roundtable
single business in the UK that gets a full bill of health when they are penetration tested, so it is really important to be doing things now that mitigate risk.”
Watts said his company did not have a highly-connected IT infrastructure within our manufacturing processes but he recognised that cyber security was a challenge for any business today.
Cyber threats were constantly changing, so Jeffers advised regular IT checks and updates – “keeping up to speed with what is out there.”
The geography of the fourth industrial revolution would not be national, international or global but based in cyber space, Murray highlighted.
Arnott mentioned the national Cyber Security campaign her firm is currently running. As traditional sectors move into digital technology to remain competitive, there needs to be education about these new technology risks. “Most manufacturers that have introduced digital technology now have annual penetration testing, but they didn’t used to.”
Professional services firms have dual obligations to provide cyber security for their own business plus client data, Knight noted. “We have to be really savvy because people are becoming more sophisticated about trying to get hold of personal data.”
Barrington reminded the roundtable that 93% of data protection breaches result from human error – passwords left on desks, laptops on trains, mis- emailing, being scammed. “We are at this collision point between the digital and real world, and we are still the weakest link.”
Knight: “We have been drilled in security because our business cannot afford to get things wrong, but employees in other business sectors have not, and awareness needs to be widespread.”
White: “This is an important topic and we must keep banging the drum.”
‘Keep calm and carry on’
That was the advice from Knight
as the Roundtable discussed the post-Brexit scenario. “The winners will probably be those who are willing to be bold but calm, and carry on with their business”
There have already been export winners and import losers in various sectors but a form of normality will return at some point, said White. “My concern is about the millstone of uncertainty and those delayed business decisions.”
Jeffers said the rest of the world was also uncertain, waiting for the UK to enact Brexit.
“Businesses need to remain positive and push on with plans as best as they can, rather than wait for two years.”
Knight: “The jury is still out for most of our clients.” Media over-reaction to government announcements, and the pound falling to record lows would ‘freak people out’, creating uncertainty and stagnation. “It would be so good if the media would just support government and business by reporting the reality.”
While the weak pound was good for his company’s exports, EU sales were very important to HS Butyl. “We are moving into an interesting environment,” said Watts.
Personally, he felt: “The UK should drive on, under a credible leader. We need to act like professionals and get on with our business.” People over-react and markets will come back, he added.
One challenge was whether foreign investors would continue to invest in the UK.
Arnott confirmed that the Brexit vote had caused “a big pause” in business decisions. Although UK activity was now happening, foreign direct investment was still largely on hold. “As a country we need to get the new trade deals done. That’s the biggest uncertainty for manufacturers we approached.”
Brexit had put recruitment on ice for a fortnight, revealed Wiggins, but several employers were still uncertain about taking on European staff and equally European candidates were unsure about changing their jobs.
THE BUSINESS MAGAZINE – SOLENT & SOUTH COAST – NOVEMBER 2016
We also saw a noticeable spike in contract hires being taken on during this period.
Davison mentioned that despite increased manufacturing demand, some companies were taking on staff rather than investing in machinery and technology.
Watts: “You can bring in temporary staff tomorrow; a machine can take six months.”
Davison noted that while many companies had been building their cash reserves, their investment intentions were now softer. The Government making its own investment decisions – on infrastructure such as airports, housing, and broadband – would be beneficial to ease uncertainty.
“To date, the broadband focus has been on domestic customers. The bandwidth that businesses need is already a constraint that will only get more pronounced as we move into these emerging technologies.”
White mentioned a client that is self-funding a six-figure broadband infrastructure project, because of the 10-year delay waiting for government support for businesses.
Davison said the Government’s continuation of R&D credits, Patent Box and Catapult Centres would send out the right message to firms seeking to invest in technology. Those who invest now could well be best placed when the uncertainties of Brexit are over.
Mike GawthorneJoe Jeffers
Benjamin Wiggins Mike Gawthorne
David Murray
* The 2016 MHA Manufacturing and Engineering Survey is a report produced annually by the leading association of independent accountancy firms, MHA and has been providing an insight into the sector over the past five years. The results of this year’s survey reflect the fact that the UK has opted to leave the EU, with all that entails, as it was launched after the referendum result was declared.
If you would like a complimentary copy of the report, email:
kate.arnott@
mhllp.co.uk or visit
macintyrehudson.co.uk
SOUTHERN MANUFACTURING
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