A changing nation

Whether we like it or not, UK manufacturing is suffering and most of us know the reasons why. Lack of investment from governments, a strong pound, outsourcing and global competition from the Far East and Eastern Europe, innovative products are not making it to market due to a lack of funding from UK financial institutions and venture capitalists, there aren’t enough engineering graduates or skilled technicians coming through – the list goes on. But before we all start reaching for a handkerchief, it’s not all doom and gloom out there – there are some bright spots in UK manufacturing that should be applauded and stories that should be shouted from the rooftops. First, the real success stories seem to come from our more high-tech, specialist manufacturing sectors. The UK motorsport industry is a fine example, as are the biotech and medical, smart materials and defence technology. There is a common theme which runs through each of these sectors though: each is continually striving to design the next genuinely innovative product or process and wants to be first to market. Each company believes and spends generously on continuous R&D, and they’ve all differentiated themselves by specialising in certain niche, growth markets. And in the following special report, Eureka has reviewed the best technical breakthroughs from UK companies during the last three years, from areas such as smart materials, software, fluid power, engines, motors and drives, controls and automation, energy saving, defence technology and organic displays. Another flicker of light has appeared from Eureka’s own research. Unlike the employment figures for UK manufacturing, the UK engineering sector has remained stable over the last five years. The total number of UK design engineers is now approximately 114,000, down from last year’s figure of 116,000. The only difference from five years ago is the proportion of engineers which have left manufacturing companies to work for design houses or engineering design consultancies. So British design engineers must be doing something right, even if we are losing the manufacturing element overseas. Speaking at a manufacturing event in Stafford last month, which promoted closer links between schools, academics and engineering businesses, Dr Tim Leverton, engineering group director of JCB, commented: “Customers are increasingly buying into brands these days. So UK manufacturing firms are faced with relentless product development, shorter lead times and a constant need to innovate to stay ahead of competitors.” He added that in the case of global companies, this meant centralising R&D activities to enable competencies to be developed fast enough, but then adapting these for local markets. This product-driven strategy has been crucial to JCB’s own survival, which now develops 160 different products each year compared to just 25 products 10 years ago. Leverton concluded his speech by saying that, “For UK manufacturing to have a positive future, the availability of able, inventive engineers and graduates is crucial.” Quite. If anyone needs further proof that UK manufacturing and engineering still have a future, check out our special ‘British is best’ review of the last three years. The level of innovation and the number of successful technical breakthroughs coming from UK companies is nothing short of incredible. What we need to work on now is keeping the profits from this hard work coming to British shores rather than abroad.