Plant & Works Engineering May 2022

News 0 8 | Plant & Works Engineering www.pwemag.co.uk May 2022 Manufacturers are part of complex integrated supply chains, which have developed over many decades. Globalisation brought greater flexibility of supply and provided more opportunities for specialisation, creating integrated supply chains and an interdependent global manufacturing eco-system. During the latter part of the last century this was augmented with the establishment in Europe of a common market and the development of a common external customs policy further reducing, if not eliminating, tariff as well as non-tariff barriers to trade for UK manufacturers in their nearest market. It is therefore unsurprising that manufacturers have tended to seek suppliers either domestically or from this integrated market. With the UK defining a new place in the global trading system with exit from the EU and the negotiation of trade deals with many new markets, this system has undergone a shock from which it is still recovering. While significant challenges of EU exit recede, more certainty is returning to supply chains with more predictable costs and timings, albeit more expensive and with longer lead in times. However, there is an emerging longer-term impact. From discussions with manufacturers, while existing relations with customers and suppliers between the UK and the EU have strived to overcome the challenges of the new trading rules, much of the reduction in trade appears to be accounted for through attrition and challenges in finding new business to replace it. What is true is that the impact and shock in the UK’s trading system has not just been caused by the UK defining a new place in global market, but Covid-19 has also clearly had a profound impact on the sector and its integrated supply chains. Be that from transport and logistics challenges to disruption of traditional supply and demand cycles. Covid-19 was cited as significant impact on the sector and the ability to manage supply chains. This is unsurprising as Make UK’s research in 2020 showed Covid-19 has had multiple impacts on supply chains, from disruptions to global shipping and aviation causing increased cost and delays to logistics, to changes in demand with significant drop off for some sectors and increases for other, to manufacturers reorientating production to support the national effect. On top of both these shocks the invasion of Ukraine is creating further instability and, as a result, in the face of this and volatility becoming the norm it’s fair to ask if globalisation has passed its peak as companies rush to bring suppliers closer to home. Make UK will shortly be publishing some research which backs this up and suggests the models we have come to see over the last few decades are being re-written and new strategies adopted. By MAKE UK chief executive, Stephen Phipson MAKE uk - the manufacturers’ organisation monthly news comment A new production site for the manufacture of factory automation (FA) control system products has been announced by Mitsubishi Electric. The company has acquired 42,000m2 of land in Owariasahi City, Aichi Prefecture, in Japan and is expected to be open from April 2025. Demand from the manufacturing industry for FA products is expected to show a medium to long-term growth, particularly in digital sectors, such as semiconductors, electronic components and data centres, as well as for decarbonisation-related areas such as lithium-ion batteries. To meet this increasing demand, Mitsubishi Electric will invest approximately 13 billion yen (approx. 110 million USD) to establish a new production site in Owariashi City, which neighbours Nagoya, where the company’s main FA production site, Nagoya Works, is located. The new factory will use several advanced technologies, such as 5G communication, allowing simultaneous connection of various machines, human workers and automatic guided vehicles (AGVs) as they perform their manufacturing tasks. In parallel, high- speed, real-time data acquisition throughout the factory will provide data sets on all aspects of the production cycle for AI-based analysis to realise a safe and flexible production environment. Additionally, the factory, which will be a three-floor, earthquake-resistant building with a total floor area of 33,600m2, will incorporate Mitsubishi Electric’s digital manufacturing solution “e-F@ctory”. This advanced digital approach strongly impacts both the supply chain management (SCM) and engineering chain management (ECM) systems. For example, it combines information technology (IT) and operational technology (OT) with acquired know-how to achieve an integrated FA environment that reduces the total cost throughout the production process from design, manufacturing and maintenance. It also helps accelerate the improvement cycle for productivity and quality, bringing benefits which many manufacturers strive for, like shorter delivery times and higher production quality and efficiency, as well as being able to react flexibly to fluctuations in demand. The new factory will also expand the use of automated production processes, including fully utilising AGVs for increased efficiency in logistics, and digital twin technologies for synchronised digital and real-world production. The factory is expected to achieve carbon neutrality by implementing a range of CO2 reduction activities that include an “e- F@ctory” based energy monitoring system, and the use of LED lighting, photovoltaic systems and biotopes. New production site for the manufacture of factory automation control system products