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THE MANUFACTURING AND ENGINEERING SECTORS CONTRIBUTE £799 BILLION TO THE UK ECONOMY 1 THE TRUTH BEHIND THE MYTHS

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http://www.nwda.co.uk/pdf/ManufacturingMyths.pdf

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The manufacTuring and engineering secTors conTribuTe £799 billion To The uK economy1

THE TRUTH BEHIND THE MYTHS

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myTh 01 manufacTuring Jobs are monoTonous, sTrenuous and loW Paid

myTh 04 manufacTuring offers liTTle career Progression

myTh 02 There is no long-Term fuTure for uK manufacTuring

myTh 03 manufacTuring is dirTy, dePressing and dangerous

myTh 05 uK manufacTuring is being lefT behind in The Technological reVoluTion

myTh 08 manufacTuring is an unglamorous, loW-Tech indusTry

myTh 06 uK manufacTuring cannoT comPeTe againsT loW-Wage economies

myTh 07 any decline in manufacTuring Will haVe liTTle imPacT on The uK economy

myTh 09 manufacTuring is noT a creaTiVe indusTry

myTh 10 manufacTuring Jobs are only for The underachieVing, less academically able

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The ToP 10 MANUFACTURING MYTHS

uK manufacTuring is in danger of TalKing iTself inTo a PremaTure graVe

Prophets of doom cite falling employment, global competition, reducing orders and international takeovers to support superficial assertions that UK manufacturing has hit the skids.

Negative stereotypes abound, with oily rags and dark satanic mills imprinting themselves into the public consciousness. And the funeral pyre is fed by ample tales of production woe, with job losses given far greater attention than good news stories.

Fed by these myths, many parents see manufacturing as a dead-end option for their children and it fails to gain the parity of esteem with other professions that it deserves.

While it would be foolhardy to depict a state of manufacturing utopia, a robust manufacturing sector is closer to reality than the armageddon scenarios often presented.

Manufacturing has been sidelined over the past couple of decades by other rising stars within the economy, such as finance and other services, but the banking crisis and recession have forced a belated recognition that manufacturing is vital to economic recovery, particularly in boosting the balance of trade through export.

It’s time to ensure that ‘Made in the UK’ is, once again, a symbol of pride and quality. Let’s start by exploding the myths to reveal the true FACTs about manufacturing.

The uK is The World’s sixTh largesT manufacTurer by ouTPuT2

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myTh 01 manufacTuring Jobs are monoTonous, sTrenuous and loW Paid

To many, manufacturing is about endless assembly lines with poorly paid manual workers sticking cherries on bakewells, but this image is as outdated as the office stereotype of typewriters, Tipp-Ex and ink ribbons.

Today’s highly automated manufacturing businesses demand a multi-skilled workforce to service an increasingly challenging, diverse and multi-faceted industry that is continuously striving to improve, and fully engages its people in doing so. This in turn offers a varied and constantly evolving work experience.

At its recent Skills Summit, the government stated that in the new world economy, quality jobs will come from a renaissance in manufacturing and engineering. The sector is, increasingly, knowledge-led and offers premium, well paid jobs to talented individuals.

But how are we going to attract the best brains and talents into a sector that is so maligned and misunderstood? The Manufacturing Institute is addressing this challenge through its Make It in Manufacturing campaign which exposes young people to real manufacturing –

aiming to educate them about the sector and challenge negative stereotypes.

Thousands of young people and their teachers have been involved in Make It activities and it’s working. Attitudes are tested before and after events and descriptions such as, ‘boring’, ‘dirty’, ‘work for boys’ and ‘low paid’, change to ‘exciting’, ‘creative’ and ‘interesting’.

There is an urgent need to dispel the many myths and prejudices that will otherwise deprive us of the brainpower and creativity manufacturing needs.

charTered engineers can earn as much as laWyers3

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“since leaVing school in 1982 and Joining rolls-royce as an aPPrenTice fiTTer i haVe had a fanTasTically Varied career. Although it sounds a cliché, barely two days are the same! For anyone wanting a varied, evolving, and dare I say pretty well paid career, I can think of nothing that can beat manufacturing!

During my four year apprenticeship I moved departments every three months, giving me fantastic insight into all areas of the vehicle, engine and sub assembly build. Even on the production line, the part of manufacturing that most think is really monotonous work, I covered different jobs each day, learning more and more about the cars including the changes and enhancements to specification that are constantly made in a model every year.

