How we can support a digital resurgence of the UK manufacturing sector
11 October 2018
Shutterstock image
Manufacturing generates less than 11% of the UK’s economic Gross Value Added (GVA). Yet indications are manufacturing might be heading into a renaissance. This may be good news for the British economy, but broadly repatriating manufacturing might devastate some emerging markets. The questions are, what is driving this shift, why now and what do we do about it all? Stephen Dyson, head of Industry 4.0 at Protolabs takes a look.
According to a recent report by the UK manufacturing purchasing managers’ index (PMI), released by IHS Markit, the ‘soft patch’ in the UK’s manufacturing sector continued into the second half of this year, dropping to a three-month low with the PMI declining to 50.9 from 52.9 in June. The report shows how the upturn in the sector has eased since the end of 2017 and ‘manufacturing has failed to provide any meaningful boost to headline GDP growth’.
A digital backbone powering the manufacturing renaissance
It’s hard to see the full picture of why the manufacturing industry, especially in the UK, is still seeing a degeneration. The industry is in the midst of a digital insurgency with new business models built around customer demand, production speed and enhanced software programming, but the manufacturing industry is still facing scrutiny from parties concerned for its survival.
While the UK is still among the world’s ten biggest manufacturing nations, there is no denying the decline the sector has experienced in recent years. With the UK shifting its offering and focus away from products and towards services, it’s fair to say that the time has come for a manufacturing renaissance. The UK government needs to play a central role in this, especially as boosting manufacturing output is clearly high on the agenda of governments across Europe and beyond.
Often described as Industry 4.0, we have progressed from cottage industries, through automation and mass production, to a new era of digital design and production. This transition has taken place over the last 30 years, beginning with design software like CAD/CAM and bolstered by the emergence of 3D printing and additive manufacturing techniques. The result is Design and Manufacturing processes are no longer separate activities, rather they are merging into a contiguous whole, which is enabled by a digital backbone.
Bridging the skills and investment gap
There is a hitch in the manufacturing renaissance plan, however. Misconceptions of young people at the beginning of their career do not consider manufacturing a high-tech career choice, combined with the falling number of people leaving education with relevant skills for the manufacturing industry, presents a pertinent skills crisis which is currently plaguing the industry.
What’s more, the lack of skilled workers, supply, and absence of investment capital in manufacturing combined presents the challenge of other countries buying out UK organisations. For instance, somebody could want to set up a company with a completely new idea, but would be unable to get the right financial backing, so they’d have to sell their idea to another country, and then the UK would have to import the product later on. It would negatively impact UK economy and productivity.
The solution could be for the government to directly support manufacturing start-ups to stimulate interest generally, while better understanding the practical challenges of establishing digital manufacturing when skills are in limited supply. Another solution could be for organisations to re-define and re-launch apprenticeships for skills and opportunities rather than short-term employment, really investing in staff’s skills from the ground up.
Supporting innovation
Since the 18th century, the UK manufacturing sector is powered by innovation and driven by entrepreneurial individuals partnered with highly-skilled engineers. We’ve seen government agencies such as the Technology Strategy Board announce funding of £18 million to go to manufacturing innovations as recently as last November, but the statistics have spoken and it’s clear that the manufacturing sector needs more government support, whether it be financially or just a new fresh focus, to make its renaissance a reality.
The government must take the lead in guiding us into a new era of manufacturing helping to bring a digitally enabled workforce and opening up the UK to the next phase of industrial opportunity.
Contact Details and Archive...