Nick Barrett, Editor
nick@maintenanceandengineering.com
@MaintOnLine
Sustainability and the challenging demands of making the transition to net zero carbon are quite rightly being placed higher and higher on the agenda by manufacturing and engineering companies.
The sector is the third most polluting in the UK according to the independent Climate Change Committee and is therefore well placed to move the needle on reducing emissions.
Although larger firms are at an advantage with the resources and skills to take climate action – and many have already detailed their decarbonisation strategies – much will depend on action by smaller businesses which combined make up the vast majority of industry.
It was encouraging therefore to read recently about research which indicated that more than two thirds of small manufacturers are planning to take steps to improve areas of sustainability during the year ahead. This is well above the all-industry national average of 58%.
The findings from Novuna Business Finance show that of those planning focus on sustainability, around 36% are investing in sustainable infrastructure and new lower carbon equipment.
It seems then that manufacturers of all sizes are taking the climate issue seriously, and it is to be hoped that they will continue to do so. However as inflationary forces continue to pile on the industry, the escalating cost of doing business risks halting these positive moves in their tracks.
Firms were already complaining of a squeeze on margins following major increases to raw material, energy and labour costs prior to the onset of the crisis in Ukraine, and this conflict is only expected to drive prices higher.
Government, it was felt by some in the industry, was in a position to help reduce these burdens on businesses in the Spring Statement in March. Sector commentators say the Chancellor missed an opportunity to take action on energy costs, for example.
A promise to cut tax on business investment in the Autumn Statement is likely to be welcomed thought. This should be set up in such a way as to incentivise spending on greener technologies and processes.
For the time being however, it could be that despite growing pressure to start turning climate ambitions and strategies into tangible actions, green investments and measurable results, many businesses will decide that navigating through the immediate economic challenges must take precedence.
This would be an understandable response. But for those with the resources to do so, it should be pointed out that, over the long term, there are bottom line benefits to be gained from investments in digitalisation and Industry 4.0 technology which can bring both sustainability and productivity gains.
Up front costs of innovation are often high but, once changed, currently fossil fuel intensive manufacturing processes will become more operationally cost efficient.
Effective maintenance too must play a role; machines that are running efficiently with high yield will eat through less raw materials and consume less energy, which have been among the most difficult aspects of manufacturing operations to decarbonise.
And as Make UK’s Net Zero Roadmap emphasised earlier this year, preparation of decarbonisation strategies is an essential first step to taking climate action.
Shrinking the engineering skills gap
Skills gaps continue to take focus as one of the most critical threats facing businesses in our sector.
As a number of key industry players tell us in an article on page 30 of this issue, shortages of talent are a significant concern and while it is important to acknowledge that some progress has been made in this area, the problem is not expected to go away any time soon.
Firms also highlight that – although technical skills will remain critical and are in short supply – it is not just training in traditional engineering practices that will be needed to take the sector forward into the future.
Increasing emphasis is being placed on adaptability and developing well rounded skill sets – including digital capability – and recruiting more people from a greater diversity of backgrounds will be essential.
Companies told us about some of the commendable actions they are taking individually to improve equality, diversity and inclusion.
However in addition to these, industry-wide initiatives are also crucial for increasing the visibility of the sector and getting more young people enthused by the prospect of a career in engineering.
It was therefore welcome to hear about plans for the inaugural National Manufacturing Day campaign which is led by Make UK and is due to take place on 7 July this summer.
The campaign, it is promised, will see manufacturers “throw open their doors” and give local communities the chance to see for themselves what opportunities a career in the sector might hold.
The aim is to embrace all age groups, from school leavers to more experienced workers looking at reskilling. A further focus will be to demonstrate the value of a manufacturing apprenticeship and promote these opportunities particularly to women and other minority groups.
It will hopefully be through initiatives like this that bring the industry together and allow it to show off the exciting opportunities available to those who embark on a career in engineering that our long-standing skills gaps can finally start to be plugged.