goals and then explores all the possible permeations of a solution through successive generations until the optimum one is Generative design is expanding found; in other words, “a complete inversion of the human potential traditional perspective”, says Autodesk CTO, Jeff Kowalski. it hasn’t been practical previously and “Nature takes the optimum design sat largely locked up in theoretical and reiterates; in that way, it only moves computers. That is until now. forward. For us to experience similar The Cloud has provided access progress, we need to consider the huge to the computing power generative corpus of potentially relevant ideas and design requires, in essence accelerating designs that already exist. evolution like nature. Though what the “We need to stop telling computers Cloud offers doesn’t just stop with what to do and instead tell them what generative design, according to Bass, we want to achieve, utilising them as not the cloud also provides “a natural merely tools, but portals for exploration hub for project collaboration, with and an expansion of human potential.” collaboration and design management Looking at design as a living process built into everything rather than being isn’t a new concept, but due to the another task layered on top”. volume of processing power required,

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Community of things

Kowalski notes that whether designed in a more traditional manner or utilising next generation technologies, “as wonderful as our creations are, they are all more dead than alive.”

“Intelligent taxonomies and generative design may help bring life to design, but the moment that creation is brought into the world, it starts dying [due to obsolesce, either planned or otherwise]. “[To become more alive], the things that we design and manufacture now and in the future need to do three things - sense, respond and collaborate.

Collecting data, even big data, isn’t enough. We need our objects and environments to respond, to act on sensory input.”

The CTO thinks that we’ve been too focused on simply delivering “things” and we haven’t considered the environment our products exist in or the potential experiences they can provide.

“We need to move away from the Internet of Thing, i.e. solely talking to me, to better realise the Internet of Things, i.e. communicating with each other and becoming conscious of what’s happening out in the world.”

Hardware revolution

Behind the front cover of Autodesk’s Sparkpowered 3D printer, Ember

Helping to further the dual market disruptions of both generative design and “more alive” things is additive manufacturing, a process that holds the promise of shrinking the distance between a design and a finished, realworld artefact.

There has been an almost 35,000% increase in 3D hardware over the past five years, but there still exists a 25 – 75% failure rate. The current process of information moving from design tool to printer is convoluted and fragmented, let alone inefficient and costly, and at present there exists a broad spectrum of variables in choice of tool and machine.

72 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Manufacturing Technologies

Alongside these three technology trends, Autodesk also predicts:

1

Markets of One - mass personalisation will march toward the mainstream In the past few years, an increasing number of companies have started to offer customers the ability to customise their product by allowing customers to select from predefined options. Diego Tamburini, manufacturing industry strategist at Autodesk, predicts this trend will build with consumer demand for products uniquely tailored to their needs, tastes and bodies increasing.

2

Human-Robot Symbiosis our relationship with robots will be redefined In the future, humans and robots will collaborate and learn from each other. Today, robots are receiving data and use machine learning techniques to make sense of the world and provide actionable analytics for themselves and humans.

Nevertheless, robots are not artists and they will need inspiration and guidance from us for the foreseeable future. In the words of Autodesk Technology Futurist, Jordan Brandt, “a robot is no more a craftsman than an algorithm is a designer.”

3

Digital Cities - big data will inform our urban landscape Thanks to advances in laser scanning, sensors and cloud-based software, cities are now being digitised into 3D models that can be viewed from every angle, changed and analysed at a moment’s notice.

Cities like Los Angeles, Chicago, Singapore, Tokyo and Boston are working to digitise not just the shapes and locations of their buildings, but

Regardless of what file you send them, 2D printers work. Autodesk has attempted to bring that uniformity to 3D printers by exploring the intersection of hardware, software and materials to create Spark (the first free, open 3D printing software platform) and Ember (the first Spark-powered 3D printer).

