< Previous20 Business Link www.blmforum.netPRODUCTIVITY AND EFFICIENCY IN MANUFACTURINGAfter a relatively stable start to 2018, the UK manufacturing industry showed a more mixed picture towards the end of the year. Manufacturing growth has slowed noticeably according to PwC in comparison to relatively high rates in 2017. A 2.6% growth in 2017 has become a slower estimated 1.2% growth in 2018, with the expectation of a 1.4% growth in 2019. According to the ‘IHS Markit/CIPS PMI Index figures’, released in October, new orders, output growth and employment plummeted for the first time since July 2016 - since the EU referendum. PMI dropped to 51.1, a 27-month low, and much lower than the market expectations of 53, which businesses are attributing to low levels of new work from overseas - EU countries in particular - and global trade tensions, as well as weak demand for autos. As an export-intensive industry, any more intensifying of international trade tensions in 2019 will see manufacturers face downside risks. The index also reveals, as mentioned, UK manufacturing employment levels reached a 27-month low, however employment in SMEs rose, while decreasing at large companies for the third month in a row. In the quarter to November meanwhile, a more positive picture appeared as manufacturing output growth was found to have picked up, according to the ‘CBI Industrial Trends Survey’. Order books strengthened after the quarter to October slump and were better than the long-run average. Export order books also improved slightly after a weak October. In addition, the ‘IHS Markit/CIPS UK Manufacturing PMI’, rose from 51.1 in October to 53.1. However, more concerns appeared with the subsequent Q4 ‘EEF/BDO Manufacturing Outlook Survey’, which indicated that though output and orders remain positive, the outlook for manufacturers is deteriorating as a result of continued Brexit uncertainty, An future Yorkshire is renowned for its manufacturing prowess, but if it is to remain competitive on a global scale, manufacturers must embrace automation. © Shutterstock/PaO_STUDIOautomated20-23.qxp_Layout 1 04/01/2019 09:48 Page 1Tel: 01482 325676 • Email: sales@kingston-engineering.co.uk • www.kingston-engineering.co.uk Kingston Engineering are specialists in precision engineering, based in Hull. As one of the region’s leading companies in their sector, Kingston Engineering can provide specialised power screw products, specialist leadscrew and ex-stock power nuts and screws. In addition, they can provide expertise and guidance in factory and production machinery installation, commissioning, maintenance and repair.www.blmforum.netBusiness Link 21PRODUCTIVITY AND EFFICIENCY IN MANUFACTURINGweaker global growth and the effect of protectionist policies. According to the survey, in regard to domestic orders, companies are planning to increase inventory levels ahead of Brexit, while exports have “hit the brakes,” with export balance halving since Q3. Additionally, the survey also highlights weaker employment and investment intentions. A more positive outlook for Yorkshire was identified in the report with domestic and export orders rising to +26%, above the UK regional average, and Yorkshire manufacturers’ confidence growing in contrast to the national trend. Looking at more data for Yorkshire and the Humber, the ‘EEF/BDO Regional Outlook 2018’ report referred to the region as a “star performer” due to its output and order balances, employment and investment activity in 2017. Our region has seen a year of growth that has exceeded, according to the EEF/BDO, the UK average. Yorkshire is renowned for its manufacturing industry, which now accounts for 13.6% of the region’s output, above the UK average. The region has also, according to the report, seen a 2% growth in manufacturing businesses after years of no growth. The region’s dedication to the manufacturing industry has been highlighted this year by the new 22 Á20-23.qxp_Layout 1 04/01/2019 09:48 Page 222 Business Link www.blmforum.netPRODUCTIVITY AND EFFICIENCY IN MANUFACTURINGMcLaren Automotive centre, an innovation and manufacturing facility in between Sheffield and Rotherham, which has acted as a £50 million investment into the region’s advanced manufacturing prowess. The confidence in Yorkshire manufacturing was further emphasised by Siemens’ investment in a new train