INTERVIEW


creating the highest levels of innovation and productivity so that we can continue to produce in our factories here,” he says. “It’s important that other places don’t outsmart us as


you don’t want to end up with a situation where you’re experiencing closures and downturn so yes, there’s a real responsibility to stay ahead. “However it goes beyond that. Our responsibility is of


course our factories but it is also - for example through our involvement with the Made Smarter review - to input on how, as a nation, we can seize this opportunity of the new digital manufacturing revolution, not just to protect the manufacturing assets we have here but to see it as a way in which we can create many more manufacturing technologies here in the UK to support the sector.” The Made Smarter review - an industry-led review


exploring how UK manufacturing can maximise benefits from the use of digital technology through a collaborative industry and Government partnership – was led by Juergen. A number of recommendations were made but it is two


in particular that, he feels, are particularly pertinent. “There are recommendations in the review that are key


and they revolve around skilling, and here the issue is two dimensional,” suggests Juergen. “On one hand it is about skills at entry level such as


universities and making sure our future workforce have the skills in the right areas however, although there is a lot of work to do, this is something I am less concerned about. “The bigger challenge is the need to upskill our existing


workforce. There are around three million people working in the manufacturing industry today and there’s a lot of effort that goes into making sure these people feel confident and comfortable. I don’t think these people are going to become the absolute digital natives, neither am I, but we all need to be absolutely clear about what these technologies are, what the opportunities are, how to embrace them and be able to manage the change around them, so it is a big challenge ahead.” The future success of manufacturing and engineering in


Britain cannot be left to the public or private sector, or a selection of influential large organisations, alone. Collaboration is going to be key in determining how the opportunities and challenges are embraced and negotiated, a view Juergen supports. “The link is massively important, which is why I was


delighted to be able to lead on the Made Smarter review, because the review is recommending very strong public and private partnership in terms of supporting the skills agenda and, importantly, how companies – especially SMEs – get involved in these technologies. “There is a massive opportunity for local supply chains


and new digital technology companies that are in the space of data analytics, simulation, augmented and virtual reality, or it might be companies that are getting involved in the integration of robotics - these are all opportunities for brand new companies to be formed around cluster, be that railway, automotive or other types of manufacturing. “Here we need to provide better technology


demonstrators and provide ecosystems where companies can learn and understand what new technologies could mean for their operations and what the data and analytics may mean. All this needs to be available and it does need some public funding to make that work.” “Collaboration and ecosystems are


crucial and is something we at Siemens are learning – we have moved from a world where a lot of our IT and technology was created from within to a world where, quite frankly, it is so fast-moving with so much going on that you can’t possibly have all the IP and ideas inside. These days it is arguably less about having the ideas to improve your manufacturing internally, it’s about getting out there and engaging with other organisations within the


38 business network April 2018


ecosystem that you can learn from.” One area that manufacturers of all sizes will have a firm


eye on is Brexit and the uncertainties that surround the UK’s impending withdrawal from the European Union. On this subject, Juergen is both clear and pragmatic. “I see the Industrial Strategy, and the future of


manufacturing, technology and innovation, as an antidote to Brexit. We’re going to exit the European Union, it is happening. We know it is complex and that we still need to work out how we’re actually going to be trading. Whatever the outcome, there is going to be an increasing cost to traders. We want trade to be as frictionless as possible but it is not going to be the same as it was inside the Single Market and the Customs Union, so there is going to be a cost to British manufacturing. “My view is that rather than having this circular debate


we’re having, let’s get the best deal and accept that it is going to cost us money and then at the same time make sure we invest even harder in order to offset that increased cost for us to continue to be globally competitive.” So in an ultra-competitive world, how well placed is


Britain to take advantage of the manufacturing revolution and, equally, is it in a position to negotiate the challenges that will undoubtedly occur? Juergen is optimistic, but there are caveats. “It’s massively competitive out there but what we really


have going for us is that the manufacturing we do in the UK is highly innovative and we punch above our weight. “The fact is we need more of it and one of the things we


haven’t done over the past few decades is talk about the importance of manufacturing and we need to fall back in love with the sector. I talk a lot about the creation of things because sometimes we all think of manufacturing as the product, such as the car, but around all that it is about the creation of virtual things such as simulation and software, it’s all hugely important and exportable, so we need to see manufacturing as much more important as an industry and to the economy than many people would think. “We also have brilliant universities and brilliant R&D and


we’re doing great things in areas such as artificial intelligence. Where we need to work harder, and where we’re not necessarily as good, is adopting technologies into companies at a fast enough pace. That’s to do with our mojo, our confidence, skilling and the fact that we don’t provide the best support mechanisms for SMEs to enable them to be confident enough to de-risk these technologies in an offline environment before implementing them in their own manufacturing operations. “We’ve moved the conversation on in the last decade. A decade ago people were unsure about


the merits of an industrial strategy and some argued that it may not be Government’s role to intervene but we’re in a much better place now. There’s still work in progress and we’re still working out how we can best get out there and support companies to invest more in advanced technologies. The revolution is starting, but it hasn’t matured yet.”


TOP: Siemens employs 15,000 people in the UK


ABOVE: The UK is renowned for its innovation


‘What we really have going for us is that the manufacturing we do in the UK is highly innovative and we punch above our weight’


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