ARCHIVE FOR THE ‘brexit’ CATEGORY

The future of the UK drone industry, one of Britain’s prime opportunities for growth, and many other UK-based manufacturing exporters, will be severely threatened once the UK’s eligibility for the EU’s CE accreditation regime expires at the end of December 2022.

Robert Garbett, one of the world’s leading advisors on drone technology and Founder and Chief Executive of Drone Major Group Limited, today warned the UK Government of the need to speed up post-Brexit accreditation and establish a clear pathway to United Kingdom Certified Assessed (UKCA) accreditation ahead of the fast-impending deadline. 

VITAL UK INDUSTRIES THAT INCREASINGLY RELY ON DRONE TECHNOLOGY ARE FACING UNCERTAINTY

If an alternative UKCA accreditation scheme is not in place in the next 12 months, UK UAS (Unmanned Air Systems) businesses – including drone manufacturers and operators – risk being unable to trade within the global marketplace in the absence of the necessary new international regulatory accreditation. 

This pressing issue, if not addressed with greater speed, will have serious consequences for many UK manufacturers looking to sell their products internationally. The issue is set to be tabled for discussion in the UK Parliament later this month.

Robert Garbett commented: “We must not sleepwalk into this urgent issue. It is essential that the UK takes a clear, committed and consistent approach to the development of CA accreditation, something which would have a significant impact on the aviation and drone industries, and will also impact many others. The UK currently has no system in place for the certification of aviation materials and also drones, and with all CE Certification no longer valid, firms will have to return to EU certification providers to re-certify, at a great cost both financially, and to the detriment of UK PLC. We now face a potential cliff edge threat which requires urgent attention.” 

This has huge implications for many vital UK industries that increasingly rely on drone technology, including energy, agriculture, construction and rail.

Prior to Brexit, the UK utilised the (European Conformity) CE mark which ensured full compliance of a product with all applicable European health, safety, performance and environmental requirements. Post-Brexit however, the UKCA (UK Conformity Assessed) mark is now required for goods and products being placed on the market in Great Britain and currently covers most goods which previously required the CE marking, known as ‘new approach’ goods.

From the end of this month (December 2021), the UK will have just 12 months remaining of the ‘transitional period’ to introduce and develop the requisite accreditations to ensure global compliancy of UK products before the upcoming deadline for full compliance on 1 January 2023.  

Commenting on the timeline for the accreditation, Robert Garbett continued: “It is essential that a clear roadmap is established for the UK’s accreditation. The process of implementation in itself is already highly complex and, as it stands, it will be very difficult for a certification scheme to be established with United Kingdom Accreditation Service (UKAS) in time for the December 2022 deadline, unless the current pace is speeded up.

“The UK’s departure from CE certification post-Brexit, has created an opportunity for the UK to develop an acceptable means of compliance in line with emerging international standards. It has the potential to allow the UK to look outwardly, facilitating a faster pace of innovation in a move away from the more prescriptive approach taken by the EU’s CE accreditation.

“We must get this right to leverage one of the UK’s biggest opportunities for growth in a technology where if we move fast, we could lead the world.” 

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Further Reading:

• Read more about Parts, Pricing and Logistics @ www.fieldservicenews.com/parts-pricing-and-logistics
• Read more about the drone industry on Field Service News @ www.fieldservicenews.com/drones
• Read more about the impact of Brexit in the service industry @ www.fieldservicenews.com/brexit
• Learn more about Drone Major Group @ dronemajor.net
• Follow Drone Major Group on LinkedIn @ www.linkedin.com/drone-accelerator/

Brexit fatigue’ may be sweeping across the European continent but for those of us involved in critical supply chains, now is not the time to put our heads in the sand. The network nature of international supply chains means we may all be reliant on the least-prepared organisation, as ByBox’s Simon Fahie, explains. 


There’s no escaping the fact that field service can be a lonely industry. Ask the engineer battling torrential rain to repair a wind turbine. Or the manager greeted with blank stares at dinner parties when asked to explain his job. With mobile engineering teams working in often remote locations, and a high number of lone workers, it can feel like there are limited opportunities for collaboration within field service.

But with Brexit around the corner, now is the time when field service operators must work together – not just to avoid problems, but also to get ahead. While the UK political climate remains highly uncertain, ByBox has shared practical tips with customers to help prepare for the ‘worst case scenario’ - No Deal.

A ‘Hard Brexit’ could mean that businesses which currently move parts freely within the EU, including the UK, will find themselves becoming importers and exporters between the UK and the EU.

An obvious statement perhaps, but several of the companies we have been working with will find it a shock to implement not only the existing rules, but also additional new procedures to manage No Deal.

And herein lies the real rub - under new customs rules, if one company fails to comply, it could cause delays to the stock of all businesses within the same consignment.  The smartest businesses recognise that ‘one issue affects all’ within Field Service; and that by and large they do not compete supply chain against supply chain.

 

"Advanced businesses view Brexit as an opportunity to take stock and think about how they can add value..."

By preparing for new import and export rules now they’re protecting not only their own businesses, but the resilience of the whole field service sector. Advanced businesses also view Brexit as an opportunity to take stock and think about how they can add value after Brexit and get ahead in a new trading environment.

The most common themes are:

Use of technology
An increasing number of  firms are looking to digitise processes around distribution, engineer productivity and inventory. With ever-more stringent SLAs and cost pressures, there just isn’t room for inefficiencies or delays in responding to disruptions

Increased forward stocking
In some industries where the potential consequences of delays are not acceptable, EG medical technology, we’ve seen an increase in firms using micro Forward Stock Locations (FSLs) – placing critical items in App-Lockers at the service sites where they’re needed, to protect first-time fix rates

Third party specialists
Many companies are turning to third parties to manage complexities around cross border transport and distribution. For example, our strategic partners such as Bespoke Distribution Aviation (BDA) – already have established transport channels, a customs clearance approach and brokers.

Two years on, it’s easy to experience ‘Brexit fatigue’ – but the burden can be significantly reduced if field service companies realise they’re not alone, and help each other through it.

Simon Fahie is Managing Director at ByBox.

With Article 50 triggered and Brexit negotiations underway Spencer Earp, Senior Vice President EMEA & APAC for ServiceMax, a GE company asks just how important can field services be