We recently co-hosted a Directors Forum dinner in conjunction with The Manufacturer, discussing what changing legislation and Brexit could mean for British manufacturers.
We brought together some of the leading lights from industry in the North of England,
with discussions chaired by Professor Sam Turner, chief technology officer at the
Advanced Manufacturing Research Centre (AMRC), and Dorrien Peters, our
National Head of Manufacturing.
The evening began with an introduction from Professor
Turner to Industry 4.0 and the opportunities that it presents
to manufacturers. Industry discussion is dominated by the
new technologies coming through, the uses for them and
how they can change the entire business landscape
for manufacturers. Also, we have recently seen that
disruptive technologies and business models can throw
up huge questions about regulations and legality.
Inevitably, the discussion turned to
this year’s hot topic – Brexit. While there was
a consensus that much of industry has seen
their exports become more competitive,
industry leaders in the room also agreed that
there will always be fluctuations in export
competitiveness and that the real issue
facing manufacturers when it comes to
Brexit is its impact on regulation.
One of the biggest questions in
the room was how manufacturers can
ensure products remain compliant with
EU standards post-Brexit. Delegates said
that this is a common topic at board
meetings, but also one which is largely left
alone on account of there being so much
uncertainty.
One delegate described the
lengths their firm went to in order to comply
with European regulations only 18 months
ago: they bought new equipment, retrained
staff and even had to rearrange the shop floor.
Their worry now is that the substantial outlay
on retooling and the time spent on retraining
could all be in vain.
There was also a common concern that
statements on changes to legislation could be
hidden in overarching statements about the post-
Brexit landscape which risked making it difficult for
manufacturers to extract the information relevant to them.
Clarity and communication from Government as to what
regulatory changes may be in the forthcoming was agreed
as being paramount to maintaining the confidence of British
manufacturers.
There was a split around the table regarding export regulations;
some delegates were unconcerned and foresaw no significant changes to
regulation, while others believed the Government would marry up British standards
to those of continental European, therefore having little effect on business.
Some delegates were less optimistic and predicted a huge issue with regulation in the
pharmaceuticals and food manufacturing sectors in particular that could be
potentially ruinous to British manufacturers. The government has regularly
made the point that the sector needs to export more, but with no
certainty as to policy, it remains difficult for manufacturers to plan
appropriately.
The discussion also touched on regulation of new
technology and business models, in particular the “sharing
economy”. Companies such as Uber, Airbnb and Deliveroo
have grown exponentially under this new business
model, becoming hugely successful in their respective
fields without the cost bases associated with their
competitors of owning taxis, hotels or having
employees, respectively.
Regulation has come to the fore recently,
however, and both Uber and Deliveroo have
found themselves under pressure about their
employment practices.
Opportunities and threats was a
theme among delegates: 3D printing was
another new technology which the sector
had begun to embrace, but which also
presented its own challenges, most notably
the risk of blueprints for weapons being
leaked online and falling into the wrong
hands.
This is a threat to innovative
manufacturers in particular; blueprints for
products could be leaked, meaning similar blueprints
become available, presenting businesses
with the difficult task of enforcing IP rights
internationally and against potentially
anonymous sources. Regulation needs to be
put in place to protect manufacturers from
these kinds of situations happening to them
and to promote the utilisation of potentially
defining new technologies such as 3D printing.
Delegates discussed how it is not only technology changing in the sector, with business
models undergoing a complete overhaul. Servitisation
has come to the fore; this business model has the
potential to secure ongoing business for manufacturers for
years to come with the right agreement. Manufacturers need
to understand the opportunity; the issue that these long-term
service relationships are new to many in the sector and ensuring
proper precautions are taken is paramount, effective contracting being
just one aspect.
There was unanimous praise among delegates for what organisations such
as the AMRC are doing, and their critical function in helping the growth of British
manufacturing, by allowing the nation’s manufacturers to do what they do best, which
is innovating, and created by freeing them of the uncertainty of legislation.
Article reproduced with kind permission from The Manufacturer.
Published: 16 May 2017
Focus on Manufacturing - Edition 5
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