ROUND-UP JANUARY 2020
InDepth 22nd
Fast facts: Manufacturing Barometer
The UK ranks
low for adoption
of robots
70%
of SMEs have
no plans to
introduce robots
44%
of businesses
su ered a drop in
profi t in Q4 2019
Industry reacts
as Conservatives
win historic
landslide in election
Following the Conservatives’ victory
in December’s general election,
leading fi gures from the industry
have commented on the impact it will
have on UK manufacturing.
First to comment was Stephen
Phipson, chief executive of Make UK.
He welcomed the clarity that
a majority government will
bring, especially around
Brexit. “Uncertainty
and delay have caused
great damage and
manufacturers will hope
this result means that the skies can now
begin to clear,” he said. “The fi rst job is
the urgent need to begin negotiations
on our future trading relationship with
Europe, cementing frictionless trade,
access to key skills, regulatory alignment
and space for business to prepare for
new arrangements. Manufacturing
exports are one of the powerhouses of
our economy – and we must allow them
to fl ourish.”
Alison Horner, indirect tax partner
at MHA MacIntyre Hudson, warned that
careful planning is still necessary.
“The Tory majority means
that the new government
will move swiftly to ratify
the Brexit Withdrawal
agreement, in order to
prevent the UK crashing
out of Europe with a no-deal on
31 January,” she said. “However, what
happens at the end of 2020 is unclear.
Most commentators and industry
specialists believe that reaching a Free
Trade agreement ... in less than a year
is wishful thinking at best. If such an
arrangement with the EU is not reached,
an extension to a transitional period
will need to be agreed to avoid the UK
facing the same dilemma of crashing out
in 2021. Although many companies have
already put plans in place to deal with
the UK exit from Europe, the reality for
day-to-day operations is not one that
any business relishes.”
Bekki Phillips, managing director
of In-Comm Training, focused on the
need to develop skills in
order to further grow
the sector: “The biggest
thing for business is that
hopefully we now have an
end to uncertainty and the
government can start to look
to the future and implementing some
of its policies to support the economy.
“It is vitally important we continue
to plan and build environments that
ensure individuals have the right skills
to move our country forward, as we
start to forge new alliances in the
world of trade deals and make the
most of the UK’s position in digital
manufacturing and green technologies.
“Business has been stagnating for
too long whilst we’ve waited to get an
outcome with Brexit. Now is the time to
be positive and forge ahead with plans
for the future.”
SMEs’ robot reticence
remains, says report
Just 16% of manufacturing SMEs have
adopted robotics, with only a further 13%
saying they plan to use them, according
to the latest national Manufacturing
Barometer. But over 70% have no plans,
or are unsure about, introducing robots.
Published by SWMAS and partner
Economic Growth Solutions, the study
also highlights how the sector has
suered its toughest quarter in a decade.
More SME manufacturers report a
reduction in sales, profits and sta
numbers than in any period across the
last ten years. Some 44% of businesses
experienced a fall in profits in the last
quarter – 10% more than in the previous
three months.
“This quarter, we are left in no doubt
that the sector is experiencing one of
the toughest periods recorded during
the ten years of the Manufacturing
Barometer,” commented Dean Barnes,
regional director of Economic Growth
Solutions. “That said, the resilience of
the sector is still evident. Whilst a fifth
of manufacturers note ‘survival’ or
‘getting through Brexit’ as an aspiration,
over a quarter talk about growth and
over a fifth reference investment,
whether in machinery and premises
or people, automation, new products,
and establishing new markets.”
“Although the UK ranks as the eighth
largest industrial nation, we are 22nd in
the global league of robot adoption –
we must ask why that is, and this is what
we set out to explore in our study of the
UK’s SME manufacturing sector,” added
Simon Howes, MD of SWMAS. “Three
important things came out of our
research. The first is the simple truth
that so few SME manufacturers in the
UK are using robots in their businesses.
Secondly, a belief that low volume,
variable or dicult to handle products
make robots unviable. Thirdly, more than
one third of SMEs who do not use robots
are unsure if their competitors do, raising
questions around awareness of what is
actually possible for them.”
HUGO PHILPOTT/UPI/PA Images
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