< Previous40 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk MANUFACTURING SPOTLIGHT Investing in the future Investing in smart technologies can help to ease the supply chain burdens currently impacting manufacturers. 40-43.qxp_Layout 1 03/11/2021 11:55 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 41 MANUFACTURING SPOTLIGHT Manufacturers are stuck between a rock and a hard place, experiencing high demand alongside supply chain challenges that leave them struggling to keep up with orders. Despite this, UK manufacturing total order books have improved to their highest since 1977. The headline finding comes from the September CBI Industrial Trends Survey of 273 manufacturing firms and follows the strong results observed in August. While this is clearly cause for celebration, the industry has seen a continuing slowdown in output growth. Although there was a slight pick up in stock adequacy, it remained considerably below average and close to the previous month’s record low. There is hope on the horizon, however, with expectations for output price growth in the coming quarter remaining strong. Yet here in the present, shortages of inputs and delivery delays disrupting production schedules are leading to slower output growth and resulting in marked increases in input prices. Increasingly, manufacturers are moving towards the smart factory concept which involves the implementation of smart technologies to automate, augment and improve the manufacturing process. This won’t solve shortages of input, but it can help to streamline operations, reduce downtime with inventory replenishment and save money in the long run. Machine sensors, for example, allow factories to measure and reduce energy and water waste leading to lower operating costs and more © Shutterstock /PopT ika 43 Á 40-43.qxp_Layout 1 03/11/2021 11:55 Page 242 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk MANUFACTURING SPOTLIGHT © Shutterstock /metamorworks 40-43.qxp_Layout 1 03/11/2021 11:55 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 43 MANUFACTURING SPOTLIGHT environmentally sustainable operations. Using these sensors can also lead to better asset tracking, triggering orders when stock runs low so manufacturers can completely automate their inventory replenishment process. The same technology can also automatically identify potential equipment failures before they happen, saving on more expensive repairs and protracted periods of downtime. There will always be some resistance to new technologies, but most companies in the industrial manufacturing sector are exploring this concept or at least looking into smart technologies. The downside, however, is that the right infrastructure is needed before any Internet of Things (IoT) system can be installed. This obvious requires investment. Costs here can be steep – even prohibitive – but at a time when the economy is still in a fragile state and supply chain issues are rife, investing in technologies that will help to future-proof the factory floor can be an attractive prospect. But there’s more to the smart factory concept than just IoT. The so-called ‘lights out’ production concept – where manufacturing activities and material flow are handled automatically – is becoming a hallmark of modern manufacturing. Obviously, this can’t be achieved by a traditional workforce and so robots have become much more commonplace on the factory floor. These systems help to improve product quality and uniformity and, crucially, cut manufacturing costs by replacing increasingly expensive human labour. As well as improving efficiency, lowering operation costs and boosting output, investing in robots makes sound financial sense. Over the last three decades, the average robot price has fallen by half in real terms whilst the cost of labour has continued to rise. Robotic systems also have the advantage over IoT as they’re comparatively easy to assemble, install and integrate thanks to overall advances in computing power, software development techniques and networking technologies. Whether working in tandem with robotic systems or as part of a wider IoT, augmented reality (AR) has a number of practical applications on the factory floor. Although the AR dates back to 1968, the technology is still in its infancy, but there’s a huge scope of what it can offer manufacturers. It can be used to train maintenance engineers on the specific environment they will encounter, making it a boon to hazardous environments such as food and drink and pharmaceutical manufacturing. For facilities managers and site operators, the technology allows off-site staff to experience the same view as a maintenance team on site. By projecting information on a heads-up display, augmented reality can also assist in complex assembly, something that’s already being used by companies like Boeing and will likely permeate the industry in the years to come. Yet this is only one side of the issue, with the other being staff. As we’ve already touched on, labour costs are rising and companies may be keen to automate more and more parts of their production line, but there will always be a place for human workers, especially in the manufacturing industry. Training is an ongoing process and should be regularly seen to, especially when adding ever more complex machinery and equipment to a production floor. As well as ensuring staff have the skills needed to ensure continuity and efficiency, it’s also an effective staff retention tactic and is often more efficient than taking on new employees. By tying staff training into the installation of new equipment, disruption can be kept to a minimum as there is always an expected period of downtime expected in these instances. 