PropList Blog
The future of Industrial
Industrial in the Midlands is a very emotive issue, as the region has always considered itself the backbone of engineering for the country. As a child growing up, my father worked for Morris Commercial and our lives were inextricably tied to the business, from the wage being earned through to the social clubs and even Christmas parties in the factory. The decline when it came was heartbreaking and its no exaggeration that it tore the heart out of the community. This decline and fall was sadly repeated across the country over the next few decades and in many industries.
But the world changes and the country has slowly adpated to it, with innovation, development and design still coming out of the country, and bulk manufacture being undertaken in other locations.
The question is though, does this need to continue? Has the impact of Corvid-19 to the manufacturing sites in China, Malaysia, South Korea, India and Bangladesh and onward impact throughout the supply chain given us pause to reconsider? Will the amazing pictures taken by NASA of China's pollution level pre and post manufacturing shutdown, give us the incentive to look at the environmental impact being caused, not just by the manufacturing but also the movement?
One example from few years ago was a childrens clothing manufacturer who produced stock items in stock colours in India, but also had a manufacturing site in Derby where they produced on-trend items. The thought pattern was simple, stock items are always the same and a long supply chain, with cheap manufacture and long (via shipping) delivery was acceptable. However, they needed to respond to changing markets and the ability to produce, from design to manufacture and into shops, was vital to them for any seasonal weather change or trend. This worked well and the company grew continutally until new owners came in and with the mantra of cheap manufacture to keep costs low. Over a very short space of time, the products stopped being on trend and there was a long and slow demise.
Bringing this example into the current circumstances, we need the manufacturing infrastructure and supply chain in place in order to create urgently needed items from masks and gowns through to ventilators and medicines, through to all the staples of modern life. Without the ability to manufacture locally or re-configure in a national emergency, we are reliant on other manufacturing centres which will have their own problems and country priorities.
The reality is there there will be no massive move away from these sites - environmental damage, workers conditions notwithstanding, as they offer a cheap production facility, which in turn keeps the prices down. However, is there an opportunity to re-look at parts of the supply chain and start to make it more effective? Is it time to bring back some of this manufacturing into the UK, not because of a jingoistic 'buy British' Brexit campaign but because it makes business sense to have better controls of the supply chain?
If nothing else, the next few weeks will show that we cannot isolate from impacts, regardless of where they are and the mantra 'stay local, shop local' could also apply to industry.
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