< PreviousLockdown has brought many interruptions and changes for us all and whilst many of those have had negative implications, I want to this month focus on the positive outcomes of COVID-19 in particular for the events industry… As many of you may have so far seen, events have been taken online into the digital space and a whole new virtual world has been opened up to us like never before. Of course the digital space has been there for many years and we’ve all utilised it in some way shape or form through and for our businesses, however many of us have never until now used some of the platforms that have quite literally become household names – an example being Zoom. Zoom and other social software platforms are being used now more than ever as a form of communication and not just for general chit chats, or meetings, but for actual events. My business came on board with this notion since day one of lockdown and we are getting set to host our third online monthly event through our network, with the aim of maintaining those valuable business relationships, adding value to our clients and staying visible - the three most important key elements for all businesses to consider right now. So far, we have received a positive response from our online events, with our clients exercising gratitude for our fast turnaround in adapting our business model to the current situation we are experiencing and offering an alternative. Now more than ever it is important for us all to stay connected and so these platforms and events Events: Physical Vs Virtual By Fiona Duncan-Steer, founder of RSViP Business Networking Agency. 30 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk NETWORKING 30-31.qxp_Layout 1 18/06/2020 14:09 Page 1Fiona Duncan-Steer – www.fionaduncansteer.co.uk www.rsvipnetwork.co.uk www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 31 NETWORKING combined are doing just that for people. I am seeing many types of online events being hosted by various organisations and companies hosting their own in-house events, from formal webinars featuring power-point presentations, to general discussions with Q&A’s - some featuring visual aids, others focusing on the individual and their story telling. For example we recently celebrated our 12th business anniversary online by incorporating a drinking game to the tune of Stevie Wonders ‘Happy Birthday’, changed the backgrounds on Zoom to fun party scenes and told all guests to bring their own booze and toast our milestone together - it was super fun and added a little something extra to the usual mundane webinar format so many fall into the trap of. Saying that, I can see things only getting better in the area of online events, with more creativity being thrown at them, to individualise and establish ground-breaking innovation in this area. Video has fast become the most popular marketing and communication tool and so it is inevitable that video will be used within online events more and more and boundaries will be pushed - I say bring it on! So where does this leave our old friends the physical events? My view is that they will never tire, much like nothing beats the feel of reading an actual book over a kindle, or the satisfaction of crumpled pages of a magazine over online reading. Physical events will always proceed in popularity over online events, as nothing can match the overall experience and opportunities of being present and in the moment as well as face to face networking with the intent of relationship building. I do however predict that online events will without doubt run alongside physical events and become a part of most marketing strategies. I know that now I myself have entered into the world of hosting online events, this is not just a temporary measure. They are here to stay for the long run, and I look forward to implementing them into my business model further and taking them to new and creative heights. Photograph courtesy of Photography By Gem 30-31.qxp_Layout 1 18/06/2020 14:10 Page 232 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk CONSTRUCTION MACHINERY AND EQUIPMENT The road to recovery The road to recovery 32-35.qxp_Layout 1 05/06/2020 09:44 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 33 CONSTRUCTION MACHINERY AND EQUIPMENT While traditional equipment is continuing to be popular in sales, the equipment used in the construction industry is becoming ever more innovative. Of course, there are highly useful advances with already commonplace machinery, and the constant evolution of engines. While these certainly improve on what is already available substantially, there is also more dramatic, industry changing machinery and equipment coming into play, more so than ever before, particularly with the acceptance of the digitisation of construction. These changes have been attributed to Industry 4.0 and the key technologies driving it: VR and AR, robotics and automation, 3D printing, machine learning, artificial intelligence, the industrial Internet of Things (IoT) and connectivity. Due to its noted rigidity in the past, construction has been considered rather resistant to embracing major technological changes that other industries are now using such as AI. However, if the UK construction industry is to keep up with the global pace of change, it needs to fully embrace innovation, especially while it is facing major problems around employment, efficiency and sustainability, which can all be assisted with incoming and future machinery and equipment. Perhaps the industry is now ready to fully embrace the digitisation in front of it with drones performing surveys, Building Information Modelling (BIM), and autonomous driving vehicles all being used on site. On a smaller scale, apps are now being integrated into machines on site. They can be key for increasing a construction worker’s productivity by illustrating how