Are robots the answer to South West’s worst manufacturing quarter in a decade?

Manufacturing | Reports | South West | Technology

The manufacturing industry has recorded its worst quarterly performance in a decade, according to new statistics – and businesses are being urged to embrace new technology to help them through tough times.

The latest South West Manufacturing Barometer report highlights an increased number of companies reporting reductions in sales, profits and staff numbers that at any other time in the past 10 years.

Almost half – some 45% – of the region’s manufacturers experienced a fall in profits during that period.

However, according to Simon Howes, Managing Director of the South West Manufacturing Advisory Service, firms could be taking steps to improve their performance by utilising new technology, including robots.

The same report shows just 18% of the region’s manufacturers have so far introduced robots into their operation, and although another 13% are weighing up the idea, nearly 70% are unsure or have no plans to do so.

Mr Howes believes this is hampering their ability to thrive in a challenging economic environment.

He said: “With both Brexit and a potential change in government causing ongoing uncertainty, the Manufacturing Barometer shows manufacturers are finding their ability to recruit, invest and increase sales is ever more restricted. So finding technological solutions is increasingly important.

“And there is an opportunity to do more with robots: you can see this in the government’s Industrial Strategy, the continuing drive to increase productivity, and the need to find new ways to operate with fewer staff.

“Although the UK ranks as the 8th largest industrial nation, we are 22nd in the global league of robot adoption – we must ask why that is, and this is what we set out to explore in our study of the South West’s SME manufacturing sector.

“Three important things came out of our research. The first is the simple truth that so few SME manufacturers in the region are using robots in their businesses. Secondly, a belief that low volume, variable or difficult to handle products make robots unviable. Thirdly, more than one third of SME manufacturers who do not use robots are unsure if their competitors do, raising questions around awareness of what is actually possible for them.”

Simon Howes says manufacturers in the South West must look again at robots and at how their competitors are using them.

He continued: “We also ask robot suppliers to look specifically at SME manufacturers’ concerns and provide better awareness of the latest solutions.

“If we fail to develop and communicate cost-effective solutions for the large group who make low volume or difficult to handle products, the adoption of robots will continue to stall.

“It also seems to be true, as the Department for Business, Energy and Industrial Strategy highlights, that a lack of awareness around robots is harming the productivity of businesses, particularly for SMEs.

“For the potential of robots to be realised, the South West’s SME manufacturers need much better awareness, tailored advice and flexible support to help them plan and integrate robots into their businesses – this is a huge challenge, but one we can overcome.”

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