Today's blog is about the contrast in manufacturing
supply chains, manufacturing locations and how this affects automation strategy.
A number of years ago, I was working within a global food
organisation. During this time the strategy across the developing world was to buy and manufacturer local brands. When the local economy developed sufficient strength, the local population would then aspire to purchase and have the buying power for the company’s
international branded products. The company would then use the existing
manufacturing asset(s) to produce the international brand.
This was a double edged
sword. The economic conditions which enabled the local population to buy
the international brand also meant that labour rates were pushed higher, and thus required
the replacement of manual labour with automation.
In contrast I was reading an article in the national press
earlier this week about a similar issue. Partially, because of the upward pressure on the labour rate
the reaction of manufacturing companies is to move the manufacture of capital
(e.g. furniture), non short shelf life food (pot noodles), cars (Aston Martin)
and retail (toys) goods back to the UK.
The other factors at play being
shipping cost (and the associated tying up of cash) and shipping time – to be
able to asses and rectify quality defects.
Written by Phil Gillard, General Manager, SolutionsPT |
So it sounds like good news for manufacturing? Yes, but where is the good news
story about automation? We are all aware that in addition UK workers are taking strides to improve quality and productivity
This new dawn of
manufacturing here in the UK is backed up by automation and manufacturing IT - so why are we not shouting about this from the rooftops?
No comments:
Post a Comment