Throughout history, technology has always disrupted how things are made so shouldn’t be something to fear,

create a data-rich, living model of the city itself — complete with simulated pedestrian traffic, energy use, carbon footprint, water distribution, transportation, even the movement of infectious diseases.

4

Living Buildings - buildings are dead, but new materials and technology are bringing and returning them to life David Benjamin, founding principal of the design and research studio The Living, is collaborating with plant biologists at the University of Cambridge to grow new composite materials from bacteria, a process that uses renewable sugars as a raw material rather than non-renewable petroleum used for plastics. In 2014, The Living delivered Hy-Fi, a “living” installation for the Museum of Modern Art. The temporary installation involved a 40-foot-tall tower with 10,000 bricks grown entirely from compostable materials — corn stalks and mushrooms — and developed in collaboration with innovative materials company Ecovative. The building was disassembled at the end of the summer and all of the bricks have been composted, returning to grade A soil.

5

Made in Space - 2015 will be the year of space manufacturing With over 30,000+ hours of 3D printing technology testing, Made in Space has led to the first 3D printers designed and built for use on the International Space Station. As Made in Space CTO, Jason Dunn explains, “no longer do engineers need to design around the burdens of launch - instead, in 2015 we will begin designing space systems that are actually built in the space environment. This opens an entirely new book on space system design, a book where complex 3D printed structures that could only exist in zerogravity become possible”.

reflects Bass, adding that the most important resource moving forward is young engineers, designers, makers who grow up understanding the tools of the future.

“To assume that the solutions to the biggest global challenges will come solely from professionals and industry is naïve. The future will be built by small hands creating big ideas for everyone.”

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K3 launches academy to help plug Internet of things skills gap

Following the success of its retail-based K3 Academy, K3 Syspro has launched a sister academy aimed at filling the UK’s technology skills gap and attracting young people to a career in software within the manufacturing and distribution sector.

Internet of Things (IoT) enabling technology businesses, ThingWorx and Axeda, which were acquired by PTC in 2014, both received prestigious awards from Compass Intelligence at last week’s International CES, the world’s largest consumer electronics show.

‘‘W

e are honored to have been recognised for our innovations in advancing the technology that enables the Internet of Things,” said Jim Heppelmann, president and CEO, PTC. “We are focused on giving companies the tools and technology they need to connect their products and create the applications that will empower them to thrive in this new world. These awards validate the strength of our offerings.”

The 2015 Compass Intelligence Awards were selected by 60+ industryleading press, editors, and analysts who cover the mobile and wireless market. The Compass Intelligence Awards includes Mobility, A-List in M2M, Bamboo Mobile Green Technology, and Customer & Digital Experience Awards.

The Awards recognise the best in mobile computing, wireless data communications, Internet of Things, green technology, digital & customer experience products and services offered in the market during the past year.

“Compass Intelligence is proud to honour and Arriv ing a recognise industry t the awa rds leaders that are advancing the mobile

74 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

industry and innovating to better enable consumers and the enterprise,” said Stephanie Atkinson, CEO & founder, Compass Intelligence in a statement.

“This esteemed list of awardees represents the future of wireless, M2M, and eco-friendly products and services.

The consensus from industry experts makes the Compass Intelligence Awards a true industry recognition for vendors and service providers.”

Six steps to manufacturing efficiency in 2015 Fraser Thomson from Manufacturing Execution Systems Specialist, reveals six essential changes your business should make in 2015.

I

n 2015, customers will be demanding lower prices without sacrificing product quality.

Manufacturers need to make sure efficiency is at the top of their list of New Year Resolutions.

Sustainable savings can derive from implementing smarter manufacturing processes such as supply chain technologies. Making even the smallest of changes in these six areas can significantly lower operating costs, boosting the bottom line.

Be informed – Having a lack of visibility and knowledge into the production processes and inefficiencies can impair the quality of decision making. Implement processes and

1

Snapshots

A

provider of ERP applications to businesses throughout the UK and Europe, K3 Syspro has announced the independently set up and funded yearlong programme will teach young people data management and support; IT project management; customer service; marketing and more, with extensive SYSPRO and Microsoft product training as well.

