Former Head of Manufacturing, Technology Strategy Board

2. Dr Will Barton
Managing Director, WillB Consulting Limited
Chairman, Oxford Biotrans Limited
Chairman Amalyst Limited
Non-Executive Director NiTech Solutions Limited

3. Future Challenges, Foresight and the Role of
Government-Funded Centres

4. Agenda
• The importance of manufacturing
• Some lessons from the past
• Where are we today?
• Some pointers for the future
• How should / does government help?
• Wrap-up

5. Manufacturing is Important to the UK
• Represents a significant part of GDP (£139bn in 2012)
• Companies more likely to do R&D (72% of business R&D)
• More likely to innovate
• Help UK to have highest total factor productivity in Europe
• Major contributor to exports (53%)
• Provides highly skilled jobs (employs 2.5 m)
• Provides economic resilience

6. Agenda
• The importance of manufacturing
• Some lessons from the past
• Where are we today?
• Some pointers for the future
• How should / does government help?
• Wrap-up

7. Take Cost Out!
• Change working practices
• Improve processes
– internal focus
• conversion efficiencies / waste reduction
• energy use reduction
• automation / control systems
– supply chain focus
• MRP, S&OP, ERP, . . .
• business process re-engineering
• working capital reduction
• delivery in full to customer first request improvement

8. Improve Quality (and cost comes with it!)
• Total Quality Management
– Crosby, Deming, Juran, . . .
• Statistical Process Control
• Lean
• Six Sigma
• Meet higher Safety, Health & Environmental Standards
BUT THEN WE HIT THE LAW OF DEMINISHING RETURNS

9. So how did we compete?
• Consolidation
– close down surplus capacity and /or consolidate operations
– sacrifice low margin business
– focus on mega-plants in low labour cost countries
– mergers & acquisitions
• Innovation
– new / improved products
– new / improved processes
– new business models

10. Agenda
• The importance of manufacturing
• Some lessons from the past
• Where are we today?
• Some pointers for the future
• How should / does government help?
• Wrap-up

11. UK Manufacturing has slipped down the table!
[Manufacturing GVA by Country
United Nations Statistics Division, Value
Added by Country, US$bn, 2010]

12. But there are some bright spots
• Aerospace industry remains No 2 in the world
– sustained investment in their leadership position
• 2 of the top 6 pharma companies are UK-based
– Over £1bn of new plant investments in progress at present
• Auto industry in the UK is resurgent
– foreign ownership, but choosing to build here
• Chemical industry is still a major exporter
– organising to attract new investments (shale gas a major opportunity)

13. SME-base is recognised as key
• We have some great start-up stories, e.g.
– Polyphotonics – working with CPI
– Hybrid Manufacturing Technologies Ltd – working with MTC
– Applied Graphene Materials – commercial plant built by CPI
– OC Robotics – working with NAMRC

14. Agenda
• The importance of manufacturing
• Some lessons from the past
• Where are we today?
• Some pointers for the future
• How should / does government help?
• Wrap-up

15. Innovate UK - HVM Strategy
• New HVM Landscape developed to address the questions:
– how is HVM going to develop globally over the next 15 – 20 years?
– what challenges and opportunities does this development create?
– which of these could the UK be best placed to address?
• 22 “National Competencies” identified:
– invest in these and we are well placed

16. BIS / GOS Conducted the Foresight Study ( 2050)
Key Characteristics of Future Manufacturing
– Exposed to new market opportunities
• emergence of BRIC + ..., changing personal wealth, incr. foreign ownership
– Faster, more responsive and closer to customers
• mass customisation, distributed production, digitised mfr value chains
– More sustainable
• eco-product demand, circular economy, greater use of regulation
– Increasingly dependent on high skilled workers

17. National Competencies as pointers:
• Design and manufacture for sustainability and through life
• Design and manufacture for light-weight vehicles, structure and devices
• Biotech, biological and synthetic biology processing
• Design and manufacture for small scale and miniaturisation
• Systems modelling and integrated design/simulation
• Automation, mechanisation and human/machine interface
• Smart, hybrid and multiple materials
• Intelligent systems and embedded electronics
• Flexible, adaptive, ‘plug and play' manufacturing
• Additive manufacturing
• New business models (e.g. distributed production, “power by the hour”, . . . )

18. Agenda
• The importance of manufacturing
• Some lessons from the past
• Where are we today?
• Some pointers for the future
• How should / does government help?
• Wrap-up

19. Role of Government
• Create an environment where business can succeed
– social
– fiscal / monetary / trade
– innovation
• Sustain the excellence of UK university research
– funding of our Research Councils is key for this
• Ensure a supply of well prepared school leavers
Mirrored by “Report to the President on Capturing Domestic Competitive Advantage in Advanced Manufacturing”, July 2012

20. Government-funded Centres
• BBSRC Institutes
– basic research to thriving incubator units (e.g. Babraham)
• EPSRC Centres for Innovative Manufacturing
– maximise impact of innovative research with clear business need
• EPSRC Doctoral Training Centres
– train engineers / scientists with the skills, knowledge and confidence
to tackle today's evolving issues
• Catapult Centres
– helping business transform ideas into new products and services

21. EPSRC Centres for Innovative Manufacturing
• Ultra Precision
• Through-life Engineering Services
• Photonics
• Liquid Metal Engineering
• Regenerative Medicine
• Medical Devices
• Laser-based Production Processes
• Large-area Electronics
• Intelligent Automation
• Industrial Sustainability
• Food
• Emergent Macromolecular Therapies
• Continuous Manufacturing and
Crystallisation
• Composites
• Advanced Metrology
• Additive Manufacturing

22. High Value Manufacturing Catapult
NCC
MTC
AMRC
NAMRC
WMG
CPI
AFRC
• £350m invested to date
• £350m+ over next 5 yrs
• 430+ industry clients
• >1000 staff
In place to drive the
growth of the
manufacturing sector by
helping companies of all
sizes incubate and
develop new
technologies through to
commercial reality.

23. What is the HVM Catapult
Business-focused consortium of centres that makes world-leading technical capability
available to businesses to address their manufacturing challenges
• Access to world-leading manufacturing technology & expertise
• Capability to undertake collaborative R&D projects
• Capability to undertake contract research
• Access to the knowledge base for world-class science
• A professional delivery ethos with a strong business focus
• A critical mass of activity
• Skills development at all levels

24. What does HVM Catapult seek to deliver?
• Accelerating technology commercialisation
– Combined skills and equipment helping new and existing businesses give
commercial life to great ideas.
• Cross sector capability
– Differing industries working together to a common goal
– New technologies benefiting many industries
• Economic drive
– Helping to rebalance the UK economy
The result will be thriving UK manufacturing industries built on
world-leading technology and invention

25. Agenda
• The importance of manufacturing
• Some lessons from the past
• Where are we today?
• Some pointers for the future
• How should / does government help?
• Wrap-up

26. We can grow Manufacturing again in the UK!
• Be world class at the basics
• Build on the innovation environment we have created
– continuing dialogue with business re future needs
– sustained investment from government
– attracting MNCs to the UK
– Growing our SME base
• Learn to work collaboratively
– business / university / Catapult
– business / business

27. Questions?