My move into management came in the shape of Accessories Product Manager’ for Rolls-Royce. For a car enthusiast this is probably the best job in the world, allowing me to travel and work in Europe and the USA, attend prestigious motor shows across the world and as an added bonus appraise competitors’ vehicles and products too – a smaller version of Jeremy Clarkson, but without the jeans!

Today, as a MAS Practitioner, the best thing about my job is having the opportunity to make a big difference, whatever the size of business. Many companies using MAS for the first time are very surprised that we come in and waste no time in rolling up our sleeves and get stuck in to the challenges in question.”

Small imageStuart Mitton of MAS NW (left) and John Collins prepare for global growth at Harland Machine Systems

CASE STUDY sTuarT miTTon, PracTiTioner, The manufacTuring adVisory serVice (mas) norTh WesT

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myTh 02 There is no long-Term fuTure for uK manufacTuring

There is no doubt that UK manufacturing is facing tough challenges, with globalisation presenting competitive threats, but also new opportunities. Businesses have been forced to work smarter and to rethink business strategy to compete on value rather than price or volume.

Rather than sounding the death knell to UK manufacturing, it has made manufacturers identify new markets and re-evaluate their processes, products, supply chains, and customers – encouraging different models of operation, and leaner, more efficient and innovative enterprises.

Global value chains have emerged, with many UK manufacturing businesses bringing their own differentiated area of excellence to contribute to the end product and service. More and more companies are successfully combining manufacturing and service activities, with distinctions between the two becoming increasingly blurred.

As history suggests, the manufacturing sector does have impressive form in re-engineering performance during tough economic times, and becoming stronger for it.

The world faces unprecedented challenges in the coming years – from climate and demographic change, to security and infrastructure needs – and the ongoing trend towards globalisation. UK manufacturing can help find the solutions and make a key contribution to national prosperity.

uK manufacTuring ProducTiViTy has groWn by 50% since 1997

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There are many unmisTaKable characTerisTics ThaT define a benTley – handcrafTed luxury, disTincTiVe design, breaThTaKing PoWer and Performance, a refined and exhilaraTing driVing exPerience. yeT iT is The combinaTion of These characTerisTics ThaT maKes The benTley brand so uniQue. Based in Crewe since 1946, Bentley Motors is globally renowned for producing cars that fuse effortless performance with handcrafted luxury. Ninety years ago, Bentley’s founder W.O. Bentley’s set out the company’s guiding principles: “to build a good car, a fast car, the best in its class”. They are just as relevant today as they were in 1919.

Bentley became part of the Volkswagen Group in 1998 and the subsequent investment of £1bn in the Crewe site means that Bentley is now one of only a handful of automotive manufacturers to undertake all of its operations in a single location.

Every stage of the development of Bentley’s new flag-ship model, the Mulsanne, from the R&D, design, styling, engineering and build has taken place in Crewe. To achieve this and ensure the maximum potential of our manufacturing process, new facilities were installed and parts of the site re-organised to enable optimal performance and deliver a product at the pinnacle of British motoring.

Small imageBentley’s Mulsanne

CASE STUDY benTley moTors limiTed

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Images of dark and depressing factories, long hours, heavy, dirty and dangerous machinery, sit uncomfortably with the real picture of today’s dynamic and innovative manufacturing enterprises.

From hi-tech facilities to leading edge research, modern manufacturing incorporates clean room environments and ultra hygienic food and drink factories. Its diverse sub sectors range from agrochemicals and pharmaceuticals, to clean tech, electronics and nuclear submarine building.

Many firms have developed in new sectors, such as silicon design, bluetooth technology, in-flight refuelling systems, fuel cells, plastic electronics, or are developing frontier technologies such as information and communications, biotechnology and nanotechnology.

It’s not all about noisy machinery and heavy engineering. At the heart of PZ Cussons’ new £26m innovation centre, in Salford, is a perfumery, where some of the world’s most exquisite scents are developed from African cinnamon bark, French lavender, English rose and other fine ingredients.

State-of-the-art air conditioning in the testing unit ensures that only the purest of aromas are sampled, and this enables the correct fragrances to be formulated.