Based in Salford and open to graduates from all disciplines, as well as people who have left education or are looking for a change of career path, K3 stated that its Syspro Academy will result in “full time positions with the company for successful graduates” - unlike some of the UK’s other academy schemes.

The company noted that each academy student will be given a mentor to assess and monitor performance while they are on the course, as well as offering a buddy system to give added informal support, experience and insights.

IT in Manufacturing

ERP product itself, while ensuring that Upon completion of the we always have the highest course, trainees will be quality of skills awarded full SYSPRO and experience certification, further in our business advanced training and for the long term. the opportunity to “By pairing start a career with the students up with established 35-yearour experienced old business. team, we can Managing director create a shared of K3 Syspro, Cathie knowledge base Hall explained: and future proof “Something that our business for every industry is many years to come, facing is a lack of while creating real skills and many Trainee certific s will be awa job opportunities for young people and th ation, further rded full SSP e chan R young people in the UK often bemoan the ce to stadvanced traO art a c areer wining and contributing to the lack of options ith K3 overall economy.” available to them K3 Syspro has when it comes to gaining real confirmed that it is life work experience. looking to recruit two students to its “The K3 Academy solves both issues.

Academy in January 2015, a further two It allows us to give young people in July 2015 and two more in September an exciting introduction to business 2015 for the academy pilot. systems consultancy and the SYSPRO

Making even the smallest of changes in these six areas can significantly lower operating costs, boosting the bottom line systems which provide the data and information needed to collaborate between departments.

Ditch the paperwork – Using paper based manual systems can result in inaccurate information and cause poor decisions to be made. Replace paper based systems with electronic systems to benefit from accurate real-time manufacturing intelligence.

Improve quality – Fixing quality problems can be time consuming and costly.

Eliminate common quality problems and reduce the number of defect products.

Track and trace – Reduce the cost of product recall and the damaging affect to brand reputation caused by poor quality products. Track and trace a product from ‘Farm to Fork’ for increased product quality, safety, transparency and improved recall responsiveness.

Use less energy – With rising manufacturing energy costs and the need

2 3 4 5

to meet social responsibility policies, it is key to drill down into the factors that impact energy efficiency of existing assets and machinery, in order to eliminate unnecessary energy costs. Savings start with monitoring and recording energy consumption; so identify the activities that waste energy and put a strategy in place to reduce them.

Keep getting better – CI is at the heart of any lean initiative and so having a dedicated CI team in place from day one is important to drive the process and journey forward. The role of the team is to get buy in from operators and stakeholders so that everybody understands what role they play in the improvement process and that they see the potential value of the program, departmentally and companywide. Evolving an improvement culture and strategy across the whole organisation is vital to a successful CI programme.

6

on oms er Th Fras

FURTHER INFO: For more information please contact Cimlogic on 01274 599955 or emailmarketing@cimlogic.co.uk

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 75

E

mploying just nine people, Brackley-based KW Special Projects is a high-performance engineering business specialising in the application of the digital fabrication and additive manufacturing.

The local Formula One motorsport industry is one part of its customer base, but so too are aerospace companies, medical device companies, and defence companies.

That said, founder and managing director Kieron Salter is all too aware of the danger of his £1m turnover business being pigeon-holed.

“We’re not sector-specific, or technology-specific,” he insists. “We have core specialisms - digital fabrication and additive manufacturing - and we apply them to solve our customers’ problems, in whatever industry those customers happen to be.”

An hour’s drive away, in the Birmingham suburb of Smethwick, Mark Wingfield - managing director and cofounder of A&M EDM - is mostly to be found on the factory floor of the industrial unit that the business occupies. Trading for just 12 years, A&M has become the largest wire-erosion and spark-erosion

76 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Mind the gap

For small scale manufacturing, ERP isn’t appropriate.