40-43.qxp_Layout 1 03/11/2021 11:55 Page 444 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk MATERIALS HANDLING Keeping things There’s no silver bullet or single solution to solving the issues currently plaguing the materials handling sector. But with a multi-pronged approach of boosting job opportunities, wages and training in the logistics industry, investing in more warehousing space, and continuing to electrify road transport, it can future proofed. moving moving Keeping things 44-47.qxp_Layout 1 03/11/2021 11:58 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 45 MATERIALS HANDLING The realities of post-Brexit Britain and the promises and pledges given in the run-up to the 2016 referendum are incompatible. The rhetoric was about taking control, about seizing a bright shining future for the nation. Although the pandemic undoubtedly takes much of the blame, it’s fair to say that whatever new age of trading and economic prosperity Brexit was supposed to usher in has failed to materialise. Nowhere is the grim reality of post-Brexit Britain as obvious at present than in the materials handling industry. A survey undertaken by Road Haulage Association (RHA) of its members estimates that there is a shortage of more than 100,000 qualified drivers in the UK. This figure includes thousands of drivers from EU member states who were previously living and working in the UK. Not only does this present a very real risk of empty store shelves – especially as we enter the busy festive trading period – but has led to petrol stations across the UK literally running out. That’s not because we’re experiencing fuel shortages, but rather a shortage of qualified people to drive the trucks needed to deliver the fuel. To help combat this deficit, bolster fuel supply, and ensure store shelves remain stocked, the government is introducing temporary visas for 5,000 fuel tanker and food lorry drivers to work in the UK in the run-up to Christmas. If there’s a silver lining here, it’s that the key role that haulage drivers play has been made patently clear not only to government but to the public at large. Yet it isn’t only transport that has been hit by labour shortages, according to the CEO of the trade organisation United Kingdom Warehousing Association (UKWA). Indeed, Clare Bottle claims that the ongoing media attention around the driver shortage fails to reflect the wider labour shortage across the logistics sector. Speaking on BBC News, she said: “We have fewer workers than we used to have and some of this is down to Brexit. Fifteen per cent of HGV drivers were EU nationals, but the proportion of forklift truck drivers is thirty-four per cent. If anything, warehousing has been hit harder than driving the by exodus of people from our workforce.” She added: “Warehouses cannot operate efficiently unless the receipt and despatch of goods is well controlled. Driver shortages are making transport 46 Á © Shutterstock /Pajor Pawel 44-47.qxp_Layout 1 03/11/2021 11:58 Page 246 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk MATERIALS HANDLING operations more fragile and unreliable and this in turn reduces warehouse productivity – and profitability. Clearly, there is a responsibility upon both the industry and the government to ensure people are aware of the job opportunities in logistics and that there is a more coherent framework of training to address labour shortages and skills gaps. The interventions on visas and driving tests are welcome, but it is still not clear whether they will work in practice.” The pandemic has only increased the growth in ecommerce and, thus, precipitated the need for more drivers and forklift operators and more warehousing and fulfilment services. Figures from estate agency Knight Frank found that in 2020 online sales accounted for 27.9 per cent of total retail sales and, with non-essential shops closed during lockdown, ecommerce penetration rates reached a record 36.3 per cent in January 2021. In response, retailers and distribution firms have rapidly upscaled their operations by expanding delivery services. Against this backdrop, warehouse take-up exceeded fifty million square foot in 2020 compared to thirty- four million in 2019. The Knight Frank report, released in April 2021, revealed that forty million square foot of new warehouse space in developments larger than 50,000 square foot is scheduled for completion – compared to twenty million completed last year. However, even with the end of the third national lockdown in June, allowing shoppers to return to the high street, the internet will play a larger role in the retail market than it did before the pandemic. “Retailers need to embrace omni channel retail to remain competitive,” said Knight Frank. The company’s analysis shows that every billion pounds of online sales requires approximately 1.36 million square foot of warehouse space – given that UK customers collectively spent £19.5 billion at Amazon alone in 2020, the pressing need for more space is obvious. Moreover, online sales rose £34 billion year on year in 2020 and is expected to growth by a further £41 billion over the next four years. As can be expected, this massive growth is driving additional requirements for warehouse space and placing added pressure on the materials