A paean of praise for the UK

Reports in the media over the last few years have highlighted the exodus of many manufacturing production facilities from the UK to Asia, drawn by cheaper labour andlower running costs.

Recently, however,some analysts and manufacturers have moved away from this trend — believing that British-manufactured products are not only better for the UK economy as a whole, but also allow the manufacturer to control quality and the manufacturing process more closely, so providing a higher quality product to the end user.

An example of a company that has decided to keep its manufacturing in the UK is Reading-based Applied Weighing, which  provides weighing systems to UK process industry sectors such as food, plastics and pharmaceuticals.

While some of its competitors have moved production to Asia, it continues to research, design and manufacture its products in the UK.

‘We have a number of engineers who are developing new products on a full time basis,’ says Rod Morgan, Applied Weighing’s sales director. ‘Keeping our designers in the UK means that they are developing weighing systems specifically for the UK industrial market. Manufacturing them in the UK means that we provide jobs and can trace exactly who has made a product and when. Controlling quality here is of the utmost importance. Here we not only understand our market, but also understand our product and so can sell more effectively. In addition, if our customers have a problem, then maintenance engineers can solve the problem immediately.’

Product innovation and research anddevelopment is seen by many analysts askey to the survival of the UK manufacturing industry. This is key to Applied Weighing’s business strategy.

‘We have recently designed a number of new products in the UK,’ says Morgan, ‘and they were a success from the word go, because our designers knew where there was a need in the marketplace. We’re developing and innovating all the time.'

As well as the need to keep innovation in the UK, lean manufacturing is also now seen as vital if the UK is to remain competitive against rapidly growing countries like China and India.

Cardiff University’s Prof Dan Jones is an expert on the subject of lean manufacturing in a globalised world. He argues that ‘oceans are incompatible with lean manufacturing. Products should be made as close to their market as possible’.

His main concern is that manufacturers are not able to keep close control of their supply chain. This may mean inefficiencies in product processing, product importation, as well as end users purchasing a product that is not made to the required standards. Lean manufacturing also means supplying customers with products quickly from the time of order.

Manufacturing abroad often involves a lag time of up to eight weeks before delivery, and even longer if a link in the supply chain goes wrong. Mass manufacturing simple bulk orders maybe cheaper — although take longer for completion — but, for those companies that require specialised products for specialised applications, choosing a nearby producer will allow simpler communication and potential amendments to an order.

New legislation in Europe requires that UK manufacturing adhere to strict health and safety regulations. The ATEX Directive, for example, grades a factory operation interms of explosive potential. Machinery that operates within an explosive zone must be manufactured to a particular standard.

Companies investing abroad will want to know that local plants will be updated and adopt these higher standards of health and safety. In the UK, investors will be certain of these types of risks. As Dick Vincent, head of electronics at consultants KPMG comments:

‘One by-product of outsourcing manufacturing is that managers will have to manage suppliers, rather than their own processes. This requires a different set of skills and tools, and quality control can be difficult.’

Morgan at Applied Weighing agrees: ‘Manufacturers in the UK, including ourselves, have had to work very hard over the last few years to bring processes up to the latest health and safety standards.However, we are now in the enviable position that we can trace all our raw materials, can account for our manufacturing process, and understand what the legislative requirements are in our market. This makes our service and our product of the highest quality.’

Clear social responsibility strategies are also needed if companies are to avoid the ethical and environmental risks associated with moving manufacturing abroad. The long-term effects are potentially irreversible if the brand is damaged, or if public perception is that of a ruthless organisation exploiting cheap labour. There are many reasons why companies like Applied Weighing choose to stay in the UK,  but in Morgan’s view, ‘while the tiger and dragon economies of India and China will not move away, it is up to UK manufacturers to fight back with UK expertise in innovation in design engineering and superior sales and marketing experience’.

This is why manufacturers like Applied Weighing remain profitable, he believes, and it is attracting foreign investors to the UK.