But what is, asks IT Editor Malcolm Wheatley.

subcontractor in the UK, and as its name implies, is rigidly focused on electrical discharge machining.

“By design, and very deliberately, we’re quicker and more flexible than the bigger guys,” says Wingfield. “We’ve never employed a sales representative, and last year we turned over £4m.”

No wonder the spotlight is shining so strongly on businesses such as KW Special Projects and A&M EDM. As their enviable track records demonstrate, small niche manufacturers play not just a vital role in the UK’s larger manufacturing industry, but also act as economic

powerhouses, creating jobs and skills in urban and rural environments where opportunities can sometimes be few.

Moreover, such businesses are innovating at a frenetic pace. Take Portishead-based power tools specialist CEL. Very much a ‘virtual business’, with fewer than 20 employees in the UK, and a literal handful of people in Hong Kong, the company’s search for a better and cheaper rapid prototyping solution eventually led it to develop what it now sells as Robox, a micromanufacturing platform based on Fused Filament Fabrication, which works in

We’re achieving all the things that a bigger organisation would do, but probably not as efficiently as we might be able to do Kieron Salter Managing Director, KW Special Projects

Micro business software solutions

a similar way to a hot melt glue gun.

“We developed it to meet our own needs - and then discovered that we weren’t the only company wanting to bring rapid prototyping in-house,” says managing director Chris Elsworthy. “We didn’t invent the technology - but we have found a way to bring it to the home workshop, the ‘maker market’, and small specialist manufacturing environments.”

Where’s the ERP?

Look closely at such companies, though, and one thing immediately stands out.

Where larger, traditional manufacturing businesses these days rely heavily on ERP systems and similar manifestations of enterprise computing, many small specialist manufacturers such as KW Special Projects and A&M EDM elect not to use such tools.

To be sure, enterprise applications focused on businesses’ technical competencies are usually there in abundance. At KW Special Projects, for instance, top-of-the-line SolidWorks Professional is the CAD tools of choice, coupled to EPLAN for electrical schematic design work. And at A&M EDM, a wide variety of CAD and CAM software is in use, reflecting the diverse engineering design platforms of the company’s customer base.

But ERP, and similar cross-functional enterprise technologies?

“At the moment, we use our own systems, designed and built in-house in Microsoft Access and Microsoft Excel, and which are linked to our accounting system, QuickBooks,” says KW Special Projects’ Salter. “We’re achieving all the things that a bigger organisation would do - including traceability to standards set by America’s Food and Drug Administration - but probably not as efficiently as we might be able to do.”

No straitjacket, please

A&M EDM’s Wingfield makes a similar, although subtly different point. Companies such as A&M EDM are ‘jobbing shops’, he points out, undertaking a lot of ‘one offs’ and rapid prototyping—whereas ERP and similar systems tend to be associated with businesses engaged on more repetitive manufacturer.

“Because of the type of work we undertake, using ERP or MRP would be very difficult. We’re a very flexible skillsbased business, and we worry about

IT in Manufacturing

Adapting to the ‘maker’ market As the phenomenon of small-scale niche manufacturing continues to take hold, some software sectors are actively engaging with such businesses, bringing specially created offerings to the table.

CAD giant Autodesk, for instance, has created a whole new division that would have been unthinkable a few short years ago: the Autodesk Consumer Division, which has launched both simple design tools and small-scale 3D-printing into the ‘maker’ and niche manufacturing markets.

“Our traditional market was only ever going to be a certain size,” says Jesse Harrington, Autodesk programme manager for the 3D-printing and maker space. “But going after the small-scale and consumer market while maintaining our integrity in the professional market is a tough proposition, and we’re proud that we’ve been able to achieve it.”

Similarly, on-line trade platform GT Nexus - which connects together 25,000 manufacturing businesses, which collectively buy and sell [US dollars] $1bn in goods - is another enterprise vendor targeting the emerging small-scale manufacturing market.