In the main manufacturing facility for personal wash products, significant investment has been made in advanced computer controlled liquid manufacturing, which has created a much improved working place, with minimal manual handling and significantly reduced wastage levels, improving the environment for both employees, and the wider community.

Several of the world’s most important medicines have been developed at AstraZeneca’s global research centre, in Cheshire, which invests £400 million in R&D each year, attracting scientists from around the world.

myTh 03 manufacTuring is dirTy, dePressing and dangerous

manufacTuring accounTs for 55% of all uK exPorTs4

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WarringTon based aPPlied biosysTems lTd is ParT of life Technologies, a $3.3 billion global organisaTion, Which is The leading suPPlier of life science Technology – using The PoWer of bioTechnology To helP discoVer neW Ways To diagnose and TreaT diseases. The company is a market leader in the development, manufacture, sale and support of a wide variety of instrument-based systems, reagents and software that have made a significant contribution to our understanding of the molecular foundations of life.

Applied Biosystems Ltd’s genetic analysis, PCR (polymerase chain reaction) and microbial identification tools are used in leading labs all over the world, whilst the company’s DNA analysis systems have become the mainstay of forensic DNA typing.

The Manufacturing Advisory Service (MAS) North West, delivered by The Manufacturing Institute, has been helping Life Technologies to drive continuous improvement at the North West plant – succeeding in freeing up enough capacity in its people and processes to grow through new product Introductions from the Californian headquarters.

Small imageApplied Biosystems – a leading supplier of life science technology

CASE STUDY aPPlied biosysTems lTd

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Manufacturing is a widely diverse sector providing varying levels of entry and flexible, but structured career progression. From apprenticeships to graduate entry, there’s a multitude of production and engineering roles, but modern manufacturing enterprises also require experts in areas such as marketing, sales, procurement, supply-chain management, logistics, human resources, customer service, design and research and development.

Manufacturing accounts for approximately 75% of the UK’s exports and many businesses have strong international trading links, or are part of global value chains. Virtually no other career offers such scope for international travel and cultural exchange.

Liverpool-based ColorMatrix is a classic example of modern manufacturing, employing highly skilled people in R&D, marketing, IT, and as chemists. There are 15 nationalities represented in its sales and customer service and technical teams.

Modern manufacturing businesses tend to have flat management structures and are very meritocratic, with numerous opportunities to move from the shop floor to senior management.

Your career is never pre-determined; what is certain is that any career in manufacturing can be whatever you make it and no matter where you start, it’s possible to reach the very top of your profession.

myTh 04 manufacTuring offers liTTle career Progression

engineering and Technology graduaTes are more liKely Than aVerage To be in full Time emPloymenT six monThs afTer graduaTion5

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“i Joined bae sysTems sTraighT from school aT 16 as an aPPrenTice PiPe fabricaTor. I didn’t follow the ‘A’ Level path, despite getting 10 high grade GCSEs. That’s because I saw a great opportunity to earn and learn in a job that promised new challenges, career development and the prospect of international travel.

Four years on, I have gained an HNC qualification, completed my Advanced Apprenticeship and become a Material Planner. The company is sponsoring me through an engineering degree; I’ve bought a house and am soon to be married!

My apprenticeship gave me invaluable knowledge and ‘hands on’ experience working on Astute class submarines. I was then chosen for BAE System’s High Potential Scheme, where I worked in many areas of the business.

I gained extensive knowledge of nuclear reactor systems, learnt how to commission propulsion systems, and even underwent submarine escape training. Finally, I was seconded to my current role in material planning, which I love.

Within a multi-national company like BAE Systems there are just so many career opportunities – both in the office and out in the operations areas. I believe this is a great career for both boys and girls.

Deciding to enter the world of shipbuilding at such a young age is the best decision I ever made, it has given me great opportunities both for my career and personal life and I hope that the future will hold the same prospects for me to achieve my goals.”

Small imageNicola Watkins Large image Nicola Watkins as an apprentice pipe fitter

CASE STUDY nicola WaTKins maTerial Planner bae sysTems submarines soluTions

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The UK is a world-leading exporter of high tech. In 2006, 25% of UK goods exports were high tech, compared to 22% in the USA, 15% in France and 11% in Germany. In addition, the UK is among those countries with the highest proportion of total goods exports coming from R&D intensive industries.

