British Fluid Power Association 2023

Critical Issues The Engineering and Machinery Alliance (EAMA) comprises a group of member trade associations, including the BFPA, who work with government and others to strengthen the machinery and component supply chain in the UK. EAMA facilitates this by helping members to communicate and work with government and other bodies, by providing information and analysis and networking opportunities. There are several top-ofmind themes that are currently being discussed by EAMA and its membership. I would like to highlight some of them below. Re-shoring Re-shoring is currently a very important issue. We’re seeing an increasing level of emphasis on reshoring worldwide, not only in the UK but around the world. As an Association, we are very keen for the UK to be as effective as possible in bringing back work to efficient, well-run suppliers at home. I often refer to something I call the Touker Suleyman Index. Two and half years ago, someone on the TV programme Dragon’s Den said he was manufacturing something in the Far East but wanted it made better and cheaper. Touker Suleyman said he could help and beamed: “I have a team in China!” It was a stark reflection of the reality that, at the time, the default position for very many companies was that if you wanted something made, look to China. Certainly, look outside Britain. I heard it myself on exhibition stands. However, the goalposts are shifting and so, hopefully, is the culture, knowledge and understanding for UK sourcing. In early 2020, we didn’t score many marks out of 10. Nevertheless, things are improving. I hear a lot from companies that are starting to supply more to UK customers. I’ve even heard from firms that are doing high-volume, low-margin work that they never thought it would come back from China. I suspect key reasons behind this move include the longer lead times, higher prices for containers and the increased labour costs now associated with China. So, the challenge is to retain this trend with efficient manufacturing and the support that EAMA and BFPA members can provide. The need for a UK manufacturing revival In his last speech as Prime Minister, Boris Johnson said buy a £20 kettle and save £10 per year. Now, whatever you think of Boris Johnson I think he was unfairly criticised for that comment. What he was really talking about was the Sizewell C nuclear power station, but I think the episode is a good illustration of an important point: We need a revival in UK manufacturing on a broad scale. I’m not fussed as to whether or not people buy a new £20 kettle – the issue for me is: who makes the kettles? The government talks about advanced manufacturing of things such as aircraft engines or wings and so on, which involve sophisticated and complex supply chains. However, all manufacturing can be sophisticated, highly efficient and made to a high-quality working to good design. It’s not just what you make, it’s how you make it that makes it advanced – including kettles. Supply chain knowledge As well as bringing back more manufacturing to the UK, I think there’s also a need to increase the knowledge and understanding of OEMs and tier ones as to what is available in the UK supply chain. There are gaps in capability, and we need to identify them and restore capability in some areas; but there’s also a lack of knowledge as to capability that is already here at home. There’s a macro political point here, which I highlighted to Rishi Sunak when he became Prime Minister. The Levelling Up White Paper launched in February 2022 identified a new imperative in policy. This was that we must “reverse the historic decline in manufacturing in the UK”. Although there hasn’t been a lot of detail to back up that statement, it highlights a hugely significant issue. We are urging the government to keep up the momentum of that idea and to explain Fighting industry’s corner 40 www.bfpa.co.uk Jack Semple, Secretary, EAMA, considers some of the current dominant trends within engineering and manufacturing. Jack Semple: “A responsible attitude to the environment can be a major component in attracting younger people into industry.”

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