july 4-5, discussion on manufacturing and africa, unido, vienna

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” Petermarsh307@gmail.com

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

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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)

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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