Manufacturers invest for today but not tomorrow

Citation

(1999), "Manufacturers invest for today but not tomorrow", Assembly Automation, Vol. 19 No. 4. https://doi.org/10.1108/aa.1999.03319dab.006

Manufacturers invest for today but not tomorrow

Keywords Manufacturing, Business, Automation

UK manufacturing industry may be investing enough for today, but not for tomorrow according to a new survey published by Bosch Automation Technology.

The survey, based on a sample of 432 UK technology based manufacturing companies, was commissioned by Bosch Automation Technology and provides a breakdown of investments being made in this sector.

Jeff Blackman, national sales manager at Bosch Automation Technology, says:

Manufacturing companies have been facing increasing pressure in the consolidating global marketplace and it is vital that British manufacturers at least sustain if not increase their investment in research, development and training in order to ensure they can compete successfully in the future.

According to the survey, UK manufacturing companies are maintaining their investment levels in new plant and machinery with 33 per cent of respondents investing over »1 million in new manufacturing capability last year. Planned investment was almost the same, with 32 per cent planning to invest the same amount during the next financial year.

However, in reaction to recessionary pressures, 16 per cent had cut back on training and of most concern was the 27 per cent who had cut back on new product development and R&D in the light of the recession in manufacturing.

Blackman continues:

This study has provided us with a fascinating snapshot of manufacturers' current views on the economic pressures currently facing UK industry. While it is encouraging that investment levels in automation technology appear to be relatively stable, cut-backs in training and R&D are of great concern, given the continuing threat from strong overseas competition.

Interestingly, when asked to identify the three top issues currently facing their business the state of the UK economy was identified as the biggest single issue (24 per cent), and the global economy, and overseas threats were also seen as significant, scoring 15 per cent and 12 per cent respectively.

The shortage of skilled staff ranked comparatively low down the list of concerns, with less than 0.5 per cent of businesses citing it as an issue.

Blackman concludes: "The high number of companies that have introduced process efficiencies and product improvement programmes is encouraging".

Respectively, 81 and 84 per cent of respondents claimed to have introduced efficiency or improvement measures over the last year.

For more information please contact: Andy Oswick, Robert Bosch Limited, Meridian South, Meridian Business Park, Braunstone, Leicester LE3 2WY. Tel: +44 (0) 116 281 4488.