UK manufacturers missing out on £10bn in profits a year

The vast majority of UK manufacturing businesses are failing to take advantage of opportunities to significantly improve profits and reduce costs according to new research.

A new study by the Next Manufacturing Revolution (NMR) – a not-for-profit organization founded by 2degrees, Lavery/Pennell and the University of Cambridge’s Institute for Manufacturing – claims that through more efficient use of resources, manufacturers could generate an additional £10bn in profit a year.

And by adopting a series of measures these companies could create more than 300, 000 new jobs while contributing a 4.5% reduction in the UK’s total annual greenhouse gas emission footprint.

Focusing on seven key areas including supply chain collaboration, transport, waste, energy and packaging, the NMR report identifies the opportunities open to companies of all sizes based on detailed analysis of global best practice and lays out a program of action to help them deliver improvements in resource efficiency.

Speaking at the launch event at the House of Commons last night, Greg Barker, Minister of State for Energy and Climate Change said: “What you have created here is incredibly important and a signpost for the future. This report focusing on resource efficiency and the potential for UK manufacturing isn’t just timely, it’s absolutely bang on and goes to the heart of the challenge and the huge opportunity that there is for UK plc”.

Professor Steve Evans from the University of Cambridge’s Institute for Manufacturing said: “We are very excited about the launch of NMR’s report and the beginning of its program to drive forward greater efficiencies, and in turn productivity, profits and jobs, in the manufacturing sector.

“The changes that NMR’s program advocates use proven technologies and have already been implemented by pioneering companies. In many cases actions are straightforward and will deliver quick returns.”

The NMR’s program includes comprehensive assessment of the barriers preventing the take-up of greater resource efficiency measures and how they can be overcome to deliver rapid savings and high levels of return on investment.

17th July 2013  — written by Lucinda Broad –

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