Is Manufacturing the Future

Jan 29, 2012 | Publisher: edocr | Category: Business & Economics |  | Collection: Migrated Docs | Views: 0 | Likes: 1

Manufacturing the Future Breakfast Briefing New Economy Thursday 24th November 2011 Page 2 2011 © Siemens PLC Manufacturing the future? Advanced Manufacturing in Greater Manchester Dr Alexander Roy, Head of Research, New Economy Page 3 2011 © Siemens PLC Why Advanced Manufacturing? —Manufacturing is a traditionally important sector for Greater Manchester, and retains a significant presence despite long-term structural change —Urgent need to create private sector jobs —Coalition Government’s desire to shift towards high- value industry and boost regions outside South of England (Growth Review etc.) —We therefore need to ensure that the successful elements of our manufacturing industry are well- understood and well-supported Page 4 2011 © Siemens PLC Approach —What is Advanced Manufacturing? “Advanced manufacturing utilises more capital intensive techniques, increasingly focusing upon research, design and after sales services (‘manu-services’).” —Use of desk research and qualitative research to analyse GM’s Advanced Manufacturing sector and understand issues faced by local manufacturers: —Data analysis (including mapping) —Business database research —In-depth face-to-face interviews Page 5 2011 © Siemens PLC TOTAL EMPLOYMENT: 1,161,800 TOTAL EMPLOYMENT: 1,161,800 Advanced manufacturing only 3% of all employment (& hi-tech only 0.64%) 2000 EMPLOYMENT: 191,800 Page 6 2011 © Siemens PLC TOTAL EMPLOYMENT: 1,161,800 TOTAL EMPLOYMENT: 1,161,800 Manufacturing employment in Greater Manchester CORE MANUFACTURING ENGINEERING 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 M A N U F A C T U R I N G E M P L O Y M E N T ( 0 0 0 Page 7 2011 © Siemens PLC All Manufacturing Page 8 2011 © Siemens PLC Advanced Manufacturing Page 9 2011 © Siemens PLC High-Tech Manufacturing Page 10 2011 © Siemens PLC Conclusions — GM has a comparatively strong base of Advanced Manufacturing —Over 38,000 employees across GM (only Birmingham have more) —Nearly 200 specialist high-technology manufacturers (only London has more) — Advanced manufacturing firms in GM have been more profitable and resilient than the business base as a whole —Profits growth and optimism about future growth — Innovation and investment crucial — However, they are forecast to continue to decline in employment terms, even though output is expected to remain constant or grow i.e. increased productivity Page 11 2011 © Siemens PLC Conclusions —Manufacturing companies are smaller than they once were, in employment terms, but they are also more productive and international in scope —We are unlikely to see a return to the mass manufacturing of old, so: —Retain the manufacturing we do have; supporting these companies to stay in GM and grow —Attract new manufacturers, where there is a logic to them being based in the UK (skills, markets, supply chain, infrastructure etc.) Page 12 2011 © Siemens PLC What next? — Streamlined client-relationship management of GM’s advanced manufacturers —Targeted support in terms of reinvestment and exporting, especially focused on key growth markets e.g. China — Recruitment —Need to improve the image of the sector — Increase take-up of apprenticeships — Premises and infrastructure —Planning system needs to better reflect requirements of modern manufacturers — Subsidies and grants —Need to ensure GM’s advanced manufacturers operate on a more ‘level playing field’, especially vs. European peers Page 13 2011 © Siemens PLC Examples of what we are currently doing — New nationally operated Manufacturing Advisory Service (MAS) ƒ Strategic and technical support for SMEs, developing Advanced Manufacturing capabilities and creating high value jobs; ƒ enabling business improvement with manufacturers operating in global supply chains; and ƒ linking SMEs with the Apprenticeship programme, delivering a minimum of 1,250 engineering and manufacturing apprenticeships annually. — The Business Growth Hub ƒ The Hub is private sector led and will provide expert support and advice to firms with high-growth potential. ƒ The target market for the Business Hub’s services and network includes more than 12,000 businesses across the North West with growth of between 10 and 20% per annum. Page 14 2011 © Siemens PLC Any Questions? Page 15 2011 © Siemens PLC Appendix – Advanced Manufacturing definition Problematic to define as a discreet sector, but we use best available definition from OECD LEVEL OF TECHNOLOGY SECTOR Pharmaceutica ls Aircraft & spacecraft Radio, television & communication equipment HIGH-TECHNOLOGY Office, accounting & computing machinery Electrical machinery & apparatus Medical, precision & optical instruments Motor vehicles, trailers & semi-trailers Railroad & transport equipment Chemical & chemical products A D V A N C E D M A N U F A C T U R I N G MEDIUM TECHNOLOGY Machinery & equipment Page 16 2011 © Siemens PLC Manufacturing the Future A look ahead into manufacturing - locally and nationally Andrew Peters Divisional Director, Siemens Industry Sector UK 24th November 2011 Manchester’s Commission for the New Economy www.neweconomymanchester.com 2011 © Siemens PLC Quick Facts ƒ 13,000 Employees / More than 100 Locations ƒ £5bn New Orders (2010) ƒ 5000 people in manufacturing in 13 key factories: Traffic controls, train cab radios, industrial gas turbines, superconducting magnets for MRI scanners and high efficiency drives ƒ EFQM Best Business Award (Industry Automation). ƒ EEF North West Future Manufacturing Awards “Environmental Efficiency in Manufacturing” (Drives, Congleton factory) ƒ Best Factory Awards “Factory of the Year” , Traffic Solutions, Poole factory, Drives, Congleton