Manufacturers press ahead with further growth in orders
New orders continued to expand for British manufacturers in the three months to January, but firms expect their export orders to tail-off in the coming quarter, according to the latest CBI Quarterly Industrial Trends Survey. The survey of 467 firms saw a rise in the volume of total new orders, led by strong demand at home and very modest growth in export orders. Manufacturing output rose at a similar pace to the previous quarter and it was notable that costs and prices fell, with unit costs edging down for the first time in over twelve years. Average domestic price deflation is at its fastest rate since 2010. Meanwhile, numbers employed in the manufacturing sector continued to grow at a solid pace. Over the next three months, firms anticipate new export orders to be flat, acting as a drag on total orders growth, while domestic orders are set to continue rising, if at a somewhat slower pace compared to previous quarters. Output is expected to continue growing modestly. However, access to skilled labour and capacity constraints are key factors cited as likely to limit output in the next quarter, and significantly more respondents expect price competition to limit export orders. Firms do, however, remain more optimistic about the general business situation than three months ago. Positive plant investment plans Looking to the year ahead, manufacturers’ plans for investment in plant and machinery have strengthened, while plans for spending on product and process innovation and training/retraining remain robust. Rain Newton-Smith, CBI director of economics, said: “British manufacturers are still heading along the right path: new orders are up, bolstered by domestic demand and more people are getting work in factories across the UK. Exports have grown modestly, but there is a feeling that we will not see a repeat in the next quarter, especially with the Eurozone still treading water and battling deflation. “Falling oil prices should be positive for the UK economy overall, benefitting households and lowering costs for firms, although North Sea oil producers are being hit. With overall cost pressures contained as a result, it’s no surprise to see average domestic prices in the manufacturing sector falling at the fastest rate for five years.” Key findings Key findings for three months to January 2015 include: • 36 per cent of businesses reported an increase in total new orders, and 17 per cent a decrease, giving a balance of +20 per cent. • The rounded balance for new domestic orders (+15 per cent) was well above the long-run average (-5 per cent) with 30 per cent of respondents reporting orders up and 16 per cent down. • Export orders saw a return to growth (+4 per cent) following a fall in the previous quarter (-7 per cent). • 27 per cent of manufacturers said employment numbers were up, and 15 per cent said they were down, giving a balance of +12 per cent. • 25 per cent reported a rise in output volumes, and 15 per cent a decrease, giving a balance of +10 per cent. Key findings for the next quarter include: • 25 per cent of manufacturers expect total new orders to increase, and 14 per cent expect them to fall, giving a rounded balance of +11 per cent, the lowest since October 2012 (+8 per cent). • A rounded balance of +12 per cent expect new domestic orders to rise (23 per cent expect an increase, and 12 per cent a fall), but following the slight increase this quarter, export orders are predicted to be flat (+1 per cent; 17 per cent expect a rise, and 16 per cent a fall). • 25 per cent of firms anticipate a rise in output volumes, and 12 per cent a fall, giving a balance of +13 per cent. • 23 per cent expect employment to increase, and 11 per cent expect it to decrease, giving a balance of +13 per cent. • Expectations for growth in domestic and export prices remain negative (-6 per cent and -2 per cent respectively). Unit costs are expected to also fall slightly further (-5 per cent).
Boge recruits new business development appointment
Compressed air specialist Boge Compressors has appointed Ian Nicolson to the position of business development manager for Northern England. The appointment is in response to increased sales and service business for Boge in the region. In his new role, Nicolson is responsible for working alongside new and existing customers in the North of England to identify opportunities where they can reduce their energy costs and improve the efficiency of their compressed air systems. He will also provide customers with ‘tailor-made’ service packages designed to reduce overall compressed air net spending by businesses. “We are really pleased that Ian is joining us at this exciting juncture in Boge’s development,” said Mark Whitmore, general manager at Boge Compressors. “Ian has the skills and attitude to help Boge continue to grow in this competitive market, while further strengthening the excellent customer services that we are renowned for.” Prior to joining Boge in the role of business development manager, Nicolson studied at the University of Aberystwyth, where he graduated with an honours degree in Mathematics. “I am delighted to become part of the Boge team and look forward to developing strong relationships with our customers in Northern England,” he said. “This region has historically played a pivotal role the UK’s industrial offering and naturally in Boge’s development in the country. I will be looking to build on our success in this region as we continue to enhance our product and service offerings.”CBI unveils package to keep the recovery motoring
Against a backdrop of solid UK growth but increasing global risks, the CBI is calling on the Chancellor to focus on infrastructure investment, encouraging innovation and removing barriers to enterprise, in the Autumn Statement.
Manufacturing Forum success for Brammer and Buck & Hickman
Brammer and Buck & Hickman recently hosted the eighth annual Manufacturing Forum at Silverstone. The event, an opportunity for Brammer and Buck & Hickman customers and partners to gather and discuss the current topics and issues in the manufacturing industry, was attended by more than 200 delegates.
MDS Rotherham stresses ‘systems engineering’ approach to energy efficiency
The Motor Driven Systems Conference visited The Advanced Manufacturing Research Centre in Rotherham on Wednesday 29 October in the first of two vendor-hosted events aimed at helping industry professionals generate major financial savings from motor driven apparatus.
Brevini UK investment increases capacity
Brevini Power Transmission has completed the first stage of its development plan which will eventually see its two UK sites undergo expansion to increase its warehousing, distribution and gearbox servicing capacity. The initial investment was spent at the Scunthorpe location to optimise the gearbox service centre and expand the offices to create space for product training for customers and graduate employees.
