Manufacturing Q&A: with Myerson Solicitors and GM Business Growth Hub

The United Kingdom's manufacturing sector has undergone a profound transformation, driven by rapid technological advancements and global economic shifts.

To explore the challenges and opportunities within this evolving landscape, Myerson Solicitors have engaged Geoff Crossley, Senior Manufacturing Advisor of GM Business Growth Hub in a comprehensive Q&A session.

This discussion provides crucial insights into the sector's current state and strategies for future growth.

We examine the impact of technology, sustainability imperatives, supply chain complexities, global competitiveness, talent acquisition, risk mitigation, and the transformative potential of Artificial Intelligence.

Additionally, we highlight the support and resources offered by GM Business Growth Hub to manufacturers in the North West.

Manufacturers can approach sustainability as a resource efficiency question.

Previously, energy efficiency may not have been a priority due to low costs. However, with the rise in energy prices, investing in resource efficiency has become very cost-effective.

There are three recommendations that almost every factory needs to address:

1. Replace your lighting with LED (they are significantly cheaper to run and give a better quality of light) 
2. Listen for compressed air leaks in your production area during breaks. They represent wasted money. For a second level of saving, look into purchasing a variable drive compressor that only produces what you need. 
3. Understand your factory's energy consumption by undertaking an audit for energy usage. GC can loan businesses meters to check specific machine consumptions.   

These actions offer free money for your business and have an immediate positive impact on the environment. They are also the first steps towards building a sustainable business.

Seek assistance in mitigating the manufacturing risks highlighted above and embark on your journey to Net Zero. The GM Business Growth Hub stands ready to help.

British manufacturing has struggled due to the lack of a long-term industrial strategy, leading manufacturers to adopt a risk-averse approach and perceive the UK as too expensive to manufacture.

Some companies excel by specialising in areas where others can't match their level of detail, excellence, and creativity. This requires investment, often by reinvesting profits to safeguard future prospects or by acquiring overseas companies to establish a presence in key markets.

Automating and digitising processes leads to better product quality and flexible production capabilities.

Continuous improvement through reinvestment keeps the company innovative and often acknowledged as a market leader.

British companies often underestimate the value of their goods in international markets. However, British products are still highly regarded overseas. Those who succeed in overseas markets prioritise client relationships and continuously innovate to set the pace within the sector.

To achieve the status mentioned above, continuous reinvestment is necessary, and a national long-term industrial strategy would aid in creating conditions for more companies to follow suit.

Manufacturing companies are expected to face a range of risks and challenges in 2023 and 2024. Among these, the skills shortage is a top concern.

To address this issue, UK-based manufacturers are advised to adhere to a "rule of three", which means that all employees should be capable of performing at least three tasks, and at least three individuals should be able to complete each task.

It is also advisable for companies to plan ahead based on the age demographic of their workforce rather than waiting for retirement to occur before filling a skills gap. 

Inflation and margin pressure pose another significant challenge for manufacturers. Companies may implement Lean Processes to address these concerns by increasing productivity and reducing cycle times.

Additionally, thoughtful material selection and design for cost or design for manufacture can help reduce unit costs and maintain margins.

An increasing number of leading manufacturing companies are adopting a design-to-cost (DTC) methodology to address costs throughout the new product development process. Design for manufacture can also help to mitigate rising costs and material scarcity. 

Supply Chain Disruption remains a persistent real-world issue that manufacturers may confront. It was initially observed during the COVID-19 pandemic and has since persisted due to global conflicts, natural disasters and unforeseen incidents. These restrictions are expected to remain in place through 2024, with alternative routes being significantly more expensive.

To mitigate these risks, manufacturers should consider reshoring or sourcing more regionally to replace lengthy supply chains where it makes economic sense and reduces business risks.

GM Business Growth Hubs'  Manufacturing team is comprised of six seasoned advisors, each with extensive knowledge of GM Manufacturers.

They dedicate their days to working closely with manufacturers to enhance their businesses, leveraging their expertise and experience to drive tangible results.

The most exciting part is that this service is fully funded, meaning the customer incurs no costs. 

If you require Manufacturing Support, please do not hesitate to contact us today through the inquiry form available at https://www.businessgrowthhub.com/manufacturing/manufacturing-service-enquiry.

Manufacturing is ultimately a game of standards. Standard Operating Procedures (SOP) generate repeatability and uniformity, which are the foundation of any improvement work and necessary for maintaining good productivity, quality and happy customers.

When standards slip in manufacturing, repeatability is lost, and things begin to unravel very quickly. It's always the responsibility of manufacturing leaders to set the standard.

An organisation that celebrates firefighting will seek a temporary workaround to lesser problems like a missing spanner. For example, it might be to use an adjustable spanner, so if one size goes walkabout, it won't be missed.

Learning organisations are different. A learning organisation does not firefight or accept workarounds. They take the time to truly understand a problem, learn from it and eliminate it forever.

Manufacturing leaders adopting the learner culture should regularly walk around the factory premises, talk to employees, and avoid making hasty conclusions. They should consult with management for their insights and work together to make incremental improvements without extreme alterations.