factory. Our Vision: “Investing in Britain’s Industrial Future” Page 18 2011 © Siemens PLC Greater Manchester Manufacturing Profile Page 19 2011 © Siemens PLC Advanced Manufacturing Report - October 2011 Page 20 2011 © Siemens PLC Advanced Manufacturing – Employment & GVA Page 21 2011 © Siemens PLC 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 1 9 7 1 1 9 7 2 1 9 7 3 1 9 7 4 1 9 7 5 1 9 7 6 1 9 7 7 1 9 7 8 1 9 7 9 1 9 8 0 1 9 8 1 1 9 8 2 1 9 8 3 1 9 8 4 1 9 8 5 1 9 8 6 1 9 8 7 1 9 8 8 1 9 8 9 1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 Year % o f G V A 1971-2011: Manufacturing as % of GDP UK Manufacturing generates approximately £140 billion of the UK’s economy — circa 11% of gross value added Manufacturing employs over three million people and produces more than 60% of all UK exports UK is the sixth-largest manufacturing nation by output Page 22 2011 © Siemens PLC Megatrends and Manufacturing Challenges Page 23 2011 © Siemens PLC Megatrends will be the driving force for the next decades worldwide Megatrends = Change D e m o g r a p h i c c h a n g e Urbanisation Climate Change G l o b a l i s a t i o n Page 24 2011 © Siemens PLC Page 25 2011 © Siemens PLC How can industry act as a partner for the cities? Perception studies Megacity Challenges ƒ Comprehensive analysis based on interviews with over 500 city managers in 25 selected megacities ƒ Urban infrastructure trends and challenges as well as global best practices New: The Sustainable Cities Challenge in Canada ICT for City Management Comparative studies Green City Index ƒ Index compares cities across 8 dimensions of sustainability: CO2, Energy, Buildings, Transport, Waste & Land Use, Water, Air, Governance ƒ Started in Europe, rollout in Africa, Latin America and Asia Implementation studies Sustainable urban infrastructure series ƒ “How to become a sustainable city" with focus on measures for resource efficiency and CO2 abatement ƒ Examples: London, Munich, Yekaterinburg, Dublin, Trondheim, ... Page 26 2011 © Siemens PLC Siemens – Solutions for tomorrow’s challenges Page 27 2011 © Siemens PLC Key challenges facing UK Manufacturing and proposed solutions Collaborative R&D Strategic Infrastructure Skills Investment Culture & Productivity Lean Six Sigma Page 28 2011 © Siemens PLC New markets: E-Cars / Smart Grid Smart Grids and E-Vehicles and Charging Point Networks to go alongside the Urban Centres in the future Page 29 2011 © Siemens PLC Key challenges facing UK Manufacturing and proposed solutions Collaborative R&D Strategic Infrastructure Skills Investment Culture & Productivity Lean Six Sigma Page 30 2011 © Siemens PLC Manufacturing investment in 2012 lower than 2007 levels *NACE - Statistical classification of economic activities in the European Community Source: Oxford Economics Page 31 2011 © Siemens PLC Investment for Sustainable Manufacturing Investment for sustainable manufacturing Page 32 2011 © Siemens PLC Key challenges facing UK Manufacturing and proposed solutions Collaborative R&D Strategic Infrastructure Skills Investment Culture & Productivity Lean Six Sigma Page 33 2011 © Siemens PLC Higher Education School Education I n t e r m e d i a t e •Real skills shortage at technician level. Manufacturing will need at least additional 587,000 new workers over next 10 years mainly technicians •Apprentice and technician route seen as second- class alternative to University •40% of Engineering workforce aged > 45 •300,000 UK Graduates / year – only 10,000 engineering (China produces 600,000 engineering graduates) •30% Engineering Graduates take careers outside of engineering •Graduates often don’t have the right skills •Poor perception of engineering and manufacturing •Too few student taking STEM subjects •Low skills and aspirations •Number of 16 -24 year olds will drop by 8% in next 10 years The UK skills squeeze and challenge Page 34 2011 © Siemens PLC National engagement Key Programmes Higher Education School Education I n t e r m e d i a t e G o v e r n m e n t & M i n i s t e r i a l A d v i s o r y G r o u p s M a n u f a c t u r i n g I n s i g h t / F u t u r e s S e c t o r S k i l l s C o u n c i l s - S e m t a A s s o c i a t i o n s – C B I / E E F / R o y a l a c a d e m y o f E n g . P r o f e s s i o n a l b o d i e s – I E T / I M e c h E E d u c a t i o n a l – S T E M N E T / E n g i n e e r i n g U K E3 & Power Academy Lincoln University Diplomas/Apprenticeships PM@Siemens Academy Commercial Academy Wind Power Maintenance Schools & Ambassador pr. LEAs and local agencies Work placements Diversity eg WISE Individual Universities Programmes; Big Bang etc. Siemens approach to address ‘the squeeze’ Page 35 2011 © Siemens PLC Key challenges facing UK Manufacturing and proposed solutions Collaborative R&D Strategic Infrastructure Skills Investment Culture & Productivity Lean Six Sigma Page 36 2011 © Siemens PLC Offshore Wind Energy 2011 © Siemens PLC Siemens & Manchester – A tradition of commitment • Recently received £3.5m funding to be used as part of wider planned investment of around £30m by Siemens. • Plan to expand our green technology portfolio. • Our Renewable Energy Engineering (REE) Centre which currently under construction should provide up to 340 new jobs. • An additional building and redevelopment of the existing Sir Williams Siemens House premises has also received council backing. Headcount Development for NW Europe Projects Siemens Solutions deployed in Manchester Page 38 2011 © Siemens PLC Visions for the future Page 39 2011 © Siemens PLC Thanks for listening! Andrew Peters Divisional Director, Siemens Industry Sector UK 24th November 2011 Manchester t ’’s Commission for the New Economy i i f t www.neweconomymanchester.com . t .

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