Manufacturing 2015: Investing in productivity and R&D
EMBRACING new technology and investing in research and development are key issues for the manufacturing sector in the region.
Reshoring production facilities back in the UK means that there is a lot of investment going into R&D, especially on the “burgeoning” advanced manufacturing side.
Karen French, head of manufacturing at Squire Patton Boggs, believes that Yorkshire manufacturers are “incredibly focused” when it comes to increasing their productivity in a way to meet their individual needs.
She said that embracing technological innovation remains of “fundamental importance” when it comes to ensuring growth within a business.
She has highlighted the trend for companies to look to reshoring to do this and increase their output and profits. She said: “My impression is that many companies are becoming increasingly aware that they could save money if they bring back manufacturing to this country and this region.”
Andy Tuscher of the EEF continued: “There’s an increasing number of global organisations who are actively repatriating to the UK – and they wouldn’t be doing that if this country wasn’t productive.
“They need to get their production right and the quality right. Here in the UK, we’re very good at ensuring high quality.”
Ms French said: “I don’t think that [the funding] process is made as straightforward for manufacturers as it could be.
“But being able to access appropriate funding in order to innovate and sustain growth is imperative not only for individual companies but for the sector as a whole.”
Greater access to simpler funding may be the key to reshoring, as well as increased activity on the R&D and productivity fronts.
Michael Bates, former managing director of bed makers Harrison Spinks, said that investment in new ideas was one of the best ways to ensure that a company keeps growing. “When it comes to innovation – you’ve got no choice. We’re fortunate in that the owner of Harrison Spinks is an amazing engineer who likes to challenge the status quo by placing innovation at the heart of what he does.” he said.
Ms French said: “Embracing technological innovation is also an intrinsic part of ensuring best practice within an organisation… some might describe it as ‘closing the circle’.”
One Yorkshire business who has managed to hit these targets is Sheffield Forgemasters International, who, along with others have identified that the UK needs more high-skilled, well paid jobs to increase productivity and to rely on innovation and R&D to maintain its position among manufacturers globally.
Paul Madin of Sheffield Forgemasters said: For the sector in general, the biggest issue is lack of demand due to the global financial situation.
“Manufacturing, particularly in the UK, appears to have suffered from a reduction in productivity but I believe that this is a function of reduced order-load rather than a decay in our abilities.
“Given the lack of suitably trained people in the job market and the time needed to train up new starters, manufacturers must adopt a longer term view of the economic cycle and the labour market. 
“I believe that a resurgence in consumer demand will inevitably lead to rises in productivity.”
However SMEs do not have the same resources as a large organisation like SFIL.
Schemes like the AMRC training centre in Sheffield, allowing smaller companies to take on a single apprentice, and the University Technical Colleges, purpose-built training facilities that can be geared towards specialised and advanced manufacturing techniques are pushing the manufacturing sector in the region forward.
Kodak are among the Yorkshire-based manufacturers that are backing the new University Technical College Leeds, which will deliver a manufacturing and engineering focused curriculum.
Phil Ball, managing director of Kodak said: “In my experience, manufacturers in the region have huge problems getting the right skills in place and the age profile of many of their employees – with many in their 50s – is also an issue. The main motivation behind the development of this college was to overcome these issues.
“As a sector, I do think that we’ve brought some of these issues on ourselves by not investing enough in training down the years.”
Complementary projects have been running in the North West and West Midlands. Click here to read their reports:
