< Previous20 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FACTORY AUTOMATION Change or be replaced Automation and AI are changing the ways factories operate, and those in the East Midlands who fail to adopt them may find themselves replaced by foreign competitors who will. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 21 FACTORY AUTOMATION 安琦 王 L abour shortages, rising labour costs and the advancement of AI are pushing manufacturing in new directions, primarily toward greater levels of automation. The UK seems to be picking up on this much slower than other countries, however. ASEAN countries have been fast adopters of automation but the UK has fallen behind, citing everything from expensive parts to a poor economy to Brexit, and even COVID. While it’s true all of these have a part to play in making it hard to afford new machinery, the UK’s reluctance to invest in its manufacturing sector goes back further than any of these events. Even back when the region’s manufacturing was in a strong place, the focus was more on maximising profit than it was on re- investing into facilities, and if a company does not use its funds to improve itself when times are good, then it’ll find it harder to improve itself when times are bad. Now, with the UK losing a lot of cheap foreign labour courtesy of Brexit, and with the minimum wage continuing to rise to what many call unsustainable levels, there isn’t much of an option left. Factories need to modernise or they will fall behind domestic as well as foreign competition. Robotics cover by far the most cutting edge and exciting areas of factory automation and have the added bonus of being widely versatile in the tasks they can accomplish. Robots can be used to move essentials around the factory, transport raw materials to the production line, or bring finished products to the packaging area. But they can also be deft enough to manage the actual assembly and packaging of products, some having the fine motor 22 Á22 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FACTORY AUTOMATION skills to perform tasks such as labelling, packaging and handling end products. The beauty of automation extends beyond the simple actions robotic features can manage, bringing in sensors and software that fortify quality control measures. Embedded within the machinery itself, sensors can be vigilant for variables like temperature, swiftly adjusting parameters to maintain optimal conditions. Meanwhile, vision systems inspect products and instantly identify imperfections that might elude human detection. In-line monitoring and control are often highly automated, as sensors, actuators and control systems are integrated into the production line equipment. These programmable regulators take over making precise measurements in areas such as temperature. Not only are they able to spot inconsistencies but adjust machinery settings such as cooking or cooling temperatures based on real-time sensor data. This is known as ‘feedback control’, as these adjustments are made using feedback loops which detect deviations from predefined parameters, and autoregulate in response. Data is collected and analysed in real time or near real time, often using computerised systems, which makes this method another easy and ideal partner to automation. When automated systems detect issues or deviations based on a continuous stream of data, they can trigger alerts or notifications to production operators or control systems. Operators can then take appropriate action based on this information at a later convenient time. And human operators will remain necessary even as AI advances. The truth remains that most FMCG factories will need some level of human oversight. Partially manual processes are still common in the running of many factories for this reason. This balance allows the machine qualities of speed and data-informed consistency to be matched by human insight and adaptability, whether to adjust processes, or for the intuition certain quality checks require. Automation’s impact transcends the factory floor and products themselves, exerting a profound influence on product quality and traceability. Sensors can track materials as they move through the production line, allowing for a detailed record of each step of the process and reducing the risk of recalls. Even when an error or flaw slips past detection, the trace established by data during production can remain linked so that faulty batches may be easily identified and pulled back from sale if necessary. The ultimate reality is that the world is becoming more digital and faster paced. Supermarkets and stores demand immediate allocation of consumer goods, and many countries are managing it just fine thanks to automated factories. If the region doesn’t meet the challenge, then it’s quite possible foreign investors will come and bring their own methods – forcing UK manufacturers out the market entirely. e.com/Nataliya Horawww.eastmidlandsbusinesslink.co.uk East Midlands Business Link 23 REFRIGERATION Understanding the cold chain and its importance in the food industry is an essential part of delivering quality goods, whatever the size of your business. But on an industrial level, the complexities of integrating the practice into your strategies only