DAC February 2022

NEWS n 5 Skills and costs are now the main worries for UK manufacturers MORETHANHALFOF UK manufacturers say that their biggest challenges have changed over the past 12 months. According to a new survey by Make UK and PwC, almost six in ten (58%) now see access to labour seen as being the biggest risk they face, with almost 90% being worried about losing skills not only from their own businesses, but from the entire manufacturing sector. Their second-biggest concern is over inflationary pressures. Despite this, Britain’s manufacturers are positive about their growth prospects for 2022, and have more confidence in their own companies than in either the UK or global economies. Almost three quarters of companies (73%) believe conditions for the manufacturing sector will improve in 2022, with a similar number believing the opportunities for their businesses outweigh the risks. Furthermore, almost two thirds (63%) of companies feel that the UK is a competitive location for manufacturing, with just 13% believing it is uncompetitive. For more than two thirds (67%) of UK manufacturers, up- skilling or retaining existing staff is now their top priority, followed by new product development (60%) and investment in capital equipment (54%). Almost half (45%) of companies say they intend to invest in apprenticeships during 2022. The survey shows that more than a third of companies (35%) are planning to tackle supply chain problems by using UK-based rather than international suppliers, while almost a third (31%) are planning to re-locate at least part of their production back to the UK. The 2022 Make UK/PwC Senior Executive survey is based in responses from 228 UK manufacturers collected last November. Make UK says that manufacturing expanded by 6.9% in 2021, but is predicting that growth will more than halve to 3.3% in 2022. One year on from leaving the EU, just 5% of UK manufacturers are reporting that it has been beneficial to their businesses, with 66% saying that Brexit has hampered their activities, either moderately or significantly. More than half (56%) fear a further impact this year from customs delays due to import checks and changes in product labelling. But almost 40% of UK manufacturers expect their exports to the EU to increase this year – with slightly more predicting that exports to the US will expand. Around a quarter (26%) are expecting growth in Asia, and 21% in the Middle East. However, for 10% of companies exports to the EU will see their biggest drop during 2022. The survey also reveals an increasing drive towards“net zero”emissions among UK manufacturers with 49% of companies saying they plan to invest in green technologies or energy efficiency measures during 2022. One third report that their investment in this area has already increased. “It’s testament to the strength of manufacturers that they have emerged from the turbulence of the last couple of years in such a relatively strong position,” says Make UK CEO, Stephen Phipson. “While clouds remain on the horizon in the form of rapidly escalating costs and access to key skills, the outlook is more positive for those that remain adaptable, agile and innovative. “To build on this,”he adds,“we now need to see a Government fully committed to supporting the sector at home and overseas. This requires more than a Plan for Growth but a broader industrial strategy that sets out a long- term vision for the economy and how we are going to achieve consistent economic growth across the whole country.” “It’s testament to the strength of manufacturers that they have emerged from the turbulence of the last couple of years in such a relatively strong position” www.drivesncontrols.com February 2022 TE CONNECTIVITY HAS acquired Phoenix Contact’s force-guided narrow safety relay (NSR) technology as part of a long-term partnership agreement between the companies. TE will assume responsibility for manufacturing and marketing the PSRmini single-pole NSR relays, as part of its focus on bringing miniaturised systems and advanced safety technologies to the market, especially for robot, PLC, elevator and servodrive applications. “As the industry continues to shift toward more advanced automation technologies, operator safety has easily become one of the most critical issues facing our customers today,”says Vish Ananthan, senior vice- president at TE and general manager of its industrial business.“The addition of the NSR product line underscores our commitment to this vital need and to providing much needed space savings as our customers manage the dramatic increase of signal, power and data in the modern production environment.” Phoenix Contact launched its PSRmini range of narrow safety relays in 2015. They were among the smallest relays on the market. To achieve this level of miniaturisation, the company had to develop innovative methods and technologies for both product engineering and production processes, resulting in a large number of patents. TE Connectivity acquires Phoenix Contact’s safety relay line Only 5% of UK manufacturers are seeing benefits from Brexit Source: Make UK / PwC Executive Survey 2022