Articles
While larger companies have typically been able to resize, remove overheads and concentrate on developing their manufacturing technology, smaller companies have attempted to pivot in order to maintain cash flow.
Many companies have used the downtime to develop technologies that will give them a competitive advantage as they move forward. Major themes are automation, Industry 4.0 and decarbonisation.
“For aerospace, this has largely been an opportunity to reset and take another look at emerging technologies,” said Andrew Francis, chief technologist at GKN Aerospace. “This includes the optimisation of our existing processes. It’s also an opportunity to look at totally new technologies such as electrification and hydrogen-powered aircraft. At GKN we’ve continued setting up the Global Technology Centre in Filton without any disruption.”
The level of disruption caused by the pandemic has been highly inconsistent across sectors. In general, medical devices, pharmaceuticals, chemicals and defence have seen only small negative impact, or in some cases a positive impact. Meanwhile, industries such as civil aerospace have been hit especially hard.
Economic shock
There is still significant uncertainty about when the effects of the pandemic may ease, or whether there could still be worse to come. Many manufacturers spent last year delivering orders received in 2019, meaning there was relatively little immediate impact. However, with very few orders coming in during 2020, the biggest impacts may yet to be felt in this new year. The economic shock has also brought into focus the spectre of other impacts that had not previously been considered with such urgency. Climate change is the most obvious example. Businesses are, therefore, now investing heavily in measures that can make manufacturing more robust and able to withstand such disruptions.
While many companies were already planning to increase automation before the virus, these initiatives are now looking even more desirable. Increased use of automation can improve the safeguarding of workers against infection. At the same time, it increases the possibility of keeping production running during a lockdown. Reducing the worker density on the shopfloor is the key.
Remote working has obviously had a huge impact across industry, not only in manufacturing.
“Before the lockdown, UK manufacturing had a relatively low level of awareness of Industry 4.0,” said Peter Marchbank, MD of Rotary Precision Instruments. “This is in contrast to countries such as Germany where there was already a really strong awareness of why this technology is vital. Now I’m hearing the same narrative from everyone, that we need to embrace Industry 4.0, and that it will be key to moving forward.”
Switching production
Some companies have taken the more radical decision to repurpose and pivot – rapidly switching production over to new products that are in demand. The Ventilator Challenge UK is one example of this but many companies have also switched production to personal protective equipment and associated products, or equipment related to remote working. Other efforts to pivot have been less directly associated with the pandemic. Often the approach has simply been to talk to customers to identify where they need help as a route to finding new business.
As industry aims to cut overheads, increase automation, digitalise and diversify, Covid is providing a major stimulus for change. Those that make it through this test will come back leaner and more efficient than before.
Want the best engineering stories delivered straight to your inbox? The Professional Engineering newsletter gives you vital updates on the most cutting-edge engineering and exciting new job opportunities. To sign up, click here.
Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.