Feature
Manufacturing
revolutionise How tech aims to the manufacturing industry
Mark Minihane, (pictured) tax partner at EY in the Midlands, talks about how technological advancements in manufacturing will help support the transformation of the industry and how Covid-19 has led to greater appetite among businesses to re-evaluate their supply chain and invest in the UK.
global pandemic the manufacturing industry was undergoing a seismic revolution, one which would bring it full throttle into the modern era. For some businesses, Covid has been the
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wake-up call that has enforced these changes and while it’s been a difficult time for all, many businesses have been able to utilise the downtime to undertake necessary adjustments, try new things and in some cases revolutionise their operations. All will be looking towards a very different future, where technology is at the forefront of their business strategies and investments. Higher-quality, advance products and
processes that deliver greater margins are continuing to drive faster and more innovative solutions. Crucial for manufacturers are advances in real time operations, supply chain and logistics, as well as improvement in the metrics of accuracy and production efficiency. Gone are the days when manufacturers would be waiting for something to go wrong before implementing a fix, now they undergo continuous evaluation and investigation, using predictive technology to reduce potential downtime in their operations and their machinery – fixing a problem before it even occurs. However, with the evolution of manufacturing,
comes the need for new skills. Traditional manufacturing techniques are becoming a
58 CHAMBERLINK December 2020/January 2021
rom AI to predictive technologies, manufacturing has changed considerably over the last ten years. Even before the
stalwart of niche businesses, but for businesses operating in a global market, who are mass producers, they must evolve to remain competitive and stay ahead of the technology curve if they are to remain competitive. Manufacturers need to employ a much more diverse range of skills; think computer engineers and coders, as well as technicians to support the smooth running of machines. Greater technological advances also mean that there is more focus on smart robotics and cloud computing, less downtime, more manufacturing time to ensure future system resilience and cost competitiveness.
‘Manufacturers need to employ a much more diverse range of skills; think computer engineers and coders’
The UK remains an attractive proposition for
overseas investors. EY’s latest UK Attractiveness Survey, which tracks the UK’s appeal as a destination for foreign direct investment (FDI), found that 32 per cent of manufacturers surveyed are planning to ‘reshore’ activity to the UK on account of disruption to their supply chain caused by the pandemic. Asked whether they were planning to invest in the UK over the coming year, 25 per cent of investors said yes, reduced from 31 per cent in the summer, but still close to the long-run UK trend over the past
decade and the second highest response since the UK’s 2016 referendum on EU membership. According to the report, it’s likely that Covid-19 has accelerated technology adoption and supply chain redesign – leading to greater possibilities to stimulate activity in the sector. Covid-19 may also have created an opportunity to boost the UK’s manufacturing FDI. Increased trade and geo-political tensions meant that businesses were already revising their supply chain before the pandemic. The process has clearly accelerated with two third of EY’s survey respondents – including 72 per cent of businesses turning over more than £1.5bn, and an overwhelming 98 per cent of manufacturers – say they plan to remodel their supply chains in the future. Among the changes being planned, a move to regional supply chains is on the agenda for 32 per cent of companies and 40 per cent of manufacturers. Respondents are also intending to reduce their reliance on single source countries (30 per cent), a figure that rises to 42 per cent among manufacturers. And, 28 per cent of investors – 46 per cent of manufacturers – are expecting to move to near-shoring. With technological advancements, it’s an
exciting time to be involved in the manufacturing sector. Aside from the obvious, manufacturers must evolve business models, connect products seamlessly and utilise digitalisation, all without losing sight of a customer centric mindset.
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