UK manufacturers are harnessing their advanced capabilities in tackling the huge global challenge of climate change, and are in good shape to capture a large share of these ‘green jobs’. The UK is already a net exporter of low carbon and environmental services and goods, a domestic sector that is worth £106 billion and employs 880,000 people – part of a global market worth £3 trillion in 2007/8 6.

Recent analysis by Ernst & Young7 suggests that the UK has a key role to play in developing clean technologies and products in areas such as software and electronics, pharmaceuticals, chemicals, aerospace, and the machinery equipment sector.

The UK is a world pioneer of nuclear energy, and North West England has been chosen as a Low Carbon Economic Area for Nuclear. The Northwest Regional Development Agency is leading a programme to bring together knowledge, skills and investment within the sector. As part of this programme, The Manufacturing Advisory Service North West is leading a national low carbon nuclear programme to support small and medium sized enterprises in accessing the nuclear supply chain.

myTh 05 uK manufacTuring is being lefT behind in The Technological reVoluTion

more Than 1.2 million PeoPle Will be in green Jobs by 20208

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susTainable PoWer grouP ener-g deVeloPs The adVanced Technologies for energy efficienT and reneWable PoWer generaTion – reducing iTs cusTomers’ carbon emissions by millions of Tonnes. The Salford-based company, which employs more than 750 people worldwide, is a European market leader in new generation, clean energy recovery from waste, biogas generation and combined heat and power. This advanced engineering and manufacturing capability is responsible for impressive growth, including the trebling of manufacturing capacity, and a five-fold increase in turnover over the past five years.

In 1984, ENER-G collaborated with the University of Manchester to pioneer modern combined heat and power production. It remains at the forefront of technological advancement in this low carbon sector, counting the British Royal family at Buckingham Palace and Windsor Castle among its global customers.

Outside Japan, ENER-G’s new generation energy from waste business – Energos – offers the only proven and commercially viable gasification technology capable of generating renewable energy from household waste and post-recycling residue. It offers a clean energy recovery from waste solution that provides a best practice alternative to mass-burn incineration and landfill.

ENER-G’s biogas generation systems are at the forefront of the worldwide drive to utilise anaerobic digestion as a renewable power source. The company is also exploiting this technology to derive renewable energy from methane at landfill sites and from coal beds.

CASE STUDY ener-g

Small imageManufacturing a combined heat and power unitLarge imageEnergos’ gasification technology

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The belief that UK manufacturing has all gone to China is, indeed, a myth. It is true that lower wage economies can often compete more effectively for low value-added, labour-intensive products, but while some manufacturers have outsourced elements of production, this is mainly confined to mass produced basic or commodity-like products.

The shift in UK manufacturing has been one of volume to value; domestic businesses can compete effectively on high-tech, specialised manufacturing that draws on skill, innovation and quality.

In FACT, there is evidence of outsourcing being reversed. According to a joint survey9 by EEF and BDO Stoy Hayward, one in seven British firms has repatriated production lines in the last two years. The survey showed that the rise in freight costs, wage inflation in developing countries, and the fall in sterling have all reduced the cost advantages of off-shoring.

At the same time, some companies have been disappointed with the quality and responsiveness of overseas manufacturers.

The year ending March 2009 was a record for investment into Britain, according to UK Trade and Investment statistics10. Manufacturing investment increased by 18 per cent – accounting for 327 of the 1,744 projects and 28,000 of the 78,000 jobs created or safeguarded.

myTh 06 uK manufacTuring cannoT comPeTe againsT loW-Wage economies

3.1 million PeoPle are emPloyed in manufacTuring (around one in nine of The WorKforce)

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The ‘made in uK’ badge giVes neW balance global comPeTiTiVe adVanTage. This symbol of crafTmanshiP and heriTage, combined WiTh efficienT ProducTion meThods, ensures neW balance can Win againsT riVal shoe maKers ThaT manufacTure in The far easT. The company launched its UK manufacturing facility 28 years ago. Against the trend, which has seen many competitors move production overseas, the company remains committed to manufacturing in Britain.

More than 200 people make nearly 30,000 pairs of shoes a week from the Cumbrian production site, with the majority of product destined for export across Europe and further afield where the added cachet of Made in the UK appeals to the discerning sneaker fan.

Many members of the team have worked in the business since 1982 – honing their handcrafting, design and production skills over the decades to make New Balance a worldwide market leader in performance and lifestyle footwear.

