July/August 2019

So what are manufacturers telling us now we’re more than half way through the year? Well on the positive side output has held up to date and, so has employment. Wages in the overall economy have risen by 3.3% – 1.5% above inflation – albeit wages in manufacturing have risen by a lower 2.2%. But, and it is a big but there are now significant clouds on the horizon… Export orders from Asia and Europe remain near their lowest since 2016 as foreign customers increasingly move away from buying UK goods due to Brexit uncertainty. Stockpiling ahead of the original Brexit deadline of March 29th was the highest level ever recorded in the G7. The result, as we now know from our latest figures is that imports rocketed up by 11% in Q1 this year. The effect of stockpiling and even more of the difficult investment and global demand situation had a clear and different effect on subsector performance. If stockpiling boosted production, it wasn’t the case for all manufacturers. The plunge in investment in the UK and the slowdown of the global economy are affecting negatively machinery producers which are suffering a contraction together with the motor vehicle sector and its vast supply chain hit by Brexit uncertainty, the global car manufacturing slowdown, and the drop in car registration. The consequences of this scenario are also well highlighted in the regional performances with regions showing different stories. As an example, the Midlands enjoyed the food & drink boost but it also faced some difficulties related to the motor vehicles sector. The North West saw growth grew in output and employment thanks to the pushed derived from chemicals and pharmaceuticals production. The resilience of the sector shows that manufacturing can continue to be the engine of our economy long into the future. It already contributes more in GDP terms than even financial services or construction. Manufacturing businesses contribute nearly 3 million jobs, most of which pay above the national average, the sector contributes half of UK exports, comprises the bulk of this country’s R&D spend, and the UK is today the 9th largest manufacturing economy in the world in GDP terms. Manufacturing is vital to the British economy and we must work together to make sure we are able to build on this ongoing success. By MAKE UK chief executive, Stephen Phipson MAKE uk - the manufacturers’ organisation monthly news comment News July/August 2019 www.pwemag.co.uk Plant & Works Engineering | 0 9 Rittal celebrates its 40th anniversary in Rotherham 2019 marks the 40th anniversary of Rittal Ltd in the UK. The company started its operations in Rotherham in July 1979, providing provide distribution, sales and marketing support for its customers. It also has sites at Canary Wharf in London and it has manufacturing operations in Plymouth – which recently won “Manufacture of the Year Award” – all of which contribute to its standing. “Rittal UK is part of a major international success story”, says Shane Hope, managing director of Rittal Ltd. “Our core product range of enclosures are used all over the world and are found in more than 90 percent of all industrial sectors. One of ours most popular products, the AE Enclosure, has sold more than 35 million units alone.” He continued: “Innovation and reinvention is part of our determination to embrace Industry 4.0 and as a customer-first approach to product development. “For example, we developed the VX25 – providing a system that delivers beyond the market’s expectations. We’ve also developed the highly-anticipated and soon to be launched AX & KX range of enclosures. These developments incorporate key elements that support a digital value chain for panel building and switchgear construction.“ Seamless value chain enhancements Both Rittal and its sister software company Eplan, have sought to create a seamless value chain for customers through enhanced process steps in engineering, design, work preparation and production. Shane explains: “This approach and the delivery of an end-to-end solution – from design software and digital twins to automated systems for modifying enclosures – means we can give its customers boosted productivity and efficiency across all aspects of the enclosure creation process and beyond. “We’re helping customers to capitalise on the myriad of opportunities that are being created across the global technology sector in automation, the Internet of Things and cloud-based computing. “We’d like to thank our customers and all those who have helped us on our journey – here’s to the next forty years – and beyond!” For more information visit www.rittal.co.uk