December 2021

News 10 | Plant & Works Engineering www.pwemag.co.uk Annual Buyers’ Guide 2022 As this issue comes out until a few weeks ago it seemed a near certainty that the Bank of England would be raising interest rates this week in response to the increasing inflation everywhere you look in the economy. According to the latest Q4 Make UK survey record numbers of manufacturers are raising prices in the face of strong inflationary pressures which show little, if any, sign of abating. The balance on UK prices rose from a balance of +50% in Q3 to +52% in Q4 with an expected increase to +58% in the next quarter, these are the highest balances in the survey’s history. And, to give an indication of just how sharply inflation has bitten and, how manufacturers have responded, the equivalent balance in Q4 2019 before the onset of the pandemic and leaving the EU was just +5%. A similar picture exists for export prices where the balance rose from +43% to +51% and is expected to remain at that level in the next quarter. By contrast, the balance in Q4 2019 was -7% showing that just two years ago more manufacturers were cutting prices on exports than raising them. The reasons for companies having to raise their prices are well documented and have provided a potent cocktail of factors in the last couple of years. Supply chain shortages of both raw materials and components, increased transport and energy costs not to mention the rapid rebound in demand from the brutal fall in output in the Spring and early Summer of 2020. For the moment these pressures show no signs of abating and anecdotal evidence from companies increasing their prices by 10% with no kickback suggest that such price increases are becoming built in. As we leave 2021 and enter 2022 the question for policymakers is how to deal with such pressures while the economic outlook remains so uncertain given the emergence of another variant which might, in the short term, do the Bank of England’s job by slowing growth. One thing is certain, however, is that such uncertainty will remain for quite sometime providing manufacturers with a continued challenge. However, if the last couple of years has taught us anything it is quite how resilient and adaptable the manufacturing sector is. As we leave one year behind and begin another let’s hope for brighter times ahead. By MAKE UK chief executive, Stephen Phipson MAKE uk - the manufacturers’ organisation monthly news comment in the 80’s and was President of the AEMT twice in the 90’s. At the turn of the millennium Tim became secretary to the association on a part time basis, which very soon became a full- time job. In the 20 years since, the association has grown from strength to strength, and has become a global association representing, promoting, and supporting members from all over the world. It built up a strong pool of reserves under his stewardship which has enabled the association to weather the turbulence we faced last year. He has been convenor of the standards committee which brought us the new and completely overhauled repair standard for rotating machinery; the first standard to mention the circular economy and the importance of considering a repair over a replacement. A number of emerging trends that the UK manufacturing sector must embrace to deliver growth in 2022 were revealed at Fanuc’s recent Open House. The event, which drew over a thousand professionals from across the industry, highlighted a number of key factors that will underpin the future success of manufacturing. One of the key discussion points throughout the week was machine connectivity, or IIoT (Industrial Internet of Things). While not a new concept, manufacturer engagement with the technology is increasing. This can be attributed to a number of factors, not least the improvements in IIoT that ensure it is both more sophisticated and user-friendly for businesses. Tom Bouchier, Managing Director at Fanuc UK, commented: “IIoT has been around for a number of years, and we are now at a stage where the technology is powerful enough to make a real difference to operations, while at the same time being simple enough to use effectively. There is also an element of COVID and its associated challenges highlighting the power of intelligent use of data, in optimising processes and improving overall efficiency. “It’s all about getting the most out of your factory, whether it is floor space and equipment, or ensuring your workforce is as productive as possible. This means automating labour-intensive, repetitive processes, and getting feedback from your machines to develop efficient, coherent processes. That’s where IIoT has a major role to play.” The other key topic to emerge from the Open House was the potential opportunities for SMEs (small and medium-sized enterprises). Conversations surrounding the barriers to automation repeatedly revealed that smaller manufacturing businesses stood to gain the most from implementing it into their production lines. The compact nature of the latest automation technology, combined with the availability of turnkey systems, opens it up to operations of all sizes, regardless of how automation-literate they may be. There is also the macro-trend of customisation – whereby manufacturers are increasingly required to be flexible in their output in order to meet demands for bespoke / low-volume production runs. This positions SMEs at the heart of industry growth, and illustrates the importance of ensuring funding is available for smaller businesses to realise their potential. Tom continued: “UK manufacturing has always been strong in delivering high-quality outputs at scale. This is something that will continue long into the future, and we’ve already touched upon the potential benefits these types of businesses will see through IIoT. “However, it also became clear over the course of our Open House that there is massive room for growth amongst SMEs. The productivity gains associated with the implementation of automation – whether it’s an entire process or a more piecemeal approach – will significantly boost the outputs of a smaller manufacturing business.” 2022 manufacturing emerging trends revealed