Why we need to automate – now

This topic will be under discussion at Answers for Industry (www.siemens.co.uk/afi), a major conference and exhibition hosted by Siemens on 4 and 5 July at Manchester Central Convention Complex. It has been widely publicised that the Coalition intends to aid the rebalancing of the economy given the now common view of our over reliance on the financial and service sectors before the downturn. Government policy is therefore more supportive and aligned with public opinion that Great Britain should be known once again for 'making things'. The manufacturing sector has actually performed well given the challenging economic conditions over the past couple of years. But if it is to reverse the general fortunes of the past two decades, the time has come for the sector to commit to a long-term plant and equipment investment strategy. Statistics suggest the UK lies well behind continental Europe in the application of automation and robotic systems in manufacturing. A study conducted by The Engineering and Machinery Alliance (EAMA), found that Germany has an installed base of 144,800 industrial robots – the UK stands at just 15,000. This proportionate difference also reflects the market size for Programmable Logic Controllers (PLCs), a technology at the core of most industrial machines and processes. There are clearly sector strengths in Germany, such as automotive, that explain some of the difference. However, it is evident that a significant proportion of automation technology investment in Germany stems from widespread, proven experience that it delivers real competitive advantage in the form of production quality, productivity gains and overall output. Along with the clear installed base disparity, investment responses to the downturn in the two countries have been notably different. In 2010, €167.4bn was invested in plant and equipment in Germany – a startling figure that was a 9% increase on the previous year despite it being a period of reduced confidence. Meanwhile UK investment levels, which are dwarfed by Germany's, declined by an adjusted 5.1% over the same period, which in turn was 21% down on 2008, suggesting quite distinct attitudes to investment and productivity. The benefits of automation technology are numerous, but primarily it drives improvement in productivity. The British Automation Robotics Association (BARA) summarised their view in the document 'Automated Manufacturing': "When applied appropriately, automation of the manufacturing process not only drives costs down, it improves quality, reduces waste and optimises energy use" – a scenario manufacturers of all sizes can relate to positively. For the UK to attain aspired levels of manufacturing output in high-value niche manufacturing and to protect present domestic capability, we need to build on our strengths invest in areas such as low-carbon, material technology, aerospace & defence and automotive manufacturing, while also getting better at planning and executing domestic strategies for British-designed goods. Automation technology and its link to the digital design environment features in the approach of the new MTC (Manufacturing Technology Centre) and this is arguably key to developing our capability in high value manufacturing - linking world-class digital design capability with digital factories. This approach must be central to our progress in commercialising new ideas, and enabling domestic and foreign-owned companies to see the UK as the right manufacturing location for higher value, customised goods. Our manufacturing sector needs to address the challenge of applying technology to mass customisation, creating flexible automated manufacturing processes. Automation technology can make a real difference to the British manufacturing landscape – an area increasingly vital for our future economic health. To date, it is clear this is an aspect of industry that has been under-exploited. It is imperative we now invest in the next generation of technology to shape and develop our manufacturing base, to protect current strengths and realise targeted future growth.