The COVID-19 crisis has hit every part of our society and forced us to change the way we work, probably forever. We have probably seen a 5 to 10 year evolution in the way we work in the matter of a few weeks.
An upturn in UK Manufacturing
In my opinion, UK Manufacturing will see an upturn in the medium term as a result of COVID-19, in particular smaller manufacturers who supply components for bigger firms.
Why? There are three things that will drive the emerging successful manufacturing industry:
- Supply Chain resilience
- Environmental change
- Next generation employees.
Modern manufacturing does not like having its supply chain interrupted.
The most visible example was car production being impacted very early in the outbreak because parts could not be supplied from other countries who had already been shut down by the virus, effectively extending the COVID-19 impact until every country can contribute it’s parts to the production process. This scenario was played out across many different industries.
Consequently, UK business is going to be looking for a more resilient way of producing, removing the reliance on imports from other countries. Hopefully pandemics on this scale are few and far between but it has highlighted the fragility of the supply chain.
The trick will be in our manufacturers being able to supply a range of products and components to different markets, so removing the dependency on a single supplier for the big manufacturers and reducing the reliance of smaller manufacturers on one or two bigger customers. Manufacturing will need to become more agile, investing in systems and technology that enable them to adjust very rapidly to changing markets.
Customers will demand a more environmental approach
We all like the changes that no travel and limited transportation has made on our environment. With the obvious benefits on air quality and the very visible change in water colour around our coasts, environmental impact and sustainability will increase in public importance. One way companies can reduce their environmental impact will be though reducing the distance products and components are shipped, sourcing closer to home, using UK suppliers.
Developing local manufacturing will be the long-term goal as the UK increases capacity, capability and develop new skills in the workforce. Technology will play a big part in developing this capability and contributing to business growth and success. Business will need to invest in technology to be price competitive with offshore manufacturer, with more streamlined logistics and Increased automation of manufacturing.
Leadership will differentiate companies in the New Normal
There is (and has been for quite a long time) a manufacturing skills shortage making it an extremely competitive job market. Companies are looking to attracting Generation Z employees to fill the gap. They have a different expectation of work to us Baby Boomers who currently run the majority of businesses.
Leadership is becoming more important to get results with a bigger emphasis on the culture and less immediate focus on profit. A culture of better communication and cooperation where ideas and progress are shared freely, whether good or bad. One person’s failed development may be the answer to another’s perplexing problem.
Businesses need to have a good working environment to attract and retain high calibre staff (by which I do not mean a nice office with free coffee). Business will have to develop a culture of cooperation which supports an open and collaborative approach with colleagues and partners.
What Business Owners do now will define their business
The current crisis has highlighted the fragility of the UK and worlds manufacturing. Business will be looking to build resilience into manufacturing now, part of which will be though sourcing components locally and from multiple suppliers. This presents a massive opportunity for smaller manufacturing businesses in the UK supported by a move to very agile working though changed systems and adoption of new technology.
What Business Owners do now will define where their business is in 5 years’ time.
Those of you in manufacturing I’d love to hear your thoughts on this article so please comment.
