AROUND THE REGIONS APRIL 2019
AROUND THE REGIONS:
THE NORTH WEST
Uncertainty is weighing as heavily on the North West’s manufacturers as anywhere
else, say Make UK, the Manufacturers’ Organisation, in their monthly column
BY JOEL DURKIN, REGIONAL MEMBERSHIP MANAGER FOR THE NORTH WEST, MAKE UK
Despite almost three years of talk,
negotiations and political turmoil,
UK manufacturers still see no light
at the end of the never-ending tunnel
known as Brexit.
As businesses across the UK plan for
worst case scenarios, stockpiling has continued
to increase in recent months. Manufacturers are
being forced to act on the little knowledge they
have of the current political situation rather
than moving forward with a clear picture of the
relationship the UK will have with Europe.
In the North West, the manufacturing sector
employs around 350,000 people, and accounts
for around 16.3% of the region’s output. The
uncertainty is weighing on the economy as much
as in any region.
Make UK and BDO’s Quarter 1 2019 Outlook
Survey highlighted that stockpiling, rather than
customer demand, is driving the manufacturing
market, and it is no different in the North West,
with many firms building up their materials to
deal with potential supply issues when the UK
does leave the EU.
But inevitably, there are limits to what
manufacturers can safely hold. Whether these
limits are driven by money, space or other factors,
manufacturers in the North West are telling us
they can only build up their stocks so much.
Another way manufacturers in the region have
attempted to mitigate potential Brexit issues
over recent months is speaking to EU customers
and suppliers to avoid the weeks following the
anticipated exit from the EU on 29 March, and
potential chaos at UK borders. With March
coming and going and manufacturers in limbo
about the way forward, will this process have to
be repeated in the coming weeks?
But despite the obstacles, many North West
manufacturers feel they are simply unable to
stand still and wait for the uncertainties to run
their course. Equipment needs to be replaced
and capital investments need to be made,
even though manufacturers have little idea
whether the sales, which will help to pay for the
equipment, will continue in the coming years.
The good news is that in
spite of the turmoil, many
manufacturers are investing
for the long-term as well,
realising the opportunities in
a global market for a modern,
productive manufacturing
firm. Companies across the
North West are embracing
Industry 4.0 and understanding
the benefits of how digital
technologies can improve
quality, raise productivity or
increase sales.
We have seen one large
manufacturer in Burnley
embracing the benefits of
embracing 3D printing to
reduce prototyping costs, an
investment which has paid off.
While others in the Greater
Manchester area are improving
their operations through use of
robotics and automation, the
success stories are there to see.
The £20 million,
government-backed Made
The Greater
Manchester
region is a hotbed
of automation
Smarter programme currently
being piloted in the North
West is another opportunity
for manufacturers to benefit
from adopting digital
technologies.
The programme is set to
engage with 3,000 North West
SME manufacturers to boost
productivity. This includes
match funded support and
advice about how digital
technologies can revolutionise
their processes to help both
make and save money.
The manufacturing
industry is changing at pace,
with world class innovation
demonstrated by many of our
members companies. Through
the ages manufacturing has
adapted and thrived through
many changes, so despite the
current political uncertainty,
UK manufacturing has a bright
future, which we at Make UK
are proud to support.
42 www.manufacturingmanagement.co.uk
SakhanPhotography stock.adobe.com
/www.manufacturingmanagement.co.uk
/stock.adobe.com