to complete a task quickly and safely. On a grander scale, AI machinery is now being argued by many as the next step for construction. It is becoming popular for streamlining work to increase efficiency. AI can also be beneficially used to monitor malfunctions in heavy machinery, track equipment, reduce or even eliminate human error and, perhaps most importantly, improve safety on site. Resulting from strides with AI, robots may be the next “big thing”. With this wave of advancement in technology and machinery, it is predicted by Balfour Beatty in its ‘Innovation 2050’ report that building sites may be worker free by 2050, with “drones flying overhead … sending instructions to robotic cranes and diggers and automated builders”. Often ignored on this front, however, is that robots and other autonomous equipment are key for reducing risk, as robots can enter sites to assess their level of danger and stop people doing jobs that are excessively dangerous. Then again, this may result in a culture of remote working by less workers, and we need to consider: is this what we really want? © Shutterstock /Stockr 34 Á East Midlands Business Link explores how investment in the construction industry can help kickstart the nation’s economic recovery at a time where sales of construction machinery and equipment have significantly declined. 32-35.qxp_Layout 1 05/06/2020 09:44 Page 234 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk CONSTRUCTION MACHINERY AND EQUIPMENT Concerns also arise from potential cyber-attacks on AI. In 2017, for example, 200,000 businesses and 150 countries were affected by the now infamous ‘WannaCry’ ransomware. The rise in – and acceptance of – AI, on the other hand, could be a necessary solution to the skills shortage. The Arcadis Talent Scale reports that if the government is to reach its housing targets, the UK will need to recruit 400,000 people a year until 2021. AI machines could be helpful here as less people would need to be employed, filling the gaps many businesses are facing. Despite the technological advancement observed in the construction machinery and equipment market over the last few years, it is far from immune from the effect of the continuing coronavirus crisis – something that can be seen in the decline in sales of machinery and equipment. According to the Construction Equipment Association (CEA), retail sales of construction and earthmoving equipment in the UK market fell by 21.8 per cent in the first quarter of the year compared with the same quarter in 2019. This significant decline lays bear the extend of COVID-19’s impact on the sector. The Association says that although equipment sales in January and February were only down by six per cent compared with the same months last year – which was in line with expectation – March saw sales crash by forty-five per cent compared with last year as a direct result of the crisis. Although these figures paint a grim picture for the market, the construction sector may well have a key role to play in the nation’s economic recovery. Experts at Birmingham City University claim that an £11.27 billion investment in construction and a series of strategic decisions around new home building can kickstart the UK’s economic recovery and deliver a £33 billion return for the government. The ‘Build Back Better: COVID-19 Economy Recovery Plan’, which follows a clear instruction from Prime Minister Boris Johnson that those in construction and manufacturing should now return to work, also calls on the government to stand by its commitment to “do everything it takes” to fight the virus and support the UK economy, by investing in a wide-reaching programme designed to create mass employment and produce a major return. “History tells us that the construction industry is the tried and tested solution to drive economic recovery, not least due to the fact we manufacture the vast majority of building materials in the UK which provides resilience, skilled jobs and fast returns on investment,” said Mike Leonard, construction expert, CEO of Building Alliance and co-author of the plan alongside Birmingham City University’s Dr Steve McCabe. 32-35.qxp_Layout 1 05/06/2020 09:44 Page 3© Shutterstock /banksy_boy www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 35 CONSTRUCTION MACHINERY AND EQUIPMENT “The upstream and downstream jobs in manufacturing, architecture, planning, engineering, distribution and construction, creates an unrivalled multiplier that can achieve inclusive growth, building back better and helping to rebalance our economy. Saving lives must remain our priority but we now have the signal to begin to safely unlock and begin the long path to economic recovery. Construction and the building materials manufacturers are now returning to work with the proper safeguards in place. We must now “Get Britain Building” and “Get Britain Working” delivering the scale of economic multiplier the county needs to bounce back stronger.” Of course, machinery and equipment and embracing innovative technologies is fundamental to the construction industry and, therefore, critical to the nation achieving economic success in the difficult post-COVID period ahead of us. © Shutterstock /Evgeniy Marin 32-35.qxp_Layout 1 05/06/2020 09:44 Page 436 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk LOGISTICS The East Midlands is well known for its strong transport and distribution links. Thanks to our connection with various large ports, as well as strong road links between the South and the North. As such it might come as no surprise to see many companies, large and small, running distribution centres in the region. Managing these distribution centres efficiently can be a common problem faced by many companies, and new advances in the industry are often paid close attention. Many trade shows within the freight, storage and movement industries