April 2019

As we have seen from the negotiating process Brexit is time consuming and means that other issues such as the advancement of UK industry into the 4th Industrial Revolution (4IR) which is rapidly gaining momentum elsewhere, are falling by the wayside. The primary benefit of the technologies of the 4th Industrial Revolution to UK industry is that they can help to improve productivity in firms, an issue that is of utmost importance given the stagnating performance of UK productivity over the past decade. However, despite initiatives in the past few years, such as the government’s Made Smarter review and subsequent funding programmes to increase the adoption of Industrial Digital Technologies within manufacturing, the UK is still behind several international counterparts in metrics for adoption of, and readiness for, 4IR. The truth is, there has never been a more important time for manufacturers to engage in the 4th Industrial Revolution. The UK economy is globalised in nature and there will be an inevitable shift in the way that our economy interacts with others. Many aspects of 4IR can even offer a lifeline to mitigate concerns brought about by Brexit. The manufacturing sector has been dealing with labour and skills shortages for some time now, and the potential loss of the EU workforce has the possibility to worsen this skills gap. The technologies of 4IR, such as collaborative robots (cobots), automation and AI, can help to supplement existing workforces, allowing workers to work collaboratively with technology, particularly on repetitive and low skilled tasks, freeing up time to focus on the more knowledge based elements of their roles. Information gained from sensors in the Internet of Things (IoT) can provide ‘big data’ allowing manufacturers to get further insight into what the most efficient equipment is, increase machine utilisation, and give full traceability to component parts and finished products. This allows manufacturers the possibility of improving their processes and supply chains, and the ability to keep their customers better informed. Whatever metaphor is most apt for the ongoing development in Brexit, the UK has the opportunity now more than ever to take full advantage of the opportunities that 4IR offers. Rather than getting through the global race by focussing solely on trying to jump the Brexit shaped hurdle, it can find its way to the top of the group in 4IR and become the leader of the pack. Either that or a mix of other metaphors that represent a risk to global competitiveness in manufacturing, a continuation of flat-lining productivity levels and the chance of being left behind in the current industrial revolution after being a world leader in the previous three. It’s possible that if we get too distracted by the B word, after it’s all said and done, we may have missed an important opportunity to improve productivity and the economy. By MAKE UK chief executive, Stephen Phipson MAKE uk - the manufacturers’ organisation monthly news comment News April 2019 www.pwemag.co.uk Plant & Works Engineering | 0 9 Labour turnover in manufacturing has increased for the second year in succession as employees take advantage of a buoyant jobs market and skills shortages to move jobs according to the latest annual Labour Turnover survey from Make UK, the manufacturers’ organisation. The data shows that turnover (the number of people leaving companies through resignation, redundancy, retirement or dismissal) rose to 14.4% in 2018, up from 13.2% in 2017. This reflects the buoyant jobs market with high levels of employment and skills shortages which are meaning there are greater numbers of opportunities for highly skilled employees to choose from. The smallest rate of churn was seen by the rubber, plastics and chemicals sector (12.9%) whilst the highest (14.6%) was seen by the metals and other manufacturing sectors. The region with the highest turnover was the South East, including London, at 17.6% which reflects the especially buoyant job market and overall growth of manufacturing in the Region. Companies with 101-250 employees had the largest proportion of employees on the move at 16.4%. Commenting Seamus Nevin, Make UK chief economist, said: “The number of people in work has risen to a record level yet again and Brexit is clearly not stopping firms hiring staff. For manufacturers, in fact, it is the opposite. Investment in recruitment is really the only major area of business spend at the moment. Preparations for potential trade disruption in the event of a No Deal Brexit are in full swing and employers are hiring staff to help them get over the line. “However, while these job numbers are broadly positive we cannot get carried away. The labour market is a lagging indicator of economic performance. Recruiting people takes time so today’s numbers are a reflection of past rather than current performance. For jobs growth to continue, productivity needs to improve and the only sustainable way to ensure it does is for Government to give businesses the certainty they need to invest. “For that to happen, businesses are clear that policymakers must avoid a disorderly No Deal Brexit and restore some much needed confidence for companies to start to invest again in skills, wages and productivity.” Bouyant jobs market sees increased churn in manufacturing labour

RkJQdWJsaXNoZXIy MjQ0NzM=