UKLA President’s Report
It seems like every time sit down to write this column a political event has hit the headlines, first Brexit, then the appointment of President Trump and more recently the announcement that there will be a UK General Election on the 8th June 2017.
The uncertain conditions created by such events does not so far seem to have derailed the manufacturing sector with the weaker £ supporting improved competitiveness of UK exporters. However one slight blip has just been reported. Manufacturing output declined 0.6% in March a higher decline than the 2% predicted by economists, the fall brought year on year growth down to 2.3% from 3.3% the previous month. Nevertheless we still have growth in the manufacturing sector which although the sector only represents 15% of the UK economy it’s a vitally important contributor to the lubricants industry as a consumer of our products.
Some really good news has been the return of a more positive outlook for UK steel production with the recent announcement that Liberty Steel have taken control of the Speciality Steel division of Tata Steel UK, which will create 300 new steel jobs and protect 1700 jobs at 3 major sites in Yorkshire. Specialty Steels produces a range of high-value steels used in the manufacture of vehicles, aircraft, industrial machinery and equipment for the oil and gas industry. Again a strong steel industry is an important consumer of lubricant products not only the industry itself but all the supporting sectors.
UEIL President’s Report
The picture of the European lubricant industry emerging from the UNITI Mineral Oil Technology Congress, which took place in April in Stuttgart, offered many valuable insights into the technical challenges that our industry is facing.
A topic that was discussed was sustainability and the possible impact of the ambitious target set at the Paris climate conference (COP21) in December 2015, when 195 countries adopted the first-ever universal, legally binding global climate deal and agreed that from 2050 on, carbon dioxide emissions shall not exceed carbon dioxide absorption. This agreement will have major consequences on the transportation sector, which is one of the main contributors to carbon dioxide emissions globally.
Many different approaches will likely be followed, including higher tax and toll systems, however new technologies will need to be adopted in order to reach these climate protection targets. One approach will concern fuels, with the replacement of fossil fuels with renewable energy sources such as biofuels. Another important trend will be e-mobility.
The move towards electrical cars is already ongoing and could be accelerated by public policy, as an increasing number of cities are establishing targets for electrical passenger cars. The extent of the impact of e-mobility on the lubricant industry is still to be assessed, and will very much depend on the future development of passenger car electrification. However, it is clear that the lubricant demand, which has continuously decreased over the past decades under the combined effect of deindustrialization and increased energy efficiency, may see a further decline due
As travel round Europe in my role as a Regional Director for Houghton International one of the frequent observations I make is our the skills gap in the UK compared to other parts of Europe in the engineering sector, this is not a comment about competencies as we have some of the leading engineering capability in the world it’s about capacity. We simply don’t have enough people coming through the funnel as people retire. I think it’s true to say also in the lubricants industry finding expertise in particularly in lubricants application is particularly challenging and therefore internal development of talent will continue to be extremely important if our industry is to continue to add value to consumers of lubricants. Of course the UKLA Certificate of Lubricants Competence is a great way to validate the development of industry employees so take the time to look at where this can support your own internal training programmes.
Finally as we move closer to the June 2018 Reach deadline it is obvious that the capacity of third party test laboratories able to provide the vital test data required for registration is quickly hitting its maximum a risk for suppliers and consumers of lubricant products that will soon be up on the risk register reviews in boardrooms across the UK in the coming few months.
Steve Mayo UKLA President
to the impact of e-mobility on engine oil consumption. Car electrification will also pose new technological challenges to lubricant blenders, as new requirements need to be met and investigated.
E-mobility is only one of the challenges that the lubricant industry is facing moving forward. In his presentation about the European lubricant market, Dr Lindemann from Fuchs presented the industry’s outlook for the next decade, highlighting an expected significant reduction in lubricant demand, particularly for metal processing oils, engine oils and gear oils. He also stressed that digitalization will play a major role, and attract different players in the market, small-to-mid companies offering modelling and simulation of tribo-systems and coming in between the relationship between lube manufacturers and customers. In conclusion, according to Lindemann, the traditional lubricants industry will undergo a significant change.
A key success factor for our industry will hence be the capability of identifying the ongoing developments and trends and developing new strategies.
Innovation will be the focus of the UEIL yearly congress on October 25-27 2017 in Bologna, which will offer an excellent occasion to discuss how our industry can be innovative and forward looking.
Valentina Serra-Holm UEIL President
LUBE MAGAZINE NO.139 JUNE 2017
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