multiply. A t a basic level, maintaining a temperature-controlled supply chain just means processing packaging, storing and delivering products at a constant stable temperature. But the more products you have to juggle, the more demanding it is to identify critical points in the cold chain and execute properly for each one. To protect the integrity of every batch or shipment, each stopping point and potential dropping-out of cold storage must be considered, including during transportation, distribution, or in containment while waiting to be processed or sent to the end consumer. Traditional thermometers, whether analogue or digital, can be used anywhere to monitor temperature at regular intervals, while being reasonable in price and simple to use or maintain. Though it’s obvious how critical a role refrigeration units play in cold storage, there’s no less importance in pointing practice Into 24 Á24 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk REFRIGERATION out that products have differing needs based on type. The method by which food product is stored and refrigerated may be different to pharmaceutical products. Whether it’s the ample space for storing fruit and vegetables, dairy, meat and beverages in bulk provided by a walk-in fridge, or smaller reach-in varieties for use in areas such as medical facilities and pharmacies, the choice you make will depend on your organisation’s size, purpose and future goals. For instance, if your employees need quick and frequent access to packaged goods or ingredients, reach-in refrigerators may be used in this way for keeping everything chilled until ingredients or prepared food are ready to be processed or transported. For larger bulk goods that need to be kept at a specific temperature, a walk-in freeze room would work better at preventing heat creeping in. However, when cold stability is needed as quickly as possible—such as when processing meat, poultry, or seafood—blast chillers or blast freezers lower the temperature of food quickly. The instant and powerful cold exposure provided by either one inhibits bacterial growth, preserving flavour and textural quality, and extending your products’ shelf life. The food industry is obviously the sector with the greatest need for www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 25 REFRIGERATION refrigeration. Chilling foods at 8 degrees Celsius or below—a legal requirement for England, Wales, and Northern Ireland—is best for storing foods for shorter periods of time while they await the production line. To be certain that food is kept cool enough for health and safety, it’s considered good practice to set fridges at 5 degrees Celsius or below, as well as running regular checks that units are cold enough for purpose. But it isn’t enough to set up refrigeration and trust it to work. Things go wrong, and that’s why sufficient monitoring is needed. Control systems are a gift for keeping track of cold environments and making adjustments without the constant need for manual inspection. With these systems, a controller receives temperature data from sensors, then activates cooling or heating mechanisms as needed. Heating, ventilation and air conditioning (or HVAC) may also be used to provide consistent temperature control, proper air circulation and humidity management, and maintain optimal storage conditions. When it’s time for finished products to be delivered to shelves, perhaps across the country, cold storage facilities can be installed in loading bays to keep them stable for transfer onto refrigerated trucks. Specialised monitoring systems can be employed here as in any other containment area, to ensure products always remain within the required temperature range. By identifying and including these fundamental aspects of protecting food products from inconsistent temperatures, you can ensure the delivery of safe and high- quality products to consumers. Though preserving food and beverages from ingredient storage to final delivery is stacked with challenges, careful examination of an entire supply chain for cold storage needs should always be your first port of call. 26 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX Spring Statement 2025 - a defensive play or offensive push for growth? James Pinchbeck, partner at Streets Chartered Accountants, reflects on the Spring Statement. I n delivering her first Spring Statement, Chancellor Rachel Reeves made it clear that this government intends to follow the principle of a single annual Budget, with major tax changes reserved for the Autumn. The Spring Statement, instead, is positioned as a fiscal checkpoint, a chance to update the nation on the economic outlook and to adjust financial levers as needed. For many businesses and individuals, the most immediate takeaway will be relief in that there were no further tax increases. That said, there was also no reversal of previous tax hikes, nor any uplifting announcements such as increases to the personal allowance or adjustments to frozen tax thresholds. Those hoping for fiscal giveaways will have found little to cheer about. As anticipated, the Chancellor’s focus was on tightening public spending. With the UK economic growth forecast for 2025 revised downward from 2% to just 1%, the pressure is on to rebalance