South West manufacturing performance at 10-year low, and why robots aren't - yet - the answer

The latest South West Manufacturing Barometer report reveals that just 18 per cent of SME manufacturing businesses have adopted robots, with another 13 per cent saying they plan to start using them.

But almost 70 per cent have no plans, or are unsure about, introducing robots.

Published by the South West Manufacturing Advisory Service, SWMAS, the study also highlights a sector experiencing its toughest quarter in a decade.

More SME manufacturers report a reduction in sales, profits and staff numbers than recorded in any period across the last ten years. And some 45 per cent of businesses experienced a fall in profits in the last quarter.

Simon Howes, MD of SWMAS, authors of the report, said: “With both Brexit and a potential change in government causing ongoing uncertainty the Manufacturing Barometer shows manufacturers are finding their ability to recruit, invest and increase sales is ever more restricted. So finding technological solutions is increasingly important.

“And there is an opportunity to do more with robots: you can see this in the government’s Industrial Strategy, the continuing drive to increase productivity, and the need to find new ways to operate with fewer staff.

“Although the UK ranks as the 8^th largest industrial nation, we are 22^nd in the global league of robot adoption – we must ask why that is, and this is what we set out to explore in our study of the South West’s SME manufacturing sector.

“Three important things came out of our research. The first is the simple truth that so few SME manufacturers in the region are using robots in their businesses. Secondly, a belief that low volume, variable or difficult to handle products make robots unviable. Thirdly, more than one third of SME manufacturers who do not use robots are unsure if their competitors do, raising questions around awareness of what is actually possible for them.”

Simon Howes says manufacturers in the South West must look again at robots and at how their competitors are using them.

“We also ask robot suppliers to look specifically at SME manufacturers’ concerns and provide better awareness of the latest solutions,” he said.

“If we fail to develop and communicate cost-effective solutions for the large group who make low volume or difficult to handle products, the adoption of robots will continue to stall.

“It also seems to be true, as the Department for Business, Energy and Industrial Strategy highlights, that a lack of awareness around robots is harming the productivity of businesses, particularly for SMEs.

“For the potential of robots to be realised, the South West’s SME manufacturers need much better awareness, tailored advice and flexible support to help them plan and integrate robots into their businesses - this is a huge challenge, but one we can overcome.”

The full South West SME Manufacturing Barometer report can be found at www.swmas.co.uk