The Manufacturing Advisory Service North West at The Manufacturing Institute has worked with the business to transform internal operating procedures and improve supply chain performance to help the business increase its output to meet global demand. This has led to a 35 per cent productivity improvement in 35 per cent less space and a dramatic improvement in first time quality.

CASE STUDY neW balance aThleTic shoes (uK)

ImagesMade in the UK at New Balance© Charlie Hedley

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To believe this myth is pure economic folly. Manufacturing sustains almost 5 million jobs, directly or indirectly, and is inextricably linked to the service sector. It is clear that the traditional view of manufacturing as production alone is obsolete.

It underpins our strength as a trading nation – accounting for more than 50% of all UK exports and attracting more foreign direct investment than any other country apart from the USA.

It is ludicrous to suggest that we are living in a post-industrial society. Manufacturing is undergoing a transition: We are combining more efficient production systems with a broad range of value-adding strategies using intangibles such as branding, intellectual property, design capability, customer training, service policies and R&D. These are areas that play into the UK’s core strengths.

The banking crisis has highlighted only too plainly the risks of being over dependent on one part of the economy.

Modern manufacturing remains the lifeblood of a forward thinking, successful UK economy, without which UK plc would implode.

Imagine a life without Kellogg’s Corn Flakes drenched in fresh milk from Robert Wiseman Dairies! Imagine life without a slice of Warburton’s to dip in your Heinz Tomato Soup! Imagine all those grubby hands without a rub of PZ Cussons’ Carex to clean them up! Imagine a life without manufacturing... pretty empty, isn’t it?

myTh 07 any decline in manufacTuring Will haVe liTTle imPacT on The uK economy

uK manufacTuring conTribuTes one seVenTh of naTional WealTh

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norTh WesT manufacTuring

The economic conTribuTion of manufacTuring To norTh WesT england, Which is The uK’s ToP manufacTuring region, ProVides a ViVid illusTraTion of iTs Value:

A third of the nation’s aerospace output, with an annual turnover of £6.3 billion and including aircraft such as Nimrod, Eurofighter Typhoon and the RB-211 jet engine, comes from the North West.

More than 25% of the UK’s chemicals workforce is employed within more than 650 specialist companies, generating annual sales valued at £10.1 billion.

The North West has the largest cluster of Advanced Flexible Materials manufacturers in Europe, with 65% of the UK market – helping to pioneer advances in aerospace, automotive, biomedical, medical, chemical and environmental sectors.

The region is Europe’s biggest centre for biomanufacturing and is the UK’s largest exporter of pharmaceuticals.

The North West is the UK’s second largest automotive region, home to Leyland Trucks and three of the world’s prestige motoring brands (Bentley, Jaguar Land Rover and Vauxhall).

More than 50,000 people are employed in the region’s thriving energy and environmental technology sector, which includes one of the world’s largest concentrations of nuclear facilities and expertise.

The North West has the UK’s highest concentration of food and drink manufacturing businesses – contributing 10% of regional GVA and employing 450,000 people.

The North West is home to four of the UK’s top10 research-led businesses (AstraZeneca, BAE Systems, Unilever and Rolls-Royce) and annual private sector R&D investment is £2.2 billion – some 40% higher than the UK average.

All above statistics11

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What is a more glamorous sight in sport than the podium at the end of a Formula 1 race? Yet among the throng of supermodels, rock stars, millionaires and royalty lies an industry dominated by UK manufacturers.

An amazing eight out of the 12 Formula 1 teams are based in the UK. They use UK innovation, performance engineering and hi-tech manufacturing skills and techniques to produce some of the most advanced machines in the world. Lancaster’s Oaktec is leading the global march towards low carbon vehicles – having developed the world’s first hybrid rally car. These cars achieve top speeds of 120mph, yet can deliver 100 miles from a gallon of fuel.

The Formula 1 community borrows some of its hi-tech, leading edge technology from the UK aerospace industry. An example of excellence in this field can be found at BAE Systems in Lancashire, which is working in partnership with US companies to develop the F-35 Lightning II (Joint

Strike Fighter) short take-off/vertical landing aircraft.

Similarly, Rolls Royce, in Barnoldswick, is leading a major programme to build environmentally friendly aircraft engines.