the books. Lower than expected tax revenues and rising borrowing costs have left the Treasury with less fiscal headroom, prompting action. The Chancellor cited global geopolitical tensions and instability as major headwinds, but much of the UK’s stagnation has been homegrown with a combination of suppressed consumer confidence and cautious business investment. Households continue to grapple with the cost-of-living crisis, while employers face increased staffing costs, notably from the rise in National Insurance contributions from 6th April. Public sector reform, transformation or austerity 2.0? A key announcement was the creation of a £3.25bn Public Sector Transformation Fund, aimed at shrinking the size of the state and boosting productivity through AI and digital innovation. This includes structural changes such as the dissolution of NHS England, in an effort to cut costs and improve decision-making. There will also be further tightening of welfare budgets, with cuts to Universal Credit and other support mechanisms flagged as part of the savings drive. A defence led growth strategy? Perhaps the most headline grabbing shift is the government’s framing of defence spending as an economic growth strategy. With £400m earmarked for defence innovation, particularly in AI and drone technology and a commitment to increasing defence investment as a percentage of GDP, the Chancellor declared her ambition to make the UK a “defence industrial superpower.” To complement this, capital spending commitments will continue with a £2bn increase, alongside a renewed push to meet housing targets and accelerate homebuilding. Whether this marks a bold new direction for economic strategy or a reactive shift to global instability remains to be seen. What’s clear is that growth is now expected to come from defence procurement and infrastructure investment, rather than tax cuts or consumer led stimulus. As ever, the effectiveness of this strategy will depend not just on the vision, but the execution. Businesses, investors and households alike will be watching closely. For the devil in the detail, watch Streets Chartered Accountants’ post-Spring Statement webinar on catch up at https://www.streetsweb.co.uk/resources/ videoGuides/the-spring-statement-2025/ 28 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FAMILY BUSINESS I n a world increasingly dominated by faceless corporations and algorithmic efficiency, a comforting warmth persists. It emanates from the corner bakery, the independent bookshop, the generations-old engineering firm – the family business. These enterprises, woven from shared history and familial bonds, offer something profoundly different, something that resonates on a deeper, more human level. They are the keepers of tradition, the guardians of personal service, and the silent architects of community. Unlike their corporate counterparts, family businesses are rarely driven solely by quarterly profit margins. The pursuit of legacy, the desire to uphold a reputation built over decades, and the commitment to future generations often supersede immediate financial gains. This long-term perspective allows for a patient, considered approach to business, fostering stability and a sense of enduring quality. Consider, for example, Hartington Cheese Shop in the Derbyshire Dales, within the East Midlands. They specialise in a particular type of Hartington Stilton, using traditional methods passed down through their lineage. They know the exact pasture their cows graze on, the precise temperature and humidity required for aging, and the subtle variations in flavour that come with each season. They are not simply producing cheese, but they are preserving a heritage, a culinary legacy that connects them to their ancestors and their community. This intimate connection to their craft is palpable, infusing their products with a unique authenticity that mass-produced goods simply cannot replicate. This authenticity extends to the customer experience. Personal service, often lost in the impersonal churn of large corporations, is the lifeblood of family businesses. They remember your name, your preferences, your story. They are invested in your satisfaction, not just as a consumer, but as a member of their extended community. This creates a sense of belonging, a feeling of being The human touch of family business Amidst corporate dominance, family businesses thrive on human connection, ethical values, and a dedication to their communities. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 29 valued, that fosters loyalty and trust. Take, for instance, Frank Key, a family- owned builders’ merchant with branches across Nottinghamshire and Derbyshire. They’ve been serving local tradespeople and DIY enthusiasts for over a century. Their staff, often long-term employees, possess extensive knowledge of their products and can offer expert advice on everything from foundation laying to roofing. They know their customers, their projects, and their specific needs. They offer advice, not just materials, and go the extra mile to source specialised items. This personalised approach cultivates a relationship built on mutual respect and genuine care, a hallmark of family-run businesses. The Midlands, in particular, has a rich 30 ÁNext >