Plant & Works Engineering July/August 2022

News 0 8 | Plant & Works Engineering www.pwemag.co.uk July/August 2022 At the beginning of the year we published our Executive Survey 2022 report, in partnership with PwC. So how does the situation look for manufacturers now? The first of the external shocks manufacturers have faced this year has been rising energy prices. Events unfolding in Ukraine, as well as a global increase in demand for energy, has driven up the prices of wholesale energy costs – electricity and gas – and consequently the cost of doing business. Not only is this impacting energy intensive industries, but it is also impacting manufacturers across the board. The second challenge manufacturers have faced is increased inflation. Once again manufacturers saw early warning signs, and as a result, over half flagged significant upward pressure on input prices as a key domestic risk for 2022. Manufacturers have seen steep increases in input inflation of up to 18.6% as the raw material shortages continues. Against this backdrop, input inflation is feeding into consumer inflation and manufactures have seen price margins squeezed once again this year - all of which is impacting manufacturer’s ability to meet and fulfil their orders. Workforces continue to be a core focus of manufacturers’ plans for 2022 with employment intentions remaining high, however, wage inflation is beginning to bite. On average manufacturers settled their pay increases at 3% in January, however many are reviewing this mid-year and offering up to 5%. Competition for talent is becoming fierce and retaining staff so that manufacturers can win, and fulfil orders is a top priority. Increasingly manufacturers are looking beyond pay to wider offers to attract and retain talent – this includes offering greater flexible working, as well as one-off bonus payments. It is clear that those who can retain talent in their businesses can ride the choppy waters in the remaining half of the year. A myriad of external shocks in 2022 have also meant global supply chains are still in recovery mode. As a result, soaring transport costs, increased lead times and difficulties accessing raw materials are turning ‘just in time’ manufacturing to ‘just in case’. At its peak, 76% of manufacturers said they had been adversely impacted by increased transportation costs, with shipping container rates hitting $20,000 earlier in the year. To spread the risk, the Make UK / PwC Executive Survey 2022 found that almost one quarter of manufacturers are reviewing and/or shortening their supply chains after having astutely learnt valuable lessons about vulnerabilities and resilience in recent years. We expect this trend to continue throughout 2022 and into 2023. But to do so successfully, manufacturers need to prioritise visibility of their supply chain. This is the key to building resilience and agility. MAKE UK - the manufacturers’ organisation monthly news comment By MAKE UK chief executive, Stephen Phipson AVEVA Select Partner for the UK & Ireland SolutionsPT is supporting primary schools in the Manchester area in a bid to increase awareness of engineering among school teachers and their pupils. The support, announced on International Women in Engineering Day 2022 (June 23rd) demonstrates further the company’s commitment to the engineering sector in a month where it was recognised by ‘Best Companies to Work For’ for a 12th consecutive year. The programme organised by Primary Engineer, introduces engineering into a classroom that would otherwise not cover an engineering subject. It trains school teachers to engage with pupils about science and design. The aim - to encourage whole of class engagement on an inclusive project which encourages boys and girls to work together in the practical application of maths and science. Pupils engage in design technology projects which encourage development of essential skills such as creativity, problem solving and teamwork. Primary Engineer has been working with teachers and pupils across the country since 2005 to develop skills and inspire interest in STEM (Science, Technology, Engineering and Mathematics). The projects provide opportunities for SolutionsPT engineering and technology professionals to support the projects in the classroom with pupils, providing a real-world context to their learning. The culmination of these efforts is a celebration of the childrens’ creations at which engineers from SolutionsPT meet the pupils and act as judges to decide on winning teams and present them with their awards. Sue Roche, general manager at SolutionsPT said: “We love this idea where boys and girls get to simulate a natural workplace by working together as a team to create a tangible output. Then, operating as a team, they can enjoy showcasing the creations at a special event. It’s imperative that we focus not only on encouraging girls into engineering, but also to demonstrate to boys that girls can take pride of place on an engineering team and are just as clever when it comes to engineering”. Dr. Susan Scurlock, founder of Primary Engineer added: “Over the years Primary Engineer has worked with leading organisations to help teachers and pupils understand more about engineering and the exciting opportunities within. We work with teachers so they can deliver our projects whole-class to provide opportunities for all pupils to meet and work with engineering professionals and to identify themselves with engineering regardless of their gender, ethnicity or background. We have seen throughout the programme that the interest in engineering from girls and boys is the same, only years later does a gender gap begin to show. Working with girls at this age allows us to address the stereotypes and allows boys and girls to understand that engineering is a job for boys and girls alike and will encourage them to consider joining the future engineering workforce. Support helps increase engineering awareness