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News Industry Comment SME manufacturers expect rise in production


Business sentiment among the UK’s small and medium-sized manufacturers rose for the first time since mid-2011, and orders and production are expected to grow solidly over the next quarter. In the CBI’s latest quarterly


The skills shortage is a serious threat to the future of manufacturing and addressing it is vital to allow UK firms to stay competitive and contribute to economic growth.


Recently I’ve read quite a bit on the hot topic of apprenticeships and it’s good to hear about more and more schemes coming to the forefront. Some of these include:


• Compressor company Atlas Copco said that its apprenticeship scheme is helping it to maintain high standards or compressor engineering excellence. • Pera Training, a UK provider of manufacturing apprenticeships also recently announced the launch of the first phase of a new higher apprenticeship to help address the severe skills shortage in R&D. • Prime Minister David Cameron recently spoke on the government’s plan for creating apprenticeships at a training provider in the logistics sector. Skills for Logistics has to date seen 25,000 individuals graduate with apprenticeships.


Now that the government is promising to cut red tape and provide funding to employers; and with training providers working in partnership with employers, the path to closing the skills gap is smoother and clears the way for UK firms to get involved and play their part. Heather Ramsden - Editor


SME Trends Survey, which had 356 respondents, a balance of 22 per cent said they were more optimistic regarding the business situation in the three months to April. This figure represents the first rise in sentiment in a year. In the past three months the volume of total new orders rose modestly, and faster growth is expected over the next three months, driven by upturns in domestic and export order growth.


Output was broadly flat for the second quarter running, but, like orders, is expected to see a signif- icant increase in the next three months. Similarly, SMEs also expect to increase employment in the next quarter, having held headcount steady in the three months to April. With sentiment recovering, firms are raising their investment intentions. Respondents plan to raise capital expenditure in the year ahead compared to the past 12 months, with investment intentions for plant and machin- ery turning positive for the first time in a year. However, eco- nomic uncertainty continues to be a factor influencing sentiment.


ABB investment in teaching facility


ABB has invested close to £1 mil- lion and signed a 10-year agree- ment with Imperial College London to support a new carbon capture pilot plant teaching facil- ity located at the university’s central London campus. ABB’s investment and involve- ment in the project signals the company’s commitment to shap- ing the next generation of indus- trial engineers.


Using a combination of ABB’s instrumentation, drives, motors and process automation equip-


ment, the control room provides students with hands-on experi- ence of pilot-scale industrial plant operations and is said to be the only facility of its kind in an academic institution in the world. The pilot plant will be used in undergraduate teaching with the aim of equipping stu- dents with the practical skills needed for a career in industry. The agreement between ABB and Imperial gives the university access to the most advanced con- trol and instrumentation technol- ogy available as well as life cycle services and support for the installation. In return, ABB has access to the carbon capture pilot plant for its own use and will use the facility for customer demon- strations and training. www.abb.co.uk


Last chance to get award entries in Events


The Energy Event 11-12 September, NEC, Birmingham www.theenergyevent.com


Recycling & Waste Management 11-13 September, NEC, Birmingham www.rwmexhibition.com


Sensing Technology 25-26 September, NEC, Birmingham www.sensingtechnology.co.uk


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Businesses have just over three weeks left to apply to take part in Manufacturing Excellence 2012, the UK-wide business improve- ment programme which not only identifies and celebrates out- standing UK manufacturing busi- nesses but can also help companies improve.


Applications to take part in the programme, which offers up to £20,000 of free consultancy, must be submitted by 1 June 2012. Philippa Oldham, head of manufacturing at the Institution of Mechanical Engineers said: “Manufacturing Excellence is a fantastic opportunity for busi-


nesses to show off their expertise and improve their practices in order to succeed.


Manufacturing Excellence works with all manufacturing businesses, whatever their size, age, sector or area of expertise. Awards presented include Best Manufacturer, Best SME, Business Development and Change Management; Customer Focus; Financial Management; Innovation in Products and Processes; Logistics and Operational Efficiency; Partnership with Education; and Most Improved Company. www.mxawards.org


Although SMEs expect export orders to rise, concern about polit- ical and economic conditions lim- iting export demand has continued to pick up. Nonetheless, orders and sales have fallen back as a factor likely to limit output in the coming quarter. Lucy Armstrong, chairman of the CBI’s SME Council, said: “Small and medium-sized manu- facturers are feeling more opti- mistic for the first time in a year. “Indeed, firms expect orders and output to rise strongly in the coming quarter and plan to invest more in the year ahead, pointing to growing momentum in manufacturing activity.” www.cbi.org.uk


ESAB demobus is touring UK


The ESAB Demobus will be tour- ing the UK in June showing all the latest technology in welding and cutting from ESAB.


The Demobus is a mobile demonstration unit that travels around Europe throughout the year. It gives visitors the opportu- nity to see the world of welding and cutting all under one roof. On board ESAB display an extensive range of welding and cutting products including the latest development in MIG, TIG and MMA welding machines, automation equipment, welding consumables and personal protec- tive equipment and welding accessories. New products on show will include the OrigoMig 4004i/5004i and AristoTech weld- ing helmets. There will also be live welding and cutting demon- strations of MIG, TIG, MMA and Plasma cutting products. Technical experts from ESAB will be on hand throughout the tour to discuss all aspect of weld- ing and cutting.


Products for Offshore and


Repair, and Maintenance prod- ucts for quarry, recycling and construction. For information on tour dates call 0800 3893152. www.esab.co.uk


MAY 2012 Factory Equipment


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