Alongside traditional business challenges such as rising production costs and skills shortages, North West manufacturers are increasingly concerned about offshore competition and ‘green’ legislation, a new survey has found.
The Manufacturing Challenges survey, by Manchester’s Manufacturing Institute, captured the views of nearly 200 North West manufacturers across the industrial spectrum – from aerospace and engineering to electronics, food and packaging.
Not surprisingly, top business priority now and over the next three years is reducing production costs, with the need to improve sales and marketing also high on the agenda. And companies are already anticipating growing environmental legislation in the near future.
There is real concern that skills shortages at home coupled with increasing offshore competition will impinge more heavily on UK businesses. Meeting these challenges, many businesses have tapped into free support from The North West Manufacturing Advisory Service (MAS) which helps companies improve productivity, innovation, supply chain and environmental performance.
As a result, since 2002 the Manufacturing Advisory Service (MAS), which is delivered by The Manufacturing Institute, has benefited North West companies to the tune of £429 million in increased productivity and efficiency, and created or safeguarded nearly 3,500 jobs.
Every North West manufacturing business – no matter how big or small – is eligible for a free annual support visit from MAS, a service delivered in North West England by The Manufacturing Institute.
The fully funded support visit is designed to review manufacturing processes, supply chain or innovation and product development, identifying key areas for improvement and recommending an action plan. Subsidised follow-up support is available to SMEs to help implement the key actions.
“It’s a tough world out there and manufacturers need all the help they can get,” said MAS product marketing manager Lisa Kean. “We’re here to help regional companies to meet the business challenges that this survey reveals.
“Money that is often tied up in processes can be freed up within a few weeks, generating significant cash benefit. Removing ‘waste’ processes will also free up capacity and enable businesses to redeploy staff to more valuable activity such as product development or supplier management.
“MAS practitioners are hands-on people selected for their ability and track record of achieving the ‘unthinkable’ in manufacturing firms. They balance shop-floor know how with strategic vision – rolling up their sleeves at both shop floor and senior management levels to assist in getting the job done. They understand that the key to a successful improvement programme is managing change and they support companies every step of the way, mentoring, facilitating and training where necessary.”
The Manufacturing Institute survey showed that today’s ‘top five’ challenges are: reducing production costs; managing increasing raw materials costs; skills shortages and people development; managing supply chains, and coping with rising energy costs.
As for the future, while the need for business growth remains number one priority, investment in innovation and anticipating more environmental compliance are major concerns – coupled with an optimistic determination to retain UK manufacturing in the face of rising overseas competition.
For more information about the MAS North West service call 0800 458 9585.