The manufacturing industry faces several key challenges, including global competition, supply chain disruptions and the fast changes brought forward by technology advancements.
Developing new processes and delivering innovation within the business is seen as a key differentiator when managing market demand and competing with other manufacturers. Investing in innovation can improve a manufacturer’s capability for managing market demand by increasing efficiency, visibility across the organisation and streamlining processes and communications.
Supply chain disruption remains a significant risk. Manufacturers are still reporting challenges including customs paperwork and border delays, barriers to recruiting from the EU and trouble demonstrating goods’ rule of origin. Coupled with ever-changing regulations for environmental standards, labour laws and safety regulations, there is pressure to reduce environmental footprint and adopt sustainable practices.
Digitisation is driving a skills gap in the available workforce. SCC are delivering short-term skills through our flex resourcing model and supporting long-term engagement through our digital enablement practice. Plus, the increasing digitisation of manufacturing processes brings increased cybersecurity threats, putting sensitive data at risk.
Addressing these challenges requires a combination of strategic planning, investment in technology and workforce development. SCC focus on supporting customers with adapting to changing market conditions and we commit to help with continuous improvement and innovation. We have capability to provide added value through the solutions we deliver, with focus on reducing environmental footprint and refurbishing equipment. Our solutions can help manufacturers to meet regulatory requirements, adapt with modernisation and focus on their core business objectives.
UK manufacturers are wary of the threat posed by the success of their competitors in the US, India and China. Geographical proximity, cultural similarities and wider trade considerations, continue to dictate trade relations for many UK manufacturers. According to MakeUK, increasing productivity by 5% would raise the sector's contribution to UK GDP to 15%, giving the UK a competitive edge, adding over £142bn to the UK economy.
The practice of building supply chain resilience is driving new behaviours as manufacturing firms seek new ways of managing their supply processes and boosting sustainability. Prioritising management and recovery of materials and components provides manufacturers with the capability to maintain a degree of control over resources, ensuring materials remain in use and within their control for as long as possible.
Despite the awareness of the value technology investment brings, under 15% of manufacturers are making technology central to their firm's strategies, MakeUK reports. To ensure they realise return on investment, manufacturers must understand how technology can improve their business. A good place to start would be to migrate/re-platform operations to the cloud or check the efficiencies of existing platforms.
