Members from Made in the Midland and Made in Yorkshire came together to discuss 'smart factories'. Companies discussed the question of how SMEs implement an industry 4 plan, and how to communicate existing industry 4 activities to the supply chain and customers.
Members included; Elliot Underwood, Oliver Pogmore, Craig De-Lara, QTS; David Alexander, Lander Automotive; Monica Pratt, Partners Group; Nigel Maris, Assemtron; Jo Young, Additive-X; Adrian Painter, Tri-Tech; Donna Challinor Cooper Parry and Omar Haider, Siddall & Hilton Products
There was a lively debate around the servitization of turning products into a service; one example was how compressed air companies are giving the initial kit away for free and charging for the air.
In the additive printing sector, there were also ideas shared around what 3D printing as a service could look like; with the upfront cost removed, there could be many different ways of utilising the service, for example the creation of an inventory library of key parts that could be printed at later dates. This inventory library could also be categorised as an asset to protect and systemise IP and back up to critical or legacy parts.
One of the key findings of the discussion was the need to communicate with customers so that they become familiar with the systems.
Whilst the people in the room were familiar with industry 4, there was a gap in the supply chain. Some of the members who have successfully implemented industry 4 have improved efficiency for their suppliers and solved problems for them, such as transparent pricing and delivery times. This is closing the knowledge gap in the supply chain. Coupled with the increased growth in servitization, those companies who are slowest to adopt may be the hardest hit in the recessive period.
With industry 4 adopters holding all the cards in terms of increased efficiency, better handling of inventory, delivery times and financial forecasts. Companies strong in industry 4 are also locking in their customers at pace by making the ordering process simpler and more convenient.
We have moved from a period whereby people are no longer asking what the benefits to industry 4 are, to what is best practice in terms of implementing and commercialising the investment. Those at the front of this innovation era will be well placed for growth.
Finally, the communication aspect of industry 4 will open up opportunities to attract people into the sector and reassure suppliers and customers in the supply chains.
There is some reassurance for those worried about the jobs lost from industry 4. Most of the jobs saved are repetitive ones that no one wants to do. We can also see from population demographic data that there will be fewer young people in the jobs market in the future. This is correlated with Gen Z being the smallest modern generation. China, for example, with only 10.6m births in 2021, is setting the bar for a future population decline. With a more significant percentage of older people, it is a race against time for innovation and improved productivity to match the tightness we will see in the labour market.
Get involved in the Made in Group discussion groups and share your insights with other manufacturers. Made in the Midlands and Made in Yorkshire are industry associations hosted on the Made Platform, a private digital network for manufacturers and their industry influencers to share their experiences. Login to your dashboard via www.madeinthemidlands.com or www.madeinyorkshire.com depending on which region you are a member of. Goto the events section and select the evnts you wish to attend, you can then choose a session. Each month we discuss themes around industry 4, sustainability, people and international trade.