It is such cutting edge technology that is a hallmark of UK manufacturing; an area of expertise renowned, respected, and utilised by companies worldwide.

myTh 08 manufacTuring is an unglamorous, loW-Tech indusTry

manufacTuring generaTes 13 PercenT of uK gdP12

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The a350 is conTinuing The airbus TradiTion of ProgressiVely deVeloPing and inTroducing neW and eVolVing Technologies inTo The manufacTure of successiVe generaTions of aircrafT. This commitment to hi-tech technological innovation is allowing Airbus’ UK plants to contribute considerably to an unprecedented 73 per cent of the A350 airframe (ie; not including the engines) being made from weight-saving, cutting edge composite materials such as carbon fibre reinforced plastic and aluminium lithium alloys. Like with the A380 – the largest passenger aircraft in the world – the UK is producing the A350’s wings… surely the most important part of a plane!!

Airbus in the UK strongly believes that each aircraft should have the optimum combination of hi-tech composites and metals to achieve the best possible commercial, technological and environmental performance: using composite materials in areas where corrosion and fatigue resistance is essential and using the latest generation of advanced aluminium lithium alloys where ease and speed of repair is a key issue.

This approach means Airbus has progressively introduced new materials as and when there is a sound commercial reason for doing so and when the expertise is already in place to ensure they are successfully applied.

CASE STUDY The airbus a350

Small imageThe Airbus A350 © Airbus SAS, reproduced with permission

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The UK is the original innovation nation and its world class science base contributes to its creativity and spirit of invention in developing the technologies of tomorrow.

Everything that is manufactured has to be functionally and creatively designed, whether it is a bolt to fit a screw or a sleek body panel for a new sports car. Good design is often the critical success factor and can save a company millions in production costs by eliminating waste, stock surplus and lead times.

Crewe-based Bentley are masters of design for manufacture, while Martin Conquest of Greater Manchester, has embraced cool design to create the world’s first high performance motorcycle for wheelchair users, quickly breaking into the lucrative US market.

UK manufacturing has a rich tradition for its prowess in creative development through research & development, with manufacturing contributing around 75% of national spend in this area. The pharmaceutical industry is a global leader and 15 of the world’s current 75 best-selling drugs were discovered and developed in the UK13.

BAE Systems’ extensive R&D facilities in Lancashire ensure the latest aerospace technology is assimilated into some of the world’s most advanced aircraft, including the Unmanned Aerial Vehicles project to develop ‘intelligent’ non-piloted aircraft. Pilkington’s R&D centre in Lancashire is at the centre of innovation in global glass making, while Bristol-Myers Squibb’s Pharmaceutical Research Institute in Wirral is the company’s primary research centre for discovery and development of new medicines.

myTh 09 manufacTuring is noT a creaTiVe indusTry

The uK PharmaceuTicals indusTry accounTs for 9% of global r&d exPendiTure13

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deVeloPmenT of The TradiTional hosPiTal PorTer’s chair has sTood sTill for more Than 40 years, buT medical ProducTs manufacTurer Vernacare uK has unVeiled a Pioneering neW model ThaT Will adVance infecTion PreVenTion in global healThcare. Vernacare and design consultancy Minima won the NHS ‘Design Bugs Out’ challenge to develop a radical solution to the infection risk posed by porters’ chairs which can carry bugs from the outside world into the heart of the hospital.

The new chair was designed from scratch and evaluated in collaboration with porters, nurses and other clinicians. This process started by testing which parts of the chair are touched most frequently and assessing the potential for spreading infection.

Everything from different construction techniques, materials and production processes, to the number of wheels was examined. The development team also looked at improving manoeuvrability and patient comfort, and improving the brakes and the stability of the chair.

The new easy-to-use chair has very few dirt traps and is quick and easy to clean. It incorporates an innovative footrest which rises from the floor as the patient sits down, eliminating the infection risk of using hand contact. Its tough metal frame is protected by a smooth, durable plastic body comprising three moulded plastic parts that will withstand chlorine based cleaning and come apart easily for deep cleaning.

CASE STUDY Vernacare uK

Small imageDesigning the Vernacare porter’s chair Large image Product prototype

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Manufacturing needs visionary managers... highly skilled experts...innovative people... all focused on driving continuous success. Does this sound like the disruptive child at the back of your school class?