are now touting the benefits of fully automated warehouses, removing or minimising the need for human employees in favour of robotics and automated systems. These have traditionally been too expensive to install en masse, but the COVID-19 crisis has undoubtedly by now just how crippling it can be to lose staff to furlough, self- isolation or sickness. Is now the time to look toward automating East Midland’s logistics industry? Obviously not on the terms of drivers – self-driving vehicles are making headway, but sure not to be driving lorries on our roads anytime soon. Warehouse operation however, is another matter. The arguments for moving towards fully automated warehouses are many and varied. One of the largest elements is obviously the goal of reducing costs. Currently wages are falling across most regions, but this trend is certainly not going to be a permanent one. Being able to remove employees from the picture could save a company significant money in terms of wages, while also cutting out other related costs involved, such as payroll, HR, and legal matters. It’s worth noting that automated warehouses don’t truly attempt to live in a world where 38 Á The machine question COVID-19 has raised the profile on the risk placed on human employees, leading many to ask how far away we are from a supply chain run through automation. 36-39.qxp_Layout 1 05/06/2020 09:58 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 37 LOGISTICS © Shutterstock /Phonlamai Photo 36-39.qxp_Layout 1 05/06/2020 09:58 Page 238 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk LOGISTICS humans don’t exist. There is likely to be a team monitoring an automated warehouse from another location, ensuring that everything runs efficiently and running the warehouse. But even then, the costs of having a few centralised control teams would be far less than having teams at every single distribution centre. Also, by cutting out manpower there is less risk for accidents or mistakes. While `to err may be human` is all well and good, it’s not something that will placate major customers who haven’t received their shipment on time, or who now have lost or damaged stock. Automated systems reduce the chance of human error. Of course, they do not completely remove the potential for accidents, such as a wooden pallet splintering – a fully automated system, however, cannot be injured by the resultant mess. Space is another benefit to an automated system. Walkways and mezzanine floors can be unnecessary if a distribution centre is set out properly. Aisles could theoretically be removed entirely if a warehouse was to use roof- mounted shuttles or cranes to move goods about. But even if a company preferred to use remote-operated forklifts, there would be less requirements in terms of the width of aisle – a remote © Shutterstock /MOLPIX 36-39.qxp_Layout 1 05/06/2020 09:59 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 39 LOGISTICS forklift unit of course not needing to be as wide as a normal one, due to its lack of a driver cabin. However, the most obvious reason for looking towards automation in the warehouse will always be productivity. Workers will always be ruled by the physical limitations of the human body, while machines do not suffer the same fatigue. An automated system can continue running for 24 hours a day, without the need for changing teams, shifts and breaks. For many retailers who operate online stores and delivery, this enables companies to have more flexible cut-off times for deliveries, improving customer relations and perhaps even making them a more attractive choice for consumers. With all that in mind, it might be worth asking why more distribution centres in the region aren’t already fully automated, if the benefits are so powerful. It is not solely an issue of cost, as many powerful companies run distribution centres in the region, who would have more than enough capital to afford automated warehouses. Of course, costs will always remain an important factor. A fully automated warehouse system requires not only specialist machinery and software, but also a lot of planning and preparation. For existing warehouses, it might mean alteration, or removal of all existing systems, which would lead to a lot of wastage. While for new builds, there is already such high investment being utilised for distribution centres that adding another facet to the mix in what is already a tough economic climate, simply isn’t desirable. Return on investment tends to be a little slower with fully automated systems, despite high labour costs. On top of that there are also concerns about the flexibility of automated systems vs their more standard counterparts. When creating a new warehouse there is always the possibility that sales fall, or the space is not fully utilised in some way. In the event that a warehouse suddenly finds itself only operating at 50% capacity for instance, it is a relatively simple affair to move the racking around, designate the space to a different sector, rent out the space – or even just cut down on the size of the workforce to save costs. With a fully automated system this just isn’t quite so simple. Excess equipment could be sold for some quick capital, but that just leaves the warehouse unable to pick back up if sales increase, while leaving half of the warehouse inoperable will only result in marginal savings in terms of energy costs. Ultimately, many companies are forced to adapt some kind of balance, reaping the benefits of automated systems where they can, while also keeping a certain degree of manual labour in place to work around it. While there is no telling if in the future the industry can adapt more effective means of fully automating warehouses, for now the decision is a difficult and demanding one for logistics and distribution managers. 36-39.qxp_Layout 1 05/06/2020 09:59 Page 4Next >