“We’re seeing a lot of small firms springing up - often in very rural locations - making highly-engineered products for major companies,” says Diane Palmquist, vice president of manufacturing solutions at GT Nexus. “Whoever heard of a ten-man shop supplying giants such as Caterpillar? But the Internet has really levelled the playing field, because with the Internet, and the Cloud, the need for scale goes. All you need is skilled workers, and robotics.”

Whoever heard of a ten-man shop supplying giants such as Caterpillar?

With the Internet, and the Cloud, the need for scale goes: all you need is skilled workers, and robotics Diane Palmquist Vice-president of Manufacturing Solutions, GT Nexus

systems getting in the way of doing what we do,” he argues.

KW Special Projects’ Salter concurs, adding that all single manager businesses face the dilemma of having to start with simple, rudimentary systems, from which they then eventually migrate.

“There comes a point where the burden of such systems becomes too much, and at that point they need to start looking around at alternatives,” he observes. “But from our point of view, we worry about being locked into systems that are too rigid, and which aren’t flexible enough to work the way

that we want to work. We don’t want a system which will become a barrier: we want a system which will be there to help us.”

The challenge for the ERP industry seems clear. While larger businesses welcome externally-imposed best practices and ‘out of the box’ industry templates, small niche manufacturers - with perhaps just a handful of employees - want systems that will adapt to them, and not the other way round.

Is it a circle that can be squared?

We’ll have to wait and see.

February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 77

Microsoft

IT in Manufacturing

Have tablet, will travel Going mobile has never been easier. Even so, pitfalls await the unwary, Microsoft’s Colin Masson tells IT Contributing Editor Malcolm Wheatley.

T

hese days, it’s a ‘Mobile first, Cloud first’ world. And for manufacturers, two important things stem from this, stresses Colin Masson, Microsoft’s global industry director for manufacturing and distribution.

First, an increasing amount of employees’ interaction with enterprise systems is carried out while away from their deskbound computers.

And second, the ready ability to link mobile devices to enterprise systems is re-writing the rules of where those enterprise systems can reach, and which groups of employees can leverage their power.

“The workforce are used to mobile devices, and have come to expect them,” he sums up. “If they can access Facebook and e-mail from anywhere, why not enterprise systems?”

But make no mistake, points out Masson: cloud technology is central to this mobile deployment, offering a way to blend—say—Microsoft Office applications with enterprise systems, such as Microsoft Dynamics AX and CRM that can run on devices, and the mobile device management systems that this ‘Mobile first, Cloud first’ world demands.

So what, specifically, should manufacturers be doing to take advantage of this brave new world?

78 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

Masson offers three thoughts for manufacturers to ponder.

“First, enterprise software needs to be reimagined for the mobile workforce,” he stresses. What does this mean? For a start, manufacturers are no longer tied to a single desktop or mobile device operating system. Microsoft’s Office applications, for instance, are now available for Android devices, Apple iOS devices, and of course Windows devices. Once, that would have been unthinkable. Enterprise workflow and experiences also have to be reconceived: not only do Microsoft Dynamics AX and Microsoft Dynamics CRM provide new role-based productivity applications for the major mobile platforms, but also rich development tools for manufacturers to build their own applications.

“Second, Microsoft is in the services business every bit as much as it is in the product business—so we can help you manage this ‘Mobile first, Cloud first’ world, managing devices, keeping them secure, and making them more productive,” he adds. “And that’s whether the devices are Microsoft devices, or non-Microsoft devices — and whether the devices are company-owned, or owned by individual employees.”

“And third,” he urges, “Don’t make the mistake of putting the wrong devices

into manufacturing environments: consumer-grade devices often lack the ruggedness, battery endurance, processing power, connectivity and extensibility of built-for-manufacturing devices—which, by the way, don’t have to be expensive.”

