In April 2022 I produced a piece for The Manufacturer ‘An automation update from the MTC (themanufacturer.com)’ which discussed the barriers to robot adoption in the UK and the current challenges facing UK manufacturing, predicting these were likely to drive an increase in the implementation of robot automation.
The barriers included our access to flexible and relatively low-cost labour, the requirement for short-term return on investment against capital expenditure, and a “make do and mend” culture which, by favouring the maintenance of old, has hindered the purchase of new machinery. The main challenges to manufacturing were our poor productivity, the increasing fragility of extended supply chains and a labour shortage resulting from the combined effects of Brexit and the pandemic. I anticipated the need to address these challenges would serve as the catalyst to overcoming the barriers and increase the adoption of robot automation in the UK.
“There is a fear of robots taking jobs, but the opposite is the case. Tasks may be automated, and staff redeployed to often more rewarding roles. But the resulting improvements normally lead to increased orders, growth and more and better paid employment.”
There does appear to be growing interest in the use of robot automation. But it has not yet accelerated to the level required if we are to catch up with our major competitors. Make UK recently reported that UK manufacturing had fallen out of the top 10 for the first time. This was not due to a reduction in the size of UK manufacturing but growth in other countries, namely Mexico, Russia and Taiwan. However, there should be an ambition to grow manufacturing in the UK; restoration of our historical position in the top 10 should provide an incentive for growth.
I also believe manufacturing has a key role to play in the future prosperity of our country. The service sector may be larger, but it is by adding value to products and then selling these that we can generate the prosperity to fund the public services that we wish to maintain. The government appears to recognise the importance of manufacturing and is talking of the need for growth.
Manufacturing has frequently cited the need for stability and a defined direction of travel as key requirements. The government has committed to delivering an industrial strategy and providing the answer to these requirements. If we want to achieve growth in manufacturing, this strategy will have to address the need for investment in modern manufacturing technologies including robot automation.
There is an increasing need to significantly accelerate adoption of robot automation. The rest of the world continues to invest, and we are falling further behind. The 2023 robot density data (number of robots per 10,000 workers) from the International Federation of Robotics puts us at 25th behind all our major competitors. It is not only our relative position that raises concerns; the challenges to manufacturing are also increasing.
Productivity is a key issue, and improvements can be readily achieved in manufacturing. Robot automation increases productivity of both existing machines and labour. Typically, a machine tool loaded and unloaded manually will be operating at about 70% utilisation. If the tending operation is automated, this can be increased to 90%.
Robots provide consistency both for operation and the time taken. This ensures consistent output in terms of both quality and production rate reducing waste. This reliability, coupled with productivity, gives a company the competitive edge to win new business and grow.
The anticipated labour shortage in UK manufacturing – caused by a number of issues, including both the pandemic and Brexit – has come to pass. According to Make UK, there are currently 61,000 vacancies leading to a lost opportunity of £6bn. Global instability is also driving a growing interest in reshoring manufacturing to increase supply chain resilience. Both factors should ignite greater investment in robot automation.
The skills issue is often cited as a barrier to adoption of robot automation. This can work both ways. Yes, businesses need to develop the skills to implement and operate robot systems. However, we also have shortages of trade skills, such as welders. Robot automation can be implemented to undertake repetitive welding tasks, leaving skilled welders to process more complicated parts. We should be using our labour on tasks where their skills and attributes add value. Any task which can be automated should be a strong candidate for investment.
Despite the challenges within manufacturing and the subsequent opportunities, the anticipated acceleration of robot adoption has not taken place. The most common misconceptions, particularly within smaller businesses, relate to the cost and complexity of robot automation. Most business leaders are aware, and recognise the value, of the widespread use of robotics in the automotive sector. But they do not feel it is appropriate for their companies. Robots have significantly reduced in cost over the last ten years, and they are also much easier to implement and operate, making them very applicable to smaller businesses.
There is also a fear of robots taking jobs, but the opposite is the case. Tasks may be automated, and staff redeployed to often more rewarding roles. But the resulting improvements normally lead to increased orders, growth and more and better paid employment.
There are many examples of UK SMEs, producing all sorts of products from wheelbarrows to pancakes, who are benefiting from robot automation. However, the majority have yet to take their first step. We see this first step as the major hurdle. It is a combination of lack of knowledge and a fear of the potential to invest unwisely. These issues are addressable and with the appropriate steps, risk can be minimised. By preparing correctly a successful automation project can be delivered.
Firstly, it is important to identify the appropriate application. This is not necessarily the major challenge in the factory which may be difficult to automate. There is a learning curve associated with any new technology, and it is therefore important to select a reasonable application to go on that learning curve. A comprehensive business case needs to be developed to justify the budget to buy the correct solution. This is not just about labour savings but other factors that should be included.
Most importantly a requirements specification must be developed to convey the necessary information to potential vendors. This also helps to provide a consistent basis for comparison of the vendors proposals. Selection of the most appropriate suppliers is critical and, given the large choice, can be a challenge.
My key advice, particularly for businesses implementing robot automation for the first time, is to seek independent advice. Organisations, such as the Manufacturing Technology Centre (MTC), can guide companies through this journey to help them ensure their investment delivers success.
To help manufacturing SMEs move forwards, we have two initiatives underway which are aimed at addressing key challenges faced by new users. Firstly, we are undertaking a foresighting exercise, with input from SME employers and automation providers, to identify the skills required to procure, implement and operate robot automation. With the support of educators, we will identify both the gaps in the training provision and the way to fill these gaps.
Secondly, we have created a West Midlands Robotics Cluster which is intended to provide the opportunity for local businesses to network and share knowledge regarding robot automation. We see this initiative being replicated in other regions once we have developed and proven the operating model.
Both initiatives are intended to address the awareness and skills barriers holding back SMEs. With support during the procurement process, we believe we can help many more businesses implement robot solutions, increase their capacity and improve productivity. Since SMEs make up 99% of UK manufacturing businesses, they are key in driving growth to reclaim that top 10 position and ensure our future prosperity.
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