handling sector. Yet the beleaguered sector was already beset with environmental issues. Heavy Goods Vehicles (HGVs) currently emit eighteen per cent of all road vehicle CO2 emissions, despite only representing 1.2 per cent of the total number of vehicles on the road and five per cent of the total miles driven. They are, however, essential to the health of the UK economy, transporting ninety- eight per cent of our food, consumer, and agricultural products across the country. Electric vehicles have emerged as the logical solution to keeping freight moving, whilst also reducing emissions. However, battery technology is still developing and, at a time when drivers © Shutterstock /Scharfsinn 44-47.qxp_Layout 1 03/11/2021 11:58 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 47 MATERIALS HANDLING are required to stick to strict delivery schedules, charge times aren’t rapid enough and charging infrastructure as it stands is no way near abundant enough to support the nation’s road haulage industry. But what if lorries and trucks could charge while in transit? The Department for Transport recently awarded funding through Innovate UK to a consortium spearheaded by tech-based construction and engineering company Costain to lead the UK’s first ever study on the electrification of long-range trucks with dynamic charging, using overhead wires on motorways. The study is part of the £20 million put aside for zero emission road freight trials under the Transport Decarbonisation Plan (TDP) announced in July and was awarded based on the consortium’s expertise in sustainable transport. It includes Siemens Mobility, Scania, The Centre for Sustainable Road Freight (Cambridge University and Heriot-Watt University), ARUP, Milne Research, SPL Powerlines, CI Planning, BOX ENERGI and Possible. The consortium has proposed an ‘electric road system’ using the Siemens Mobility ‘eHighway’ technology, as the fastest, lowest carbon and most cost- effective route to decarbonising our road freight industry and delivering cleaner air. The nine-month study kicked off in August and is hoped to be the forerunner of a scheme that aims to see the UK’s major roads served by overhead lines by the 2030s. These eHighways allow specially adapted trucks to attach to the overhead wires and run using the electricity, like rail and trolley-bus systems. The trucks come equipped with a battery that charges while they are in motion so they can detach to both overtake vehicles and reach their destination with zero emissions from start to finish. Consortium members Siemens Mobility, Scania and SPL have previously trialled smaller electric road systems in Germany and Sweden, with this UK initiative being the first in the world to investigate deploying it at a much larger scale. The project will look at electrifying at least nineteen miles of the M180 as the pilot – linking Immingham Port with the logistics hubs of Doncaster and its airport. The partners plan to take the lessons learned from Europe, and provide technical, economic, and environmental recommendations for installing a proof-of- concept system with a bigger demonstration fleet. A fully operational electric road system across the UK would be expected to create tens of thousands of jobs across a range of green industries, with around 200,000 new electric trucks needing to be built over a ten-fifteen-year period. This will also provide an opportunity to completely revamp the UK truck manufacturing industry and its supply chains, futureproofing it by accelerating fleet digitalisation; a key lesson learned across the industry as it recovers from the 2020 pandemic’s disruption. © Shutterstock /Roman Zaiets 44-47.qxp_Layout 1 03/11/2021 11:58 Page 41 Years Subscription £33.60 2 Years Subscription £63.00 3 Years Subscription £81.90 E A S T M I D L A N D S L EE A D I N G B U S I N E S S M A G AA Z I N E APRIL 2021 £3..50 COMMING OUT THE C E OTHER SIIDE YY FACTOR OFFICE LOGISSTICS Engineering the fut TIOT AUTOMA Y AF WW ACTOR ning to Retur SOLUTIO OFFICE etur WW EASTMIDL ON The Gol LOGIS ficef o the of ANDSBUSINE ONSriangler lden T ESSLINK CO U STICS w UK www.blmgroup.co.uk & Call now to subscribe on 01472 310301 8 or order online www.eastmidlandsbusinesslink.co.uk/subscribe ORDER FORM First name: Last Name: Address: Town: County: Post Code: Tel: Mobile: Email: Payment by DEBIT/CREDIT card Name as it appears on card: Type of card: Mastercard Visa Visa Debit Other Card Number: Card Verification number (3 digits on signature strip) : Expiry Date: Amount Authorised: Cheque enclosed YES / NO Please post this form back to: Subscriptions, East Midlands Business Link Magazine, Armstrong House, Armstrong Street, Grimsby. N.E. Lincolnshire DN31 2QE Make cheque payable to Business Link Magazine Group 1 Year: £33.60 2 Years £63.00 3 Years £81.90 or scan QR code Secu lifelinlif li FINANCE CO RPORATE uring a i e i a FINANCE CO RPORATE lifelin L ine L s Link t Midlands Busines Eas42 tmidlandsb eas.www tmidlandsbusineeas.ww w .ukoc slink.busines t Midlands Busines Eas .ukoc slink.es © Shutterstock /Ascannio 52 s Link S ECURITY C c Combati i crimc yber b ting imei S ECURITY e and servic security serio ork bec ith wW yc pandemic, runni have faced malic confidential mat e cyber sec ensur COVID-19 outbr work f data a oelectr s com A taff a s and its s e a busines es that ensur ecautio , implementing the right pr ,ously easingly digital, it is vital th oming incr c crimc yber . ely ating secur e operar oducts ons and using pr e cyber