Indeed, he points out, the combination of Microsoft’s own line of mobile devices and those of its hardware partner ecosystem has resulted in a wide range of sturdy purpose-designed devices for the factory floor. Panasonic’s ToughPhones, ToughPads, and ToughBooks, for instance, are designed for life in the toughest of manufacturing environments.

Generally capable of lasting a full day or shift on a single charge, such devices need to have the extensibility and connectivity to be operated in environments where users might be wearing gloves, or wanting to connect—wirelessly—to peripherals such as barcode scanners or factoryfloor printers. Even better, he adds, manufacturers don’t have to develop custom applications for each device: universal Windows applications run across all these form factors—phones, 6” phablets, tablets, desktops, 80-inch All-in-Ones, and even the Xbox One. In short, sums up Masson, manufacturing is going mobile—but doing so with devices that have been purpose-designed for manufacturing, and which are fully linked with enterprise systems, keeping employees productive on the shop floor, in the office, and in front of customers.

FURTHER INFO: Learn more at www.microsoft.com/ en-gb/dynamics/manufacturing. aspx

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February 2015 | Issue 1 | Volume 18 | www.themanufacturer.com 79

Election fever

TALK OF THE INDUSTRY

Ahead of the election, if manufacturers have one message for all parties as they prepare their manifestos, and prepare for the government, it is this: if it ain’t broke please don’t try to fix it

Election fever The countdown to a politically electrifying election has begun. In many respects it will be a plebiscite, with the defining issue being the future economic management of our nation.

Terry Scuoler takes a look.

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his time last year 70% of the companies we surveyed were optimistic about prospects for the year ahead. That rush of positive energy has almost halved. Meanwhile, worryingly, the number of executives expecting conditions to actively deteriorate has tripled, with 17% of those asked voicing concerns.

One of the problems is uncertainty driven by concern about shorttermism when it comes to policymaking and planning for the future.

Political uncertainty is at the top of that list, arising from a too-close-tocall election with a significant range of potential outcomes all of which could lead to a raft of changes in the way the government works to support - or not - industry.

Add to this the ongoing difficulties in the Eurozone and a greater threat from geo-political events such as the wider impact of Russia’s activity in the Ukraine and, the impact of sanctions, and you begin to sow the

80 www.themanufacturer.com | February 2015 | Issue 1| Volume 18

seeds of doubt in terms of confidence. After the experience of 2008, manufacturers of all sizes still remain cautious and risk averse.

Looking back to the build up to the last election in 2010, the drive to truly rebalance the economy, following on from the financial collapse experienced in 2008, with a greater emphasis on manufacturing and, its ability to usher in a new industrial revolution was very much in vogue.

Today talk of rebalancing is more often than not used as shorthand for closing the north-south divide. It is in danger of diluting the still critical issue of creating a better balanced UK economy

where industry and manufacturing form a greater share of GDP. That takes long-term planning and consistency of approach.

The coalition government has, however, made progress on this front and has proved to be a strong supporter of manufacturing, developing an industrial strategy which should be applauded. Ahead of the election, if manufacturers have one message for all parties as they prepare their manifestos, and prepare for the government, it is this: if it ain’t broke please don’t try to fix it. What is more, do not pull the rug from under the feet of initiatives that support longterm industrial growth such as new infrastructure, roads, rail and other key projects, as well as funding for innovation. Maintain the support for research tax credits and other critical business support, such as UKTI, that focus on the long term drivers of growth and industrial excellence.

Britain’s manufacturers are also very clear about Europe. Britain’s economic well-being is predicated on our continuing membership of the EU. Reform from within, yes. But Britain must play a leading role as a member.

Brexit would be a disaster.

Whatever the shape of the new British government on the May 9th, we know public spending will be squeezed in the next term. It is essential that support for business and an industrial strategy that puts Britain on course for long term, sustainable economic growth remains a top priority and not an easy target for cuts.

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