COMMENT October 2022 Automation Smarter solutions for industrial efficiency automationmagazine.co.uk October 2022


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Onwards and upwards


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usiness performance experts firm, Ayming, has released its fourth International Innovation Barometer, based on a survey of 850 senior executives and R&D directors in the manufacturing sector. The survey focused on energy costs, which are predicted to rise 50% this year, according to the World Bank, presenting great risks for companies, including the collapse of thousands of UK businesses.


The Ayming report highlights the ways many businesses are taking steps to minimise this damage, primarily by cutting costs and turning to new materials and techniques. Nearly 80% of firms have already been forced to make changes to counter rising energy bills, with some 25% of them describing the changes as radical.


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This has also brought into sharp focus the need to invest in sustainability, from which firms expect significant cost benefits. Nearly half (46%) the surveyed firms are looking for energy efficiency savings, with 37% investigating alternative energy sources – especially renewables. Looking to new alternatives affects product composition, too, with some 30% of surveyed companies searching for alternative materials that don’t rely on fossil fuels. For the year ahead, inflation is expected to place a major strain on companies’ R&D budgets – with over half of the companies surveyed citing it as their greatest concern. Profitability will also be hit hard, with 80% of the firms expecting rising energy costs to affect their profitability, more than any other sector.


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Regarding supply chains, over 30% will aim to source materials locally, with another 30% looking to optimise their logistics. However, these changes often require vast upfront investments, and at a time when profits are being squeezed from inflation and lack of consumer spending, manufacturers will struggle to juggle investments with costs and profits. When asked about government funding, some 51% of the surveyed manufacturing companies believe they receive enough to negotiate the crisis, which largely consists of R&D credits, subsidies and grants. However, many also expect the government to step up by funding projects related to reducing their carbon footprint.


Stella Josifovska Editor


Editor


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