Manufacturing Forum success for Brammer and Buck & Hickman
Brammer and Buck & Hickman recently hosted the eighth annual Manufacturing Forum at Silverstone. The event, an opportunity for Brammer and Buck & Hickman customers and partners to gather and discuss the current topics and issues in the manufacturing industry, was attended by more than 200 delegates. Among them were leaders from major manufacturers including Siemens, The Royal Mint and GKN Aerospace. Brammer and Buck & Hickman hosted several speakers, an awards ceremony, a networking lunch and panel discussion. There was also an opportunity for guests to try the virtual Formula One time trials or drive round the international circuit at Silverstone in Ferraris and Aston Martins. Brammer and Buck & Hickman showcased their Mobile Centres of Excellence along with the Specialist Tool Demonstration vehicles for visitors to explore. Guest speakers at the forum included behavioural expert Jez Rose, whose seminar explored whether the success of a business is based on the people within it. Other speakers included managing director of Weatherford, Daryl Stroud, who explored the supply chain in manufacturing, Douglas Dawson, COO at Caparo discussing the challenges of attracting young people into manufacturing and Warren Limbert from innovative engineering company, Lambert, on its successful apprenticeship and mentoring programmes.First London ParkerStore opens for business
Parker Hannifin, in partnership with distributor Hopespare Ltd., has opened the first London ParkerStore, creating the first self-serve supermarket for hydraulics and pneumatics products in the capital. Products in the new store, run by Hopespare at Woodall Road in Enfield, are organised into categories and part numbers, which means customers can browse at leisure for items such as air brake parts, couplers and filters. There is an in-store ‘while-you-wait’ hose assembly service, so people can take a seat, enjoy a drink and watch their product being made. All store staff have received the British Fluid Power Association’s skills training programme and are qualified to assemble a hose correctly and safely. Store manager Richard Durrant commented: “We’ve moved away from the traditional trade counter format to a much more relaxed shopping experience, complete with customer seating and refreshments. People can pop in, browse around and handle product without any commitment to purchase. They decide what they want for themselves and just tell us if they want to buy something or need help solving technical problems.” He continued: “Our team has loads of experience in hydraulics and pneumatics and we’re used to handling all sorts of queries – from very technical industry problems, to diagnosing what’s needed from a picture on a customer’s mobile. And as an official Parker store, we also sell genuine parts and fittings that are guaranteed to match. So it’s much easier than ever to buy hydraulic, pneumatic, electrical and motion control products in north London.” The new format store is already proving a hit with customers. Ben Bradford of Glendining Highways said: “We buy all sorts of hydraulic parts and air tools and with old trade counters, you can’t see anything. This shop is much better. Instead of relying on a book, you have loads of products on view and advice to help you get the right parts, first time round.” Rob Mead of BIZ Karts added: “It’s really well organised. Everything’s clean and modern, and the products are nicely displayed. They’ve made hoses and fittings for us and the staff were great to deal with, we wouldn’t go anywhere else now.” The store opening hours are 8.00am to 5.00pm Monday to Friday and 9.00am to 12.00noon on Saturday. Customers can also call the technical helpline on 0208 804 9001.Ace golfers raise over £4000 for Cancer Research
UK distributors, suppliers and sales teams had a real ‘blast’ at a recent charity golf day hosted by Gardner Denver UK at the Warwickshire golf and country club on 1 October.
The figures that make a mockery of manufacturing’s ‘decline'
Despite repeated reports of its demise, manufacturing is responsible for more than half the West Midlands economy and nearly a third of the UK output, according to research for Birmingham City University.
NFPC welcomes fluid power guests from Finland
Earlier this month the National Fluid power Centre (NFPC) – part of the commercial arm of North Nottinghamshire College – welcomed some 13 visitors from various vocational colleges and training centres in Finland. The group also included a representative from the Finnish Hydraulics and Pneumatics Association and the FLUID Finland Magazine.
Motorsport Industry Association calls for greater dialogue in manufacturing
British industry should engage with the UK’s world-beating motorsport supply chain to help build a robust and sustainable platform for growth. This is the view of Chris Aylett, CEO of the Motorsport Industry Association (MIA), who is calling for greater dialogue between the UK’s diverse manufacturing sectors in the wake of a report issued recently by the CBI.
Bosch Rexroth partners with OMC
Bosch Rexroth has entered into a strategic partnership with OMC Technologies, the designer of aluminum fabricated products and furniture in Ireland, to continue its work in providing innovative ergonomic solutions to customers.
Parker opens new Midlands trade counter in Nottinghamshire
Motion and control technologies solutions provider, Parker Hannifin, has opened a new Midlands trade counter to meet the demands of Nottinghamshire’s manufacturing, engineering and construction markets.
Holroyd secures cool £2.75 million order in China
Precision Technologies Group company, Holroyd Precision Ltd., has received orders for two of its ‘next generation’ Zenith 400 helical profile grinding machines from one of China’s leading specialists in ice systems and industrial cooling technologies. Scheduled for delivery to China’s Fujian Province later this year, the machines are together valued at £2.75 million. They will be used to precision grind some 100 compressor rotors, each measuring up to 250mm in diameter, per day. “We are delighted to have received such significant machine orders from such a well-respected refrigeration specialist,” said Holroyd Precision’s sales manager, Steven Benn. “Whilst the customer in question is well aware of the immense benefits that the Holroyd Zenith 400 models will bring to their manufacturing capabilities, the simple fact that both machines are required in such a short time frame speaks volumes for the considerable confidence they have in our ability to not only build industry-leading machine tools, but also meet the tightest of deadlines.” Developed to precision grind components weighing up to 700kg and measuring up to 420mm in diameter and 2.2 metres in length, the Zenith 400 helical profile grinder combines high stock removal rates and aggressive semi-finishing, with production rates and accuracies tailored to particularly demanding manufacturing strategies.-
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