Modern manufacturing competes on value, which is reliant on employee skill, service and expertise. Strong management and leadership is vital for the operation of global value chains and to inspire the workforce to deliver world beating products and services.

The FACT is that manufacturing is a multi disciplined industry, needing people with a variety of skills – from vocational practitioners with specific technical skills to accountants, buyers, designers, marketers and commercial managers. Companies require a dual-skilled workforce with specialist high-level science, technology, engineering and mathematics competencies, and a generic set of soft skills enabling people to work across disciplines.

Working Futures III14 predicts that the UK will need to recruit 587,000 new workers into manufacturing over the period 2007–2017.

However, the profile of workers is predicted to change. Overall, almost 47% of all employees in 2017 will be at associate professional level or higher, compared with just over 32% in 1987.

As its company name implies, Liverpool-based Brainboxes succeeds in the highly competitive specialist electronics sector by clever thinking. Its world class R&D department develops serial communication devices used in science, industry, retail and banking and many of its people have double degree level qualifications.

myTh 10 manufacTuring Jobs are only for The underachieVing, less academically able

ProducTiViTy Per WorKforce Job in uK manufacTuring is nearly £8000 higher Than The serVice secTor15

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alan Wood, chairman of siemens Plc, TalKs of The imPorTanT role academia has Played in his career. “After graduating from the University of Manchester in 1968 with a first class honours degree in mechanical engineering I worked for five years at Unilever – in project managing and plant management positions.

I then returned to university to take a second degree, gaining an MBA from Harvard University in 1975. I have always thought that this academic grounding has stood me in good stead during my career and it was always my intention to commit my academic experiences to a manufacturing career.

Following my return from Harvard, I took over responsibility for the manufacturing operations for Crittall Construction, before joining Siemens in 1981. I initially worked for the company in Germany – where if I’m honest at that time I think the academic approach to manufacturing was more vigorously encouraged. Next step was to head up Siemens Measurements in Oldham.

After a stint as Managing Director of Siemens’ Electronic Components, Telecommunications & Office Automation Divisions, I became Group Managing Director of the Energy & Industry Divisions of the company in Manchester, before becoming Chief Executive in 1998. I held this role for nine years – taking over as Chairman in 2007.”

CASE STUDY alan Wood, chairman, siemens Plc

Small imageAlan Wood, Chairman, Siemens PLC

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The Manufacturing Institute Warren Bruce Court, Warren Bruce Road, Manchester M17 1LB

Tel 0161 875 2525, Fax 0161 875 2503 Email [email protected]

www.manufacturinginstitute.co.uk

The Manufacturing Institute is an independent charity founded by North West manufacturers and universities. Since 1995 we have been blending industry know how with academic insight to help manufacturers apply the latest thinking and best practice.

With the input of our founding partners, including the Universities of Manchester and Salford, together with blue chip businesses such as Airbus, Siemens and Kellogg’s, we kick-started a range of hard-hitting educational programmes that are still delivering impressive bottom line results today.

As a charity, all the money we raise through our activities is re-invested in the charity to expand the range and quality of its remit. Our Make It in Manufacturing campaign is encouraging young people to consider careers in the sector, while we are introducing Fab Labs to the UK with the aim of encouraging everybody to innovate.

In 2002 we began delivering the North West Manufacturing Advisory Service (MAS) and were able to provide more hands-on support to companies – working within factories both at strategic and cell level – to drive up performance and profitability. References 1 Engineering UK 2009/2010 Report2 UNCTAD, 2008, Handbook of Statistics3 Engineering and Technology Board 2007 survey of Registered Engineers 4 Engineering UK 2009/10 Report5 Engineering UK Where do Engineering Graduates Go 20096 The UK Low Carbon Industrial Strategy 7 Comparative advantage and Green Business’ Ernst & Young, June 20088 The UK Low Carbon Transition Plan, National strategy for climate and energy9 www.eef.org.uk10 UK Trade & Investment’s latest inward investment report www.ukinvest.gov.uk/InvestmentReport/4046343/en-GB.pdf11 www.nwda.co.uk/publications/business/a-business-guide-to-englands-n.aspx12 NWDA NW MANUFACTURING STRATEGY13 www.berr.gov.uk/whatwedo/sectors/biotech/pharmaceutical/page10219.html14 Working Futures 2007 – 2017 January 2009 (UKCES)15 Office of National Statistics

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