March 2020

COMMENT n THE GREENING OF UK MANUFACTURING? A new survey of UK discrete manufacturers conducted by Sage, the supplier of accountancy software and cloud business management systems, paints one of the rosiest pictures of the sector in recent years. According to the report* on the online survey of senior managers at 202 UK manufacturers employing 2,500 or fewer people, these SMEs are embracing sustainable practices and adopting advanced technologies with such enthusiasm that they could propel the UK from being the world’s eighth-largest manufacturer to fifth position as soon as 2021! It’s hard not to be a bit sceptical about these findings, especially as the survey was conducted last October when the UK was still mired in uncertainty over Brexit. Most other surveys of UK manufacturers at around that time were far more gloomy about the prospects for the sector. Also, of course, the survey took place long before anyone had heard of the coronavirus or its potential impact on the global economy. But there have not been many recent surveys focussing on the attitudes of the UK’s SME manufacturers to hot topics such as sustainability, “servitisation”and digital transformation, so it may be worth taking a closer look at the findings. One startling finding is that almost all (96%) of the manufacturers surveyed say that they have been impacted by green manufacturing trends with 79% reporting that they have adopted“circular economy” strategies to eliminate waste and to recycle resources. Of those that are transforming to greener businesses, the bulk (75%) say they are still on the journey, with 16% reporting they are near the end, and 2% declaring they are already there. The Sage survey also included smaller numbers of manufacturers from other countries (the US, Canada, France, Germany and Australia), and comparisons suggests that UK SMEs are ahead of their rivals in going green. So, while 40% of the UK firms said they were taking steps to reduce their carbon footprints, just 24% of North American manufacturers, 35% of EMEA businesses, and 38% of those in Australia were doing the same. According to the survey, the UK SMEs are equally enthusiastic about adopting digital technologies, with 73% already using cloud-based applications, compared to a global average of 60%. On the other hand, 60% of the UK SMEs admitted that they were finding it“challenging” moving to the cloud. In terms of advanced technologies, artificial intelligence and machine learning are the most widely being adopted so far, with 54% of the manufacturers saying that they are already using them or are planning to. This is followed by robotics (51%) and the Internet of Things (42%). Asked why there were pursuing IIoT strategies, 78% of the UK respondents said it was to enhance their operations and optimise their costs, 76% were hoping to improve customer satisfaction, 57% were looking to generate new revenue streams, and 51% were aiming to make their employees happier. It would be nice to think that UK SME manufacturers are at the cutting edge of the green and digital revolutions but, given their many other concerns at present, it’s hard not to take the findings of this survey with a pinch of salt. Tony Sacks, Editor * The report, Discrete manufacturing in a changing world can be downloaded from www.sage.com/uk/discretemfgreport. Electric Motors Electric Motors Contact Adrian Hall – +44 (0)7795 574412 or email adrian.hall2@btinternet.com www.carpanelli.co.uk or www.carpanelli.net Now BREXIT is done are you ready for the American market? Standard IEC & NEMA Motors Special Motors Our products are 100% MADE in ITALY Exceptional Quality, Service & Reliable delivery Small or large batch sizes European & International Standards Motors for Air Handling Speed to 20,000 rpm Special long shafts Special Applications Loose Stators & Rotors, Hollow shaft for pumps, Brakes, Blowers, Rain Cowls Motors for Food Machinery Mixers, macerators, meat cutters, potato peelers, etc Also STAINLESS STEEL

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