EDITOR’S CHOICE
PREPARING FOR UNCERTAINTY
COPA DATA
BRITISH MANUFACTURING IN 2019
Increasing digitalisation, the growing skills
shortage and the uncertainty of Brexit —
British manufacturing has a lot to contend
with. Despite this, the United Kingdom is
predicted to break back into the top five
manufacturing nations by 2021. Here, Martyn
Williams, managing director at COPA-DATA
UK, examines how manufacturers can
withstand this growing uncertainty and
prepare for the future.
Contrary to widespread sentiment, British
manufacturing is thriving. According to
statistics by the EEF, the sector employs 2.6
million people, accounts for 44 per cent
of exports and provides 13 per cent of all
business investment. However, that’s not
to say the industry is completely home and
dry. Amidst upcoming political turbulence,
manufacturers need to prepare.
INVEST IN TECHNOLOGY
Manufacturers should plan for the worst-
case Brexit scenario, but this could create
challenges regarding current business
models. We’ve all heard about the
importance of adopting new technologies,
but this could become more difficult without
the ease of open supply chains. That said,
manufacturers cannot stagnate.
Investments in new technology should
only be made once manufacturers have
identified the top pains in their facilities.
Frankly, these problems will exist regardless
of whether Brexit occurs or not. For example,
a manufacturer may find excess energy
consumption is its biggest outlie, meaning
implementing technology to reduce this
wastage would be the best use of investment.
Industrial software with predictive
maintenance, for instance, can provide
original equipment manufacturers (OEMs)
with opportunities to monetize their
service revenues. Let’s say a manufacturer
of automated conveyors has implemented
this software onto its machines. Using
predictive analytics to monitor the typical
lifecycle of a conveyor, the OEM can predict
when the equipment is likely to require
maintenance and take action to prolong its
lifespan.
That said, identifying the best solution isn’t
always simple. There has been a tirade of new
technology on the market, much of which
is veiled in technological jargon, sometimes
making it difficult to comprehend. Rather
than choosing the newest technology on
the market, manufacturers must do their
research, examine case studies and ensure
they choose a reputable supplier before
making investments. Using this data-backed knowledge,
the manufacturer can offer a servitised
version of the product, thus generating
more income. As well as growing revenue
streams, adopting service models allows
manufacturers to foster business with
existing customers. Greater customer
retention could become invaluable,
depending on the volatile political
circumstances occurring outside of the
factory walls.
ADOPT NEW SERVICE MODELS
Deploying technology is an ideal way to
manage pain points in manufacturing.
However, technology can also boost profits
by enabling new service models. This is
particularly pertinent for investments in
software platforms that can be integrated
with the cloud. INVEST IN SKILLS
Inside the factory, Brexit’s potential change
to free movement will have an impact
on recruitment and skills. That said, the
bigger challenge remains the same— the
sector simply doesn’t entice enough young
talent. There’s a requirement for a massive
expansion of schemes and initiatives to
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PECM Issue 37
encourage people to join the industry, but
that’s a challenge for the Government.
During the upcoming period of uncertainty,
manufacturers should take responsibility to
invest and upskill their existing staff. This is
particularly important as organisations invest
in digital technologies to automate processes.
Staff want to be certain that their skills remain
valued, even in an increasingly automated
environment. Inherently, employees want to
be proud of what they do and pursue work
which is meaningful. Lack of investment
in this area will result in lost staff. During
the ambiguity of Brexit, this risk isn’t worth
the drain on time, resources and finances
that recruiting new staff, and subsequently
training them, will require.
Britain’s manufacturing outlook may not be
as gloomy as some reports may suggest.
However, the sector should be preparing itself
for a turbulent twelve-months ahead. Looking
forward to 2019, manufacturers should
continue pursuing their digitalisation goals,
but must put a clear focus on investing in the
right technology, creating business models
for growth and importantly, maintaining and
upskilling their valuable workforces.
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