Take Five: predictions and opportunities for UK Manufacturing in 2014 from Tim Linnell, Product PortfolioManager at Eurotherm
22/01/2014 Eurotherm by Schneider Electric
The single driver for growth in 2014 and beyond is the global demand for better living standards. According to Tim Linnell, Product Portfolio Manager at Invensys Eurotherm, a global supplier of measurement and instrumentation for process control applications, it is this growing influence of the developing world that is focusing the priorities for companies in the West.Eurotherm operates globally across Life Science, Heat Treatment, Plastics and Glass Manufacturing and is well placed to predict the global growth opportunities that lie ahead. Tim explains: "Global desire for a better life and higher living standards is driving growth and this is a big driver to change. Eurotherm believes this will sustain strong double digit growth opportunities over time especially in India and the developing regions."
According to Eurotherm, the five key areas fuelling economic activity and growth will be:
Consumer demand for higher standards and regulation
Increased demand for quality healthcare
Better food standards
Greater efficiency to offset increased competition
The development and exploitation of new materials
"Regulation is growing in importance and is becoming a benefit more than a cost because it leads to higher quality products with lower risks of recall. Eurotherm has seen growing evidence of this, particularly in India where a recent set of seminars on the subject received overwhelming interest, and we believe regulatory compliance will continue to be central to improving products in 2014.
"There has been an increase in strategic investment in healthcare in developing countries. The need to drive down the cost of quality healthcare and increase vaccination rates in the developing countries is a big driver and one that will continue to grow as demand increases. Eurotherm is proud to be very active in the automation of vaccine manufacturing.
"The demand for high quality, safe food will also continue to grow but the market is very fragmented with lots of small suppliers on limited budgets. The food industry is, however, one of the most adaptable industry sectors, with the ability to create new products quickly and we will surely see rapid innovation and improvements. We also see the potential for the pharmaceutical industry to mirror some of the agility of the food sector, demonstrating ways of safely improving automation and yields to drive down costs.
"Certainly the overarching theme for 2014 will be increased efficiency. As margins continue to decrease successful businesses need to improve productivity and know exactly where their costs are and work on reducing them. Advances in throughput and the provision of measurements for continuous process improvements will be key to achieving this objective. This has always been a core strength for Eurotherm and one we see growing throughout next year and beyond. Although acquisition cost of equipment is always a major factor, there is a growing realisation that total cost of ownership is the determining factor in purchase decisions. Costs of poor quality and inefficiency can make the difference between profit and loss as margins decrease.
"Finally, we believe the year ahead will see widespread developments of applications and fabrication methods for new materials such as Graphene, a 2-dimensional carbon lattice which appears to have enormous potential in many materials and semiconductor applications. Despite being largely derived from UK research, it seems that much of the development on innovative materials like Graphene is now being done overseas, particularly in the US and South Korea. We predict more companies in the UK like Eurotherm will be looking at ways to contribute to a resurgence of UK influence."
Tim concludes: "Local suppliers in developing economies are certainly growing in capability and expertise but the West has a deep reserve of expertise and is the centre of many of the regulatory initiatives. This presents excellent opportunities for UK companies, and reduces some of the advantages of cheap local suppliers, who are themselves on a steep learning curve.
"Even if currency risks and infrastructure issues create potential for short term reverses, prospects for this next year will certainly be driven by increased prosperity in the BRIC economies with ordinary people wanting to be better off in all aspects of their lives. This is a huge driver and opportunity for UK businesses and one Eurotherm believes will be the catalyst for double digit growth."
For more information, please visit: www.eurotherm.co.uk
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