November/December 2020

COMMENT n NAVIGATING THE ROAD TO RECOVERY As we enter what could be the most difficult phase of the pandemic, there are mixed signals about progress being made on the road to recovery for manufacturing in the UK. The recent news on the remarkable progress being made with vaccines has been a fillip, but a batch of surveys of the UK’s manufacturers suggest that recovery could still be some way off. The latest Purchasing Managers’Index published earlier this month painted a picture of a slowly recovering manufacturing sector, buoyed by increasing demand from both the domestic and export markets. New orders from overseas were rising at the fastest rate for 2½ years – however, much of that was a result of Brexit stockpiling. A few days later, the CBI published the results of its quarterly survey of 285 SME manufacturers which revealed that new orders had stabilised compared to the previous quarter, and that the SMEs expected output to grow“at a solid pace”in the coming quarter. They even expected employment in the sector to rise“modestly”. Another recent survey – this time by the Make UK, the organisation that represents UK manufacturers – found that more than a third of UK manufacturers (36.8%) believe it will take them at least 12 months to return to normal trading, with just over a quarter (26.8%) thinking it will take 6–12 months. Another quarter (26%) expect to be operating at full capacity by the start of 2021 – a bigger proportion than you might expect. Make UK conducted the survey to back up a new economic action plan that, it says, could help industry to steer a path through the Covid crisis. It believes that the three-point plan, called Prepare, Implement, Lead , will help place the UK on an equal footing with its international rivals. To improve skills and create jobs, Make UK suggests that the Government should: n introduce an amnesty on NI contributions and other employment taxes; n establish a National Skills Taskforce to help redeploy skilled engineers and technical workers who have found themselves unemployed; and n reform the Apprenticeship Levy to help arrest the decline in new starts. To boost investment & innovation, the Government should also: n double the r&d tax credit and make it more accessible to SMEs; n extend the temporary increases in investment allowances due to finish at the end of the year; and n roll out 5G immediately across all parts of the UK. And finally, to mitigate cash flow challenges and sustainable debt management, the Government should: n waive business rates immediately for the manufacturing sector and reduce the costs of business rates in the long run; and n introduce financial instruments that allowmanufacturers to manage their debt sustainably. According to Make UK’s CEO, Stephen Phipson, what manufacturers need is “a clear strategy that ensures we prepare, implement and lead from the start to prepare for the long-term. Businesses need as much certainty and stability as possible during these challenging times.” Manufacturers certainly have their work cut out navigating the dual uncertainties of Covid-19 and Brexit. But if they can do so, we might be celebrating a more traditional Christmas this time next year. Tony Sacks, Editor BLH Series Oriental Motor (UK) LTD www.oriental-motor.co.uk – in fo@oriental-motor.co.uk – 01256 347 090 EZS Series AZ Series CVK Series BLE2 Series KIIS Series DGII -Serie KIIS Series AngleGearboxes STEPPER- MOTORS BLDC MOTORS AC MOTORS ACTUA- TORS We have the solution. Position. Transport . Rotate ORIENTAL MOTOR Food Packaging Solutions A key market for Oriental Motor is the food packaging industry. Production lines often have several different machines from individual specialist manufacturers purely to package food for shipping. Oriental Motor’s technological ability and capabilities means they can supply motors for the whole production line. Despite precise portion control at the filling stage, product trays are checked again for portion size and quality control. With precise torque monitoring, brushless DC motors are ideal for checkweigher conveyor systems. With IP66 ingress protection as standard, these motors are perfect where production line washdown is required. Once filled, food trays are passed through metal detectors and scanners to eliminate the risk of contaminants. Fixed speed high efficiency AC motors (also with IP66 protection) suit this kind of conveyor system. For more information about Oriental Motor’s food packaging solutions, call the Oriental Motor team on +44 (0)1256 347090 .