ses tak hat busines ime budgets and less security egular activities esume r es can r esponse plan in However with a r o likely to experience higher luctant to invest in cyber security e a victim of a security incident, e new customers. Not only quir ficultf tation which may make it dif ith smaller b W ..quickly place, companies esult. costs as a r e also practices ar ele r those that ar e likely to be mor etain and acq to r eput damage to r ing the gamut - involving -attacks during the - cious cyber ms ge number of fir terial. A lar curity and the safety of e scrambling to eak, businesses ar r om home, exacerbated by the fr ff , and mor , and technology e staf eliant one r , become mor, onically e work mpanies carry out mor ajampaa ya Y accounts and da es in plac measur it comes to cybe For business o businesses. e rises This figur -a- cost of a cyber esulted in a loss r to-date anti-viru ee only eighty-thr eaches of the br each - meanin br ma identify abnor e u businesses ar working. The ne heightened beca months and that cyber security br businesses (thirty nm New gover e, ph ransomwar eats and s Thr data and emails. access important es addition equirr authentication, w something as sim peak levels of se can be utilised to ecau variety of pr expertise, SMEs e facing a d f and attacks st f e e than befor e less awarms ar ng fir al activity which could indicate a using security monitoring tools to ew data highlights that fewer cause of the pandemic and home ganisations has t cyber risk to or eaches or attacks in the last 12 br eport having ty-nine per cent) r es show that two in five ment figur hishing, DDoS attacks, et al. e this with the backups estor cted, one can disconnect them, . Then, should nal serverexter e is by backing up files ar oyees. The primary way to handle an infected link or attachment they pay a ransom. This often en to publish or not let a business ss inals block access to a company’ e, t to businesses is ransomwar solutions t applications holding sensitive nal verification, like a PIN, to oves security as it which impr mple as enabling multi-factor ecurity though. This may involve e a business operates at o ensur oducts and services that utions, pr e ae ar gets. Ther e easy tar ar e wipe the data r systems be infect equently to an fr risk of ransomwa clicked by emplo ough a occurs thr access it unless t eate data and thr crimie cyber wher eat A major thr eats and s Thr ata. Businesses will have to deal , bank, eat to pr ce a thr oductivity fectivef , er security, with a lack of ef e is a lot at stake when owners ther ge to £13,400 for medium and lar attack on a business is £8,460. ss of data or assets, the average each has e a br e. Wher us softwar e per cent of businesses have up- e facing - and f arf and attacks staf © Shutterstock /Thitichaya s Link t Midlands Busines Eas 44 costs and poten e, m and softwar paralyse a netwo with disruption, accounts and da tmidlandsbusine eas.www .ukoc slink. tmidlandsbusines eas.www d change passwor e wipe the data, r egulatory fines, as well as ntially r emedial e will be r meanwhile ther e dwar oy key files, har ork, destr as an attack on systems may ata. Businesses will have to deal .ukoc slink.es 46 ds and update/run anti-virus e this with the backups, estor t Midlands Busines Eas Á 54s Link 54 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk www.eastmidlandsbusinesslink.co.uk AUTOLINK East Midlands Business Link 55 AUTOLINK Kia K8 Kia have really stepped up of late with designs that make the brand stand out. The Kia K8 combines cutting-edge innovation, dynamic performance and contemporary design to establish new benchmarks for premium quality in the saloon class. The exterior runs with a bold new design that embodies the premium qualities of the K8 and according to precise specifications from the BMW Group and integrated into model-specific high-voltage batteries. This gives the xDrive40 a range stated at over 249 miles. The most exacting environmental compatibility requirements have been put in place throughout the value chain and for the full life cycle of the BMW iX. The car is currently in the final phase of its series development. Market launch will get underway at the end of 2021. Ford Mustang Mach 1 The Mustang Mach 1, the most track- capable member of the Mustang line-up to ever grace UK shores – and perhaps one of the most recognisable names in automotive history - arrives in early summer. Performance is boosted to a level worthy of the iconic Mach 1 moniker with enhanced aerodynamics, a specially-calibrated 5.0-litre V8 engine and uprated cooling for improved track capability. The Mach 1 is also the first production Mustang in Europe available with a high- performance TREMEC six-speed manual transmission, featuring rev-matching technology for seamless down-shifts and an upgraded oil-cooler system for high- demand performance driving. You won’t be rocking up to the office in this, but you may certainly enjoy blazing down country roads with it outside of work. Mercedes-Benz EQS The EQS is the first all-electric luxury 56 Á B MW iX xDrive40 Kia K8 Flash and new What’s the point of working hard if we can’t enjoy the fruits of our labours? Today, we look at new motors entering the market that any businessman or woman would be proud to own, both for business and for pleasure. takes inspiration from high-end luxury yachts. A progressive but graceful front-end featuring the frameless Tiger Nose Grille is complemented by a muscular ‘fastback’ rear