factory in Goole, for Tube trains, which has been given the green light. The whole of the UK’s manufacturing industry is also set for a boost with £121 million additional funding, announced in the Autumn Budget, for the ‘Made Smarter’ campaign, which will see the government invest in technological innovation in manufacturing - such as Internet of Things (IoT) - and the transformation of the UK manufacturing industry. The adoption of cutting-edge technologies and further innovation is key to the future success of the UK’s manufacturing industry if it is to keep up with firms worldwide. UK manufacturing is at a point of revolution where the automation of processes - such as through artificial intelligence (AI), use of robots and machine learning - is leading the way forward, and is vital for improving productivity, efficiency and the overall bottom line. If the UK is to remain competitive, more automated machines are required. While the UK has 71 robots per 10,000 manufacturing workers, Germany has over 300. Manufacturers are beginning to embrace ‘lights out manufacturing’ as a way of meeting demand, increasing production and quality, reducing employee risks, addressing the staffing crisis, and reducing costs. The strategy involves using robotics in automated factories where no human workers are required on site while products are produced 24/7, though very few factories run a full ‘lights out’ strategy, keeping a small number of employees on site for tasks such as quality assurance. The main current downside for ‘lights out manufacturing’ is the expense of implementing it, and thus manufacturers are more inclined to partially automate operations with the opportunity to scale up, and have humans and robots work together to improve productivity. The use of AI and connected factories is the next step for many of the UK’s manufacturers, as they give businesses a real competitive advantage, extend human capabilities, and are essential in a world where production now needs to be flexible and responsive so that products can meet customer specifications when required and so that manufacturers can make production as efficient as possible. Through sensors, connected factories produce significant amounts of data in regard to anything from customer feedback to product production status. AI can be used to make sense of this data so firms are able to optimise operations. For instance AI can detect wear and problems with machinery and ascertain when they might breakdown or need maintenance, allowing one to create a solid predictive maintenance programme that reduces chance of equipment failure, repair costs and downtime. Machine learning, an application of AI which allows systems to automatically learn from experience without being programmed, can also be a real benefit for manufacturers allowing them to alter the production line quickly when 20-23.qxp_Layout 1 04/01/2019 09:48 Page 3www.blmforum.netBusiness Link 23 PRODUCTIVITY AND EFFICIENCY IN MANUFACTURINGrequired. For instance if there is a fault in a product that one needs to ensure does not reoccur, one can do so easily without time costly programming, creating a more flexible system. In embracing automation and other technological advances, the region’s businesses need to prepare their employees for the workplace and skills of the future. Jobs in the manufacturing industry are changing in coherence with rapid technological developments. Increasing automation of processes means businesses must invest in sustained training and upskilling to meet these changing job roles which will see more employees needed for the creation, maintenance and operation of automated systems. The switch in manufacturing jobs means that fewer human workers are required for repetitive assembly line jobs, which will ultimately free up time for less menial tasks - an extra benefit for businesses embracing automation.© Shutterstock/maxuserUnits 4b & 4c, Harpings Road, National Avenue, Kingston-upon-Hull, East Riding of Yorkshire HU5 4JF Tel: +44 (0)1482 440222 Email: esales@eyh.co.uk Web: www.ehy.co.ukeyh .co.ukEAST YORKSHIRE HYDRAULICS Hydraulic engineering - design, build, installation and service.• Complete hydraulic systems • Installation and commissioning • Hydro-pneumatic accumulators • Hydraulic equipment • Cylinders Single Source Hydraulic Solutions Design, build, installation and service of hydraulic systems, cylinders, accumulators and equipment. 