30 manufacturing


Prioritising innovation is paying dividends


Confidence in the manufacturing sector is on the up, fueling hopes that the industry is leading the UK’s recovery


According to the latest Manufacturing Advisory Service (MAS) barometer, optimism has increased, with 67% of manufacturing SMEs expecting to grow in the next six months – a record high for the national barometer since its launch in February 2012.


It underlines recent economic data and encouraging PMI figures, suggesting an industry upturn. The small and medium-sized manufacturers certainly appear to be leading the charge through improved sales and a greater appetite for creating new jobs.


Experts at Grant Thornton’s Southampton office say the fact these businesses have been putting innovation at the top of their priority lists could be one of the reasons behind the positive figures.


Amanda James, senior manager, said: “The UK as a nation has a strong history of innovation and this has allowed many manufacturers to retain their competitive edge against the likes of China and India, where production costs are understandably lower.


“Help from the Government to support R&D, such as the Patent Box scheme, have made


Amanda James


it easier for UK firms to concentrate on innovation and it seems this is having a real impact on their bottom lines.“


Her words echo further figures from the latest MAS barometer, which show 82% of manufacturing SMEs questioned reported that new products introduced over the past two years had led to new sales, with almost two thirds of these reporting increases in both turnover and/or profits.


Looking to the future, the majority of manufacturing SMEs are expecting staff numbers to either increase or stay the same in the next six months.


However, Grant Thornton warns that there is some work to be done to fill these vacancies if concerns about a skills shortage within the industry are right.


James added: “The manufacturing sector has struggled to shake the reputation it had in the past of dirty factories and being a ’low skill’ job, although much is now being done to improve the image of the sector.


“The lack of STEM-qualified (science, technology, engineering and maths) apprentices and graduates coming through the system is also a big concern. In reality, the manufacturing industry is fast-moving, innovative and technologically advanced, so it is vital to develop and encourage a flow of highly-skilled people into the industry to move it forward.“


The matter of the manufacturing skills shortage was a subject discussed at Grant Thornton’s recent manufacturing round table event at Terravina in the New Forest on September 18.


Details:


023-8038-1100 www.grant-thornton.co.uk


TJ Group turns waste problem into an asset


A waste management specialist near Southampton has launched a new product for use in the building of roads and pavements.


TJ Group, employing 120 people and with a fleet of 80 liveried vehicles, has already sold in excess of 100,000 tonnes of the recycled aggregate to customers.


As well as being trademarked, the Department of Transport has now approved ReclaMix as a type-one primary aggregate replacement. Britain’s Waste & Resources Action Programme has also approved the product, which is made at TJ’s crushing plant at Portfield, Chichester.


Concrete brought in from hauliers across the country is taken to TJ’s new £200,000 crushing plant before being processed to meet intensive industry demand for recycled aggregates.


With the site’s blending capabilities and processes, Steve Grant, the commercial manager at Fareham-based TJ, developed the product for use as a sub-base. He said: “We’ve turned an environmental problem into a benefit, and an expense into an asset, providing a sustainable solution to customers in a world of ever-increasing disposal costs.


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“Utility contractors have a significant waste disposal issue because tarmacadam is commonly not accepted at certain disposal points, although it is inert and very recyclable. ReclaMix is a cost-effective and environmentally-friendly alternative to other sub-base materials and follows months of research and development.“


Sub-bases have an important role in roads and pavements, being the main load-bearing layer. The quality is important to the useful life of the road or pavement.


TJ, which covers from Bournemouth in the west to Brighton in the east and Guildford in the north, already has connections with the road-laying industry. It has two core services, TJ Transport and TJ Waste & Recycling.


As well as Portfield, it operates four sites – Bar End at Winchester, Airport Industrial Park in Portsmouth, Harts Farm Way at Havant and Yapton, West Sussex – at which skip waste is separated, as well as recycling collected in rounds from offices, factories, shops, garages, local authorities and residential and nursing homes.


TJ Group’s Luke Haskell with the firm’s specially- developed recycled aggregate


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – NOVEMBER 2013


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