InsideOutsourcing issue #7

Challenges follow us into the new year but there’s good reason to be optimistic

2022 was an exceptionally challenging year for many manufacturers involved in controls & automation. The positive is that order books amongst most UK OEMs are strong and demand as we enter a new year, is maintaining.

This is clearly demonstrating enough confidence within end user markets for investment in new machinery and automation. The story of the year and a topic picked up on several occasions during our end of year #PPREWIND22 campaign was supply chain disruption and parts availability, with lead times increasing massively and even then, dates being presented that are still unreliable.

We witnessed lead times on standard parts, that would normally be 1-2 weeks turn into many months. That’s the scale of the problem and all driven by the scarcity of micro-electronics. When you see the automotive industry ‘on its knees’ in relation to output and lead times on new cars, despite their global presence and buying power, it makes you realise just how difficult this global situation has been.

Although there are no immediate signs of improvement in the months ahead, significant new investment – particularly in the USA, for electronic chip manufacture, will commence during 2024 and beyond, which will increase global capacity. It is indeed interesting (and refreshing) that the US Government is determined to manage risk and reliance associated with Far Eastern supplies.

What a great shame that the UK Government remain so short sighted. Investment in chip manufacture locally would also attract the associated prime OEMs into that territory, creating further wealth, prosperity, and opportunity for growth.

So, entering 2023 and assuming we avoid a global economic meltdown and full-blown recession, along with dependence on what happens in Ukraine and the impact it has globally, UK manufacturing, with its incredible resilience and innovative nature is still well positioned for growth. And particularly now in export markets with a weak sterling further helping that cause.

The automation space has guaranteed growth. Automation is needed to reduce reliance on diminishing labour availability. Automation is needed to reduce energy consumption. Automation is needed to reduce overall manufacturing costs and to drive increased productivity. No doubt that the challenges following us all into 2023 will hinder full economic growth and recovery, but medium to longer term – we have every reason to be optimistic.

We’re entering the beginnings of a golden era of engineering in the UK, if we embrace the opportunities.

Tony Hague, CEO, PP Control & Automation

Reflecting on a disruptive but significant year in manufacturing

We closed out the year with an engaging campaign reflecting on 10 key stories published over the course of 2022, depicted as chart-topping records. The REWIND22 campaign includes contributions from thought leaders, departments, and communications partners which made for a compilation of key ‘tracks’ and songs of disruption, resilience, and opportunity.

? Catch up on the campaign

Below is our top 10 chart with audio reflections from the people behind the stories.

1. Supply: The Universal Problem

Tony Hague, CEO of PP Control and Automation, says the chronic supply delays, caused before Covid but exacerbated by the pandemic, is an overdue and golden opportunity for companies that manufacture goods. But will we act?

2. How a Volatile Landscape Has Redefined the Buyer Role

According to Joanna Gould, her team of buyers are using their experience to navigate an extreme landscape of supply chain volatility whilst also having to master the art of customer service and the skills required for customer-facing roles. Enter the ‘buyer come customer service’ blend.

3. Launching the Resource Centre

Machinery builders and companies looking to bring new technologies to market are benefitting from a new resource centre launched in August 2022. PP C&A has pooled all its expertise and knowledge into an easy-to-use online hub.

4. Once in a Generation Reshoring Boom

De-risking supply chains, mitigating long lead times and ensuring security of supply are driving a major reshoring trend back to the UK according to Tony Hague.

5. Scott’s Top 5 Continuous Improvement Moments

Scott Ward reflects on close to 10 years of involvement in the continuous improvement department and selects five of his personal favourite moments.

6. Gen-Zeal: The Eager Desire of a New Generation of Engineers

Three budding engineers at different stages of their careers with PP C&A recently took part in a questionnaire designed to draw out their personal points of view on experiences to date, their achievements, and the future of the business.

7. Broken Supply Lines Drive Manufacturing Back Home

After two years of global supply-chain disruption, and with dark clouds on the horizon, manufacturers around Birmingham say they are inundated with orders, helped by new and old domestic clients bringing some production back home.

8. Bridging the Valley of Death

The launch of PP+ is aiming to help domestic businesses cross the well publicised valley of death by providing access to an ecosystem of key ‘Growth Module Partners’.

9. A sharing in Growth Story

Continuous improvement is a storybook that never closes. And so, this Sharing in Growth story, is really just a chapter. But a significant one. And one that includes an ‘Inspire’ award.

10. Making Outsourcing Easy

By working together, across the organisation and throughout departments, with key technical partners, and of course directly with the customer, PP C&A use the power of collaboration to deliver measurable success and live by its uppermost pledge of ‘making outsourcing easy’.

Thank you for reading

We hope you enjoyed the first InsideOutsourcing of 2023. Your comments and engagements are welcomed, and we look forward to sharing more from inside PP C&A, the UK's leading and award-winning strategic outsourcing provider to machine builders and OEMs.

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