Britain’s manufacturers are calling for a cross-industry and Government taskforce to assess the UK’s current and future supply chain resilience and capabilities, as well as establishing an action plan to protect the economy from any future significant disruptive event.
The call was made on the back of a major report by Make UK and Infor, ‘Operating without Borders – Building Global Resilient Supply Chains’, which shows the stark impact on UK manufacturers from the economic shocks of the last two years and the knock-on effects to supply chains from increased energy, transport and raw material costs, as well as transport availability.
The findings also indicate that the longstanding strategies manufacturers have adopted to off-shore in response to globalisation, operating a ‘just in time’ process with virtually guaranteed transport links and low-cost production, have been turned upside down with disruption and increased volatility fast becoming normal.
As a result, this has led to companies significantly increasing the number of suppliers so they have more options in the event of disruption, with these suppliers increasingly sourced back in the UK or Western Europe.
Looking forward the report shows these trends were already accelerating in the next two years, to which the invasion of Ukraine and continuing disruption in China are likely to have given further impetus.
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The UK manufacturing industry has started the second quarter of the year on a positive note, posting a mild growth acceleration despite a number of challenges, figures released reveal.
Key takeaways:
- Seasonally adjusted S&P Global / CIPS UK Manufacturing PMI rose to 55.8 in April – up from 55.2 in March and the earlier flash estimate of 55.3
- 55% of manufacturers expect output to increase over the coming year
- 85% of firms saw purchase prices rise, while there were no reports of a decrease (a survey first)
- 61% of manufacturers increased their selling prices in response to rising costs
- Employment in the manufacturing sector rose for the 15th successive month
- New order growth slipped to its weakest in the current 15-month upturn
- Purchasing activity increased for the 15th month in a row
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Arrol Gibb Innovation Campus aims to transform large-scale manufacturing.
Strathclyde is a partner in a global centre of excellence aiming to transform large-scale manufacturing through innovation and skills development which has been launched in the south-east of Scotland.
Based at Babcock International’s Rosyth facility, the Arrol Gibb Innovation Campus (AGIC) will serve a range of small to medium-sized enterprises in the marine, nuclear and energy-transition sectors, offering access to the latest industrial techniques and technology, industrial and office space, innovation advice and skills development.
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94% of UK manufacturers believe the industry has fallen behind the US due to a lack of digital investment, new research shows.
According to the the Manufacturing Digital Productivity Report from iBASEt, supported by the MTC (The Manufacturing Technology Centre), more than half (56%) of UK manufacturers are losing sales as a result, and more than nine in 10 (93%) say underinvestment will lead to many UK manufacturers going out of business in the next decade.