with strong, dropping shoulders. The front-wheel-based AWD K8 will be available with the 3.5 GDI Smartstream powertrain that helps to deliver tailored power and performance driving characteristics while achieving improved fuel economy and reduced emission, perfect for those who want style and elegance but who are also conscious of the environment. BMW iX xDrive40 The BMW iX heralds a new age in mobility. It combines trailblazing design and modern luxury with the latest innovations in automated driving, operation, connectivity and digital services. In the BMW iX xDrive50, the drive system – which features one electric motor on the front axle and another at the rear axle – produces total output of over 370 kW/500 hp and enables acceleration of 0 to 100 km/h (62 mph) in under 5.0 seconds. The battery cells are manufactured Recently, I was drawn towards a quotation by the founder of Amazon, Jeff Bezos, which I would like to share with you: “If you don’t understand the details of your business, you are going to fail.” My initial response to reading this was something along the lines of: “Bit harsh there Jeff!” But coming from one of the most successful entrepreneurs out there, who is now allegedly the richest person in the WORLD, with an estimated net worth of 197 billion US dollars (as of April 2021), we can’t not listen to his advice when it comes to business. I particularly like this quotation of his because in my experience ‘detail’ is often so overlooked in business. I’ve lost count of the times over the years where the attention to detail has been completely disregarded, and detail in my opinion is the MOST important part of business. Our businesses are made up of a million and one different aspects - these are the details that when encompassed in your unique identity, form a unique brand and together are the difference between a successful business and an unsuccessful one. Whether you are aware of it or not, those looking from the outside into your business will certainly notice them (or lack of them), even if you don’t. Yes we should know our numbers. Yes we should know our audience. Yes we should know our core values. Yes we should know our products/services. Yes we should understand our operations. Yes we should have a marketing strategy. Yes we should know our ‘why’. ... and on it goes... By Fiona Duncan-Steer, founder of RSViP Business Networking Agency 22 East Midlands Business Link www.eastmidlandsbusines slink.co.uk NETWORKING Taken one step further, do you know the bare bones - the ‘details’ of your business? It may seem daunting to embark on the process of analysing every little thing you do, identifying what works and what doesn’t, continually experimentin g with new ideas and highlighting aspects of your business you have never really paid attention to before, but looking at the bigger picture, if you see it as your contribution towards creating a more successful business for yourself and therefore life for yourself, it won’t seem like such a burden and you may even start to enjoy it and in turn make it a part of your day to day routine. Pay attention, monitor and highlight every aspect, however small WITHIN the above larger elements that make up your business and that is where the sweet spots are, that is where you will discover your golden USPs, that is where innovation derives from, that is where inspiration lives, waiting to be discovered. The detail is what sets your business apart from the rest - pay attention to it. …pay a ttention to it For help in identifying the details of your business further, contact me: fiona@rsvipnetwo rk.co.uk www.rsvipnetwor k.co.uk www.fionaduncan steer.com It’s all in the detail Delivered straight to your door It’s the best value around 48.qxp_Layout 1 03/11/2021 12:01 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 49 WATER & WASTE MANAGEMENT Water resources are under increasing pressure from climate change, population growth and the need to protect the environment. However, increasing ambition from government, water companies and businesses are together having a profound impact in the amount of water that’s being used and how wastewater is being treated and recycled. In the corporate world, the onus is on reducing water usage and making better use of what water is used. Even media, marketing and other non-water intensive industries still use water every single day. Toilets, sinks, water coolers, dishwashers, not to mention the water involved in the commercial cleaning of an office block or building – it all adds up. Fortunately, there are several easy ways to reduce consumption and use water more efficiently. There are simple and often inexpensive options to help reduce water usage in the workplace, such as fitting water aerators to taps. Also known as flow regulators, this small attachment controls the amount of water that flows through the tap without affecting water pressure as they mix the water with air. Then there are displacement devices which can be placed in toilet cisterns so that less water is used per flush. Alternatively, companies can install duel flush toilets. If an office or facility has a garden, a water butt can be installed to gather rainwater which can then be used to water the grounds. Even with solutions such as these, companies should still carry out regular water audits to determine where water inefficiencies are taking place. One of the last drop Down to the 50 Á © Shutterstock /New Africa 49-51.qxp_Layout 1 03/11/2021 12:02 Page 1Next >