20-23.qxp_Layout 1 04/01/2019 09:48 Page 424 Business Link www.blmforum.netBUSINESS SCENEIoD Greater Lincolnshire annual business lunch 130 guests attended the IoD Greater Lincolnshire annual business lunch, held at the Bentley Hotel, Lincoln recently. Welcomed by Gary Headland, Greater Lincolnshire Chairman and CEO of the Lincoln College Group, Stephen Martin, Institute of Directors (IoD) Director General, spoke at the event alongside Dawn Barron, Founder of Human Alchemy, Board Trustee of the YMCA and Nomad Trust.STEPHEN MARTIN (DIRECTOR GENERAL IOD), GARY HEADLAND (GREATER LINCS CHAIRMAN) CARI GRICE, RON LYNCH, SOPHIE JACKSON, SUE CHARLESWORTH (IOD) GARY MCINTOSH (PRIORY GROUP), MARK TAYOR (LINCOLN COLLEGE), GRACE NEAL (LINCA) GARY HEADLAND, DAN HAYES (OSJCT), EMMA OLIVIER-TOWNROW (NEW THEATRE ROYAL) CAROLINE ALTON, CAMERON FORD (IOD) SUSAN LOVELL (WEALTH MANAGEMENT), KELLY GOODCHILD, PAUL COLCOMB (WRIGHT VIGAR ) JANET WOOTTON (IOD), GARY SMITH PHOTOS COURTESY OF RICHARD PICKSLEY24-25.qxp_Layout 1 04/01/2019 10:16 Page 1www.blmforum.netBusiness Link 25 STEPHEN MARTIN (DIRECTOR GENERAL IOD), GARY SMITH PAUL & DAWN BARRON SAM MORRIS (HOME FROM HOME CARE), CLAIRE FLAVELL (NHS) HILARY LONIEY, JOHN HENRY (SUSTAINABLE DIRECTION) PAUL SIMPSON (ANDREW & CO), SIMON SMITH (KINGSBRIDGE CORP SOLUTIONS) RAY PHILLIPS (WALTERS RURAL), PAUL COLCOMB (WRIGHT VIGAR) CLAIRE WAKELIN (BENJAMIN EDWARDS), NEIL HERBERT (CAPITAL ONE) JOHN HEBBLETHWAITE (JCH INVESTMENTS), JAMES PINCHBECK (STREETS) RICHARD WILLS (TRANSPORT CONNECT), CHRIS SHELBOURNE (WRIGHT VIGAR) ANGIE COOPER (BLM GROUP), SARA BIRD (SQWEARS COUTURE) EMMA OLIVIER-TOWNROW (NEW THEATRE ROYAL), AMANDA MCSORLEY, RACHEL BISHOP (BAILGATE INDEPENDENT) 24-25.qxp_Layout 1 04/01/2019 10:16 Page 226 Business Link www.blmforum.netIT AND TELECOMMUNICATIONSThe internet of all things has reshaped the way we do business and continues to do so even now. The ever-changing nature of this has caused trouble for many, however, with some companies still refusing to take advantage of the opportunities available to them, or to utilise them efficiently. The improvements in IT over recent years have often been considered one of the solutions to the dominance of the South East in the UK economy. The idea is that it no longer mattered if the company was based in London or Little Cawthorpe as technology would allow it to liaise with customers face to face, regardless of their location. Of course, for many in the more remote parts of Yorkshire and Lincolnshire, the reality was that their internet connections were so slow; it would have been just as effective to communicate via letter. However, it finally looks as if the remotest parts of the region are beginning to get better connected, thanks to various schemes backed by the Government, and other local bodies. This all seems like good news for those in the region, especially with automation and the internet of things moving toward fully digitalised factory lines. The promised improvements in efficiency might be exactly what the UK needs to stay ahead of competition on the global markets. However, these innovations do come with their own risks, especially in terms of security. Where companies are falling behind is more often on keeping their own affairs up to date – especially their web presence. Nowadays a company’s online presence is a large part of its marketing, which means getting it right is key – and a failure to do so can be crippling. With Google being the de facto search engine of choice, one’s listing on the site can make or break a company, which is why it’s important to keep an eye on changes to Google’s policies, and prepare for them. One such change that came recently was to websites that are not mobile friendly. Keeping up to date With more and more parts of offices, warehouses and manufacturing facilities going digital, it’s important to keep up to date 28 Á26-28.qxp_Layout 1 04/01/2019 11:48 Page 1www.blmforum.netBusiness Link 27IT AND TELECOMMUNICATIONS© Shutterstock/Lenka Horavova26-28.qxp_Layout 1 04/01/2019 11:48 Page 228 Business Link www.blmforum.netIT AND TELECOMMUNICATIONSResearch shows that smartphones and tablets accounted for 60% of all digital media time. With new iPhones, tablets and mobile devices being released, this figure is