Stephen Phipson, chief executive of the newly rebranded Make UK, started proceedings by formally announcing the EEF’s name change visible on the walls and outside the conference centre. The new brand is meant to reflect the changing industrial technologies; a more dynamic way of ‘making’ with the rise of Industry 4.0, and the challenges or opportunities it creates.
Economic and political uncertainty
The looming threat of Brexit was hard to avoid for any speaker, but the unwelcome news of Honda closing its Swindon manufacturing plant the day before the conference was certainly the story most prominent in people’s minds.
There was much sympathy from the conference speakers as you would expect, with Business Secretary Greg Clark reassuring those affected: “We completely understand the challenges that you face; and we will do everything that we possibly can to support every single person in the community, in the workforce, in the supply chain.” He was later asked with typical British sarcasm if he would ask if James Dyson wants to build his electric cars in Swindon?
Andrew Neil, BBC presenter for Politics Live and This Week, and first keynote speaker, outlined the shifting political landscape and went into specifics of how the radical left and right wings of the major political parties challenge the market economy that manufacturers rely on.
He later gave a scathing critique of the political class and its failure to deliver a Brexit deal agreed upon by Parliament – something the CBI and Make UK have been insisting is the biggest priority so that businesses can have certainty and make appropriate preparations and forecasts.
Later Mr Clark admitted: “A situation in which our manufacturers don’t have the certainty they need about the terms under which over two-thirds of our trade will be conducted in less than 40 days’ time is unacceptable.”
Mr Neil concluded with an optimistic prediction (despite the atmosphere of uncertainty in the room) that some sort of deal will be achieved, followed by an economic bounce as businesses are given confidence and proceed with investment.
Industry 4.0 technologies
The need to modernise the manufacturing industry and stay globally competitive was a major concern at this year’s conference. The Modern Industrial Strategy, officially announced in November 2017, aims to boost productivity by backing businesses to create good jobs and invest in skills, industries and infrastructure.
A close alignment between government and industry was highlighted by multiple speakers, namely Chancellor Phillip Hammond at the Make UK annual dinner that evening.
He said: “Government understands its role in supporting UK industry through the coming tech revolution and in driving up productivity for the benefit of our businesses and our citizens – delivering our vision of a high-wage, high-skill economy. The Modern Industrial Strategy encapsulates our clear commitment to play that role.”
A vital part of this initiative is Made Smarter, a partnership between Government and industry, and led by the CEO of Siemens UK Juergen Maier. It aims to encourage and help SME firms adopt new technologies that can help them stay competitive and create more jobs.
The North West pilot scheme for Made Smarter was launched in November 2018, and has planned to engage with 3,000 SMEs based in the region to boost productivity.
Mr Clark commented at the conference: “I hope that Made Smarter will support small manufacturers right across the UK. In pursuance of that goal the first wave is in the North West, working with the towns and cities in the region – Cheshire and Warrington, Cumbria, Lancashire, Liverpool and Manchester – to make sure that small businesses there are first to benefit to really reinforce what is already a strong cluster of manufacturing excellence.”
Mr Hammond later discussed the national rollout of Made Smarter: “In response to your plea for a nationwide rollout of the North West pilot of Made Smarter, that I am delighted by your enthusiasm for this ground-breaking programme. But it was only launched in November, and the point of piloting is to learn what works and what doesn’t. But I can absolutely promise you that what works will be rolled out in due course.
“As well as making sure that British workers have the skills they need to thrive and prosper, we must also invest in the technologies of the future.”
The skills puzzle
The need to attract and train the next generation played a key role at the conference this year, with multiple keynote speeches highlighting how important the perception of manufacturing is to the public.
Make UK has previously asked British citizens to guess how UK manufacturing ranked globally, and the average guess was 56th. In reality we’re 9th in the world. This misperception reflects a broader pessimism about the manufacturing industry in public discourse that may discourage younger generations from choosing a career in these sectors.
Countering the misperceptions with initiatives like This is Engineering or National Apprenticeship Week help rebrand the industry and give real-life examples from inside fields of work – and ultimately attract and train more younger workers.
Minister for Business and Industry, Richard Harrington, who spoke with Mr Clark in a Q&A, admitted the Apprenticeship Levy is currently under review to help maximise its benefits. Mr Phipson agreed, adding that there has been slow progress with the initiative, but change is coming.
Jeremy Corbyn, leader of the Labour Party, also used his keynote speech to announce a commission on lifelong learning to develop the party’s policy of free education. The Commission will bring together 14 experts from across education and top names in their fields.
Mr Corbyn said: “The Commission’s task is to devise an inclusive system of adult education to be implemented by the next Labour government that will transform the lives of millions and reskill our economy. Lifelong learning will be available to everyone no matter their background, employment status, or previous education.”
Conclusion
The sentiment at this year’s conference spelled uncertainty ahead, but as with other industry events since the referendum result, the mood was optimistic. This is reflected in many of the industry reports like the CBI Industrial Trends Survey or the Markit/CIPS UK Manufacturing Purchasing Managers Index that express more positivity and confidence in manufacturing than typically found in the national press.
Finding answers to issues facing manufacturers in 2019, like implementation of Industry 4.0 technologies and solving the national the skills gap, will only weaken the effect of global and political forces beyond the industry’s control.
Make UK www.makeuk.org
