July 2019

| 0 4 | July 2019 www.smartmachinesandfactories.com | NEWS | A new survey, by the Manufacturing Technologies Association and Close Brothers Asset Finance, has found that many manufacturing and engineering firms are not planning to take advantage of the increase of the Annual Investment Allowance (AIA). From 1st January 2019 to 31st December 2020 a temporary increase in the AIA has been introduced by the government. This is to enable faster tax relief for plant and machinery investments between £200,000 and £1 million, with the aim to help businesses to invest and grow. However, the latest survey by the MTA and Close Brothers Asset Finance has found that despite the increase in AIA manufacturing and engineering firms are not changing their plans to invest in new equipment. The survey found that only 42% of engineering and manufacturing firms were aware that the Government had made an increase AIA.  The survey also found that only a minority of companies (40% overall, 45% in Engineering/Manufacturing) are planning to increase investment in 2019 as a result of the rise in the AIA.  While that sounds like a reasonable rate, only 15% overall respondents and 16% of engineering and manufacturing companies were planning a significant increase, with 25% and 29% respectively saying it would only be a small increase on their original intentions. James Selka, CEO of the MTA, said: “The increase to the Annual Investment Allowance is a great opportunity for UK manufacturing and engineering firms to invest in new equipment and embrace new technologies that could transform their businesses. More needs to be done to get the message out there to invest and more support is needed to help stimulate these purchases.” He added: “The MTA was pleased to see that the Budget included the expansion of the Annual Investment Allowance from £200,000 to £1,000,000. This was a specific ‘ask’ from the MTA and will make investing in new equipment more cost-effective and give the UK the opportunity to be more competitive on an international stage. Now companies need to use this allowance and invest in their future.” Survey finds manufacturers lack awareness of the increase in the Annual Investment Allowance MTC appointed lead auditor for UK robotics The Coventry-based Manufacturing Technology Centre (MTC) has been appointed a lead auditor by the British Automation and Robot Association (BARA) - the trade body which aims to promote the use of robotics in British Industry. The MTC will have lead responsibility for auditing UK robot integrators seeking certification from BARA, and engineers from across the High Value Manufacturing Catapult centres will be available to support the scheme. The audit will ensure that UK companies are qualified to integrate robotics into a production line. Certification will demonstrate that they have appropriate skills and procedures following a rigorous audit and on-site checks. Jeremy Hadall, chief engineer for intelligent automation at the MTC said the appointment was an important step in growing the capability and capacity of UK robotic integrators: “Over the past decade there has been a three-fold increase in the number of robots sold in the UK, with some analysts predicting that the global market for industrial robots could become a £30 billion industry by 2025. This has prompted the need for an industry benchmark to evaluate integrators’ technical knowledge and safety practices.” He added: “As things currently stand, anyone can claim to provide systems integration services but that doesn’t necessarily mean they are trained or competent to integrate a robot into a production line. The new audit system will offer end-users peace of mind that the company and integrator they have appointed to carry out the work has been independently verified.” The MTC was founded by the University of Birmingham, Loughborough University, the University of Nottingham and TWI Ltd. The MTC’s industrial members include some of the UK’s major global manufacturers. The MTC aims to provide a competitive environment to bridge the gap between university-based research and the development of innovative manufacturing solutions, in line with the Government’s manufacturing strategy. The MTC is part the High Value Manufacturing Catapult, supported by Innovate UK. Robotics being demonstrated at the MTC