expected to rise in the coming years as well. Google, along with many other search engines have responded to this by rating companies with mobile-friendly websites higher in their organic rankings. This can be an incredible loss for those who haven’t made the moves to make their company mobile-friendly ahead of time, and a great stepping block for those who have. Smaller companies are expected to be hit the worst with this, due to the fact that many SMEs don’t have the funds or time to properly invest in SEO management, let alone optimising websites for multiple platforms. For any company who aims to generate leads through their presence on Google, then checking if their site is mobile-friendly or not and having some solve the issue if the latter is true, will become a clear necessity. This only gets worse with a new policy being hinted at, in which Google will also judge sites based on their speed and connectivity. This is not, as one might think, determined by the internet speed of the area the company is based in, but rather how “clunky” the site is – with an overabundance of non-optimised images slowing loading time, and any inefficiencies making users suffer. Google will have an automated system which can tell how long a site takes to operate, and those that waste too much time might find themselves dropped several pages. Again, preparation is key to preventing this, and companies who take their web design to task earlier will be less likely to face problems later. Nowadays it’s not enough to think of a company’s digital presence as a static thing. Like any good marketing campaign, it must grow and adapt to the needs of a company, matching and adapting to an ever-changing world. © Shutterstock/ImYanis26-28.qxp_Layout 1 04/01/2019 11:48 Page 3www.blmforum.netBusiness Link 29RENEWABLESRenewable energy is transforming how we generate power, creating an energy system that can accommodate the UK’s needs whilst helping the country meet emissions targets and clean growth ambitions. Renewables is a fast-growing sector in Yorkshire and Lincolnshire, and our region is leading the way in offshore wind with numerous wind farms – such as Westermost Rough, Humber Gateway, Triton Knoll, Hornsea One, Hornsea Two and Hornsea Three – either operational or planned off the Yorkshire and Lincolnshire coasts. 2018 saw major steps forward for our region’s offshore wind offering with, for example, work beginning on Hornsea One. 75 miles off the Yorkshire coast, Hornsea One will be able to generate enough renewable energy for more than one million homes and will be the world’s biggest offshore wind farm when complete in 2020. The year also saw the official opening of Race Bank and the revelation of plans to double its size. Operated out of Grimsby the wind farm is capable of powering over half a million UK homes. Grimsby has certainly helped the region cement its place as a leader in offshore wind, being chosen by many in the offshore wind industry as a base for their O&M teams due to the access the town offers to the world’s largest offshore wind farms in the North Sea. Yorkshire also hosts the largest single site renewable generator in the UK and the largest decarbonisation project in Europe, has plentiful land for onshore wind farms and biomass projects are growing in the region. Support for renewables in Yorkshire has also been strong with the last year seeing: £4m ERDF funding, £2.5m funding from Green Port Hull and £5.5m funding from University of Hull invested in the Aura Innovation Centre that will drive innovation in the region’s low-carbon sector; £1m invested by ABP into a solar initiative at the Port of Google; £400m invested by Aviva Investors to support the construction of the Hornsea One offshore wind farm. On a national level, the picture for renewables is bright. 30% of UK power generation came from renewable sources in 2017, according to government statistics. Moreover the DUKES energy statistics show that coal power fell sharply once again in 2017, with overall coal generation © Shutterstock/chuyussThe region for renewables 30 ÁYorkshire and Lincolnshire are a leading light in the renewables sector. With numerous offshore wind farms operational and in the works, the region is unsurprisingly key to the UK’s plans for a greener, cleaner energy future. 29-31.qxp_Layout 1 04/01/2019 10:22 Page 1Next >