ANNUAL MANUFACTURING REPORT 2016

AUTOMATION & PRODUCTIVITY
ANNUAL
MANUFACTURING
REPORT2016
AUTOMATION
& PRODUCTIVITY
Sponsored by:
Analysis by Adrian Sell
Chairman
The Automation Advisory Board
Thought Leadership Network
The Automation Advisory Board
Thought Leadership Network (AABTLN)
is pleased to support the latest edition
of the Annual Manufacturing Report.
It continues to provide an insight into
trends, investment and priorities, both
ongoing and projected.
It was gratifying to see the Chancellor
recognise the importance of investment
in automation, in the form of a
continuing Annual Investment Allowance
at a reasonably high level. While
£200,000 is not as high as the previous
level of £500,000, it is still high enough to
cover the needs of most manufacturing
companies in the UK, the SMEs.
Competition with other countries, both
low-cost and advanced, is fierce and
automation is key to achieving parity.
The UK still has a long way to go in
terms of roboticisation; Germany, for
example, has around 10 times as many
industrial robots as the UK does. The
world population of robots has now
exceeded 9 million and is being led by
the auto industry.Sales of industrial robots
reached 229,000 in 2014; 139,300 were
bought by companies in Asia. And, as if
it didn’t have enough already, Germany
was in the top five purchasing countries,
with 20,100 new robots bought that year
alone – a record high.
Of course, automation is not entirely
about robots but their presence in an
industrial economy is an indication
of its level of sophistication and
competitiveness.
The advancing level of roboticisation
and automation in the UK is welcome
but the pace has to pushed even
more. The reasons given for investment
in automation are led by the drive
to improve business efficiency, cycle
time and quality – all of them aspects
of productivity. It is reported that
working conditions were improved
by automation, as well. Contrary to
widespread perceptions, jobs are not
generally destroyed by automation
– they are preserved or increased,
according to our survey, at least.
Satisfaction with automation projects
and with suppliers have reached very
high levels – over 90%. Expectations
appear to be generally managed pretty
well and ROI achieved ahead of or on
schedule. Engagement and service are
the principle characteristics customers
look for in their vendors; no-one likes
nasty surprises.
It may be early in the process but it does
look like UK manufacturers are following
a strong evolutionary route, rather than
a ‘Great Leap Forward’. Objectives are
being clearly defined, measured and
managed, and the mix we have in the
UK of Lean and automation continues to
be a defining characteristic.