july 4-5, discussion on manufacturing and africa, unido, vienna
TRANSCRIPT
The New Industrial Revolution: Opportunities for the UK Institution Of Mechanical Engineers Sheffield, Nov 14 2013 Address by Peter Marsh Author, “The New Industrial Revolution” [email protected]
What’s the future for manufacturing?
“There’s a new zeitgeist: I’m seeing a global manufacturing renaissance” :
Jeff Immelt, chief executive, General Electric, April 2012.
Global re-industrialisation
3
The new industrial revolution
•The meaning of manufacturing
•Global trends – where Britain fits in
•The 5th industrial revolution
•Policy implications
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The new industrial revolution
•The meaning of manufacturing
What lies behind manufacturing
• Manufacturing = Materials + Energy + Ideas
• The creative force behind 10bn unique products
• It accounts for 16 per cent of world economy (10pc of UK economy)
• It employs about 300m people or roughly 5 pc of world population.(In the UK, manufacturing employment about 2m, or about pc of population)
• The price effect: manufacturing characterised by deflation (compared to services)
A mix of skills and capabilities
The table of life
Where are the people ?
Bringing order to chaos (countering the 2nd law of thermodynamics)
10,000 years of evolution
Stone age axe : resources needed to make one unit Number of manufacturing workers: 1 Number of sites: 1 Number of materials: 1 Skills honed by learning over decades
Where we are now
The iPhone 5: resources needed to make one unit Number of manufacturing workers: 5,000 Number of sites:50 Number of materials: 50 Skills honed by science and technology advances
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The new industrial revolution
•The meaning of manufacturing
•Global trends – where Britain fits in
Britain's world role 1800 - The start of modern manufacturing
Population (% of world)
0.8%
Manufacturing output (% of world)
4.3%
Manufacturing position (out of approx. 35)
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Isambard Kingdom Brunel, pioneer of the First Industrial Revolution
Britain's world role 1900 - The UK as number one
Population (% of world)
2.0%
Manufacturing output (% of world)
15.0%
Manufacturing position (out of 57)
1
Sir Charles Parsons: inventor of the steam turbine
Population (% of world)
0.8%
Manufacturing output (% of world)
2.1%
Manufacturing position (out of 197)
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Britain's world role 2011 – Specialist player
AES Engineering: high-tech engineer with global reach
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Growth in manufacturing output 2000-2011 China + 250%
Britain -6.4%
Europe +15.8%
World + 15.2%
France +1.4%
Germany +20.5%
Japan +9%
US +22.3% (Constant 2005 dollars, Source: UN)
(
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World manufacturing output 2011 ($bn, current prices) 1. China 2,346 2. US 1,904 3. Japan 1,110 4. Germany 729 5. Brazil 308 6. Italy 313 6. S Korea 313 8. Russia 252 9. France 251 10.India 245 11.UK 232 World 11,300 Source: UN
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World manufacturing output 2011 (percentages) Asia 46% Europe 26% N America 18% S America 5% Africa 2% Rest of world 3% Source: UN
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World manufacturing deflation A typical factory-produced item today typically sells for half the price it sold for in 1970 (relative to overall global inflation)
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The new industrial revolution
•The meaning of manufacturing
•Global trends – where Britain fits in
•The 5th industrial revolution
1. Blended technology
2. Mass personalisation/customisation
3. Focus on specialisation/niches
4. Environmental stewardship
5. Service dimension
6. Global networking
7. Cluster dynamics
8. The new geography – China/India/S America
9. The maverick manufacturer
The New Industrial Revolution (Fifth Industrial Revolution)-Key factors
1. Blended technology
The New Industrial Revolution
Blended technology: A-350 wings at Broughton
Sophie Wilson: UK microchip design
A technology mix: NW England textiles sector (James Dewhurst)
1. Blended technology
2. Mass personalisation/customisation
The New Industrial Revolution
AES Seal : multi-choice products...
..with huge range of applications
Durham Duplex knives: 14,000 potential variants
Manufacturing personalisation: the art of the small
Manufacturing personalisation: 3D printing (Beijing Long Yuan machines)
3D printing – making possible “impossible” parts
1. Blended technology
2. Mass personalisation/customisation
3. Focus on specialisation/niches
The New Industrial Revolution
Manufacturing specialisation : leverage innovation (Touch Bionics)
Sheffield Forgemasters: metal maestros
1. Blended technology
2. Mass personalisation/customisation
3. Focus on specialisation/niches
4. Environmental stewardship
The New Industrial Revolution
Environmental stewardship: grow your own wool
Environmental stewardship: new, low-pollution (and cheap) route to titanium (Metalysis)
1. Blended technology
2. Mass personalisation/customisation
3. Focus on specialisation/niches
4. Environmental stewardship
5. Service dimension
The New Industrial Revolution
Service dimension at Cammell Laird:
Different industries, same skills
Knight Warner (Chesterfield): design/automation/service
1. Blended technology
2. Mass personalisation/customisation
3. Focus on specialisation/niches
4. Environmental stewardship
5. Service dimension
6. Global networking
The New Industrial Revolution
What’s the link between.......
......Chinese electronics factories....
....the Westwind air bearing company in Dorset .......
.....and a factory in Cheshire countryside?
Global networking: R.A.Chilton coatings company near Chester
1. Blended technology
2. Mass personalisation/customisation
3. Focus on specialisation/niches
4. Environmental stewardship
5. Service dimension
6. Global networking
7. Cluster dynamics
The New Industrial Revolution
Clusters: NW England textiles sector (Panaz)
Clusters: Sheffield a long-lived example (Mr Controversy: Andrew Cook of William Cook)
1. Blended technology
2. Mass personalisation/customisation
3. Focus on specialisation/niches
4. Environmental stewardship
5. Service dimension
6. Global networking
7. Cluster dynamics
8. The new geography – China/India/S America
The New Industrial Revolution
China dimension: Jaguar Land Rover (Halewood plant)
Jaguar Land Rover: long-term promise paying off
Made in Rochdale: the Chongqing connection
1. Blended technology
2. Mass personalisation/customisation
3. Focus on specialisation/niches
4. Environmental stewardship
5. Service dimension
6. Global networking
7. Cluster dynamics
8. The new geography – China/India/S America
9. The maverick manufacturer
The New Industrial Revolution
Maverick approch: Thomas Heatherwick – designer/engineer
Belfast to Sheffield: Chris Rea at AES
Larger than life innovation: Hugh Facey at Gripple
Gripple’s R&D department
Eleanor Stride (UK) : biotechnologist and medical expert
Madécasse: Tim McCollum (Madagscar chocolate production)
Linking US and China business/technology: Mark Zou of Alltech
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The new industrial revolution
•The meaning of manufacturing
•Global trends – where Britain fits in
•The 5th industrial revolution
•Policy implications
Support specialists : Sir David McMurtry of Renishaw...
...include younger people (Tobi Schneider of Bouncepad)...
...some Sheffield examples (Very PC – customisable computers)
Develop cluster thinking: Warsaw, Indiana, a great example
Cluster thinking : Sheffield should raise its sights
Add skills to old industries
Add service skills: manufacturers as physicians
Opportunities/challenges: finance failings
Possibilities abound