Failure to prioritise resource efficiency is costing UK billions N
ew report details how UK manufacturers can improve
non-labour resource productivity and cut costs without significant capital investment - yet many are failing to grasp this key opportunity, says Martin Chilcott. Manufacture 2030’s founder
Martin Chilcott, has called on manufacturers to pay closer attention to resource efficiency, highlighting that manufacturers are failing to tap into the potential to boost their competitiveness and non-labour resource efficiency. Ahead of the launch of Manufacture 2030’s own report, Resource efficiency: a missed opportunity in manufacturing, Chilcott has warned manufacturers that if they don’t adapt their strategies soon, there will be no chance of reducing the 36 per cent of global CO2e for which the sector is currently responsible.
Chilcott argues that for the UK
to boost productivity at a time of low capital investment in machinery and automation - due in large part to Brexit uncertainty - a focus on non-labour resource efficiency could be the answer. He believes that it represents perhaps the biggest missed opportunity in manufacturing today. With energy prices set to rise
steeply between now and 2020, manufacturers can expect an increase in production costs from energy alone. Add to this fluctuating materials prices, the rising cost of water and waste management, and the fact that the proportion of in- put costs from energy is rising as factories become more automated and the forecast for the industry becomes even more challenging. These trends, combined with the findings from Manufacture 2030’s report, which shows that over a
third of manufacturers do not set energy efficiency targets and so have no means of measuring improvement, are the backdrop to a sector that needs to act now to reverse its decline in productivity and competitiveness at a time of great uncertainty. Chilcott, commented: “The UK
industry average for resource efficiency is a paltry one per cent, well below the seven per cent best in class gains available. We know most factories don’t have the capacity, knowledge or tools to manage the small actions needed to improve. Yet, according to Cambridge University’s Institute for Manufacturing, improving resource efficiency could save UK manufacturers £10 billion. The good news is that resource efficiency doesn’t require significant capital expenditure, so it could be prioritised even during
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FUTURE ROBOTICS DEBUTS TO EXHIBITOR PRAISE F W
elcome to the November issue of Factory
Equipment, I can hardly believe this is my last issue of the year. 2018 has gone by in a blur,
and it has been wonderful getting to know this industry. 2019 is set to have its challenges with Brexit, but you can rely on Factory Equipment to keep you up to date. I hope you enjoy this issue, and if you are interested in contributing towards a feature in the new year please don’t hesitate to contact me. Merry Christmas & a Happy New Year!
Rachel Tucker - Editor
uture Robotics, the UK’s only independent industrial robotics conference, drew praise from
delegates and exhibitors alike following its successful debut on Tuesday 13 November in The Slate at Warwick University. Launched earlier this year by Datateam Business
Media, the event immediately garnered interest thanks to its unique approach to the topic of automation in the landscape of the UK manufacturing industry. Backed by Automation magazine and the respected
portfolio of Connecting Industry publications as leverage, the conference provided an unbiased, informative and exciting experience for its delegates – featuring a full CPD accredited seminar programme in addition to an exhibition and interactive demonstration area. Ensuring the UK manufacturing remains
competitive on a global scale is imperative but requires collaborative efforts, as noted by Matt Western, MP for Warwick and Leamington, during the conference’s opening speech: “The industry faces increasing global competition, skilled and unskilled labour shortages and the uncertainty that Brexit may
bring, it’s vital that UK manufacturers examine all the options available to them. It’s therefore good to see events, such as today’s Future Robotics conference and exhibition, addressing many of the issues and concerns that manufacturers may have." Delegates commended the inaugural event for
providing a platform for the answers to imperative questions and an opportunity to explore the latest products and solutions from a stellar line-up of industry names. Visitors noted that it was “superb to have such a focused event” and many made particular reference to the conference’s “engaging speakers” and the collective enthusiasm of all in attendance. The event attracted a range of delegates from both
SMEs and large businesses, some of which have already implemented robotics and saw the conference as an opportunity to hone their existing processes. One such delegate noted that the industry in which they work is quite confined, so an event that featured a number of leading suppliers proved a lucrative opportunity for them to get a concise overview of what is happening in the automation industry.
www.futurerobotics.co.uk
this period of Brexit uncertainty. “Our new report shows that
while manufacturers, in principle, see the benefit of resource efficiency, there is inertia around its implementation. Specifically, the barriers to progress include the perception that there is a risk of disrupting production, a lack of knowledge of what to do, no, or poorly communicated targets, weak cross company co-operation and insufficient time. To affect tangible change, factories need to move from solely focusing on a few large capital projects, to including the systematic management of the hundreds of small, inexpensive adjustments that can drive continuous improvement. Achieving this shift could allow UK manufacturers to make substantial improvements to their profits, productivity and competitiveness.”
4 NOVEMBER 2018 | FACTORY EQUIPMENT
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