Yesterday, the Next Manufacturing Revolution* (NMR) launched its landmark report and programme to help UK manufacturers improve their non-labour resource productivity. The report identifies the significant untapped opportunities for UK manufacturing in non-labour resource efficiency and outlines a programme of action to address the barriers to uptake.
At the launch in the Palace of Westminster, the Rt Hon Gregory Barker MP and Professor Steve Evans spoke of the timeliness of this initiative while Steve Adams from Coca Cola Enterprises and Inder Poonaji from Nestle gave examples of their companies’ pioneering resource efficiency initiatives and the tangible benefits that have resulted.
The report, co-authored by Lavery Pennell, the University of Cambridge’s Institute for Manufacturing and 2degrees, summarises 12 months of research examining resource efficiency performance compared to international good practice for each sub-sector. It found that while many UK manufacturers have achieved 10 to 15% efficiency gains over the last decade, leading companies have achieved over 50% improvements in the same timeframe.
All manufacturing companies were found to have room for improvement:
- Significant variation in non-labour resource performance was observed between companies within each manufacturing sub-sector.
- Four types of improvement were identified which are rarely all fully utilised: incremental improvement, process and system improvement, structural change and core redesign.
- Even leading companies are performing inconsistently across the resource efficiency topics examined of circular resource use, transport efficiency, energy efficiency, packaging optimisation, supply chain collaboration and resource efficient product & business model innovation.
The opportunity was conservatively calculated to be worth £10 billion p.a. in additional profits for UK manufacturers, to create 300,000 new jobs and to reduce CO2e emissions by 24% for the UK manufacturing sector (4.5% of UK’s total annual emissions).
Based on this research, and supported by case studies from the private sector, NMR has developed a programme to help manufacturing companies realise these benefits, comprising three platforms. The first is the NMR Community, which provides in-depth information, research and interactive information exchange forums, openly accessible to all. The second focuses on Barriers Resolution and Rollout, working collaboratively with experts and manufacturers to overcome industry obstacles that currently prevent the improvement of non-labour resource productivity, through a series of workshops. The third platform is Tailored Support which involves one-to-one advice for manufacturers seeking to identify improvement opportunities within their companies from non-labour resource management.
NMR now welcomes the involvement of companies and industry organisations who can participate to the extent that they wish, dependent upon their specific objectives and business planning needs. The programme is accessible, flexible, and designed to deliver results consistent with those seen in case studies of best practice from the private sector.
Implementation of this programme is now underway; collaboration with government, member organisations, other NGOs, and publications will assist to accelerate this programme. Organisations and manufacturers seeking to participate can contact firstname.lastname@example.org.
*The Next Manufacturing Revolution is a not-for-profit collaboration between Lavery Pennell, the University of Cambridge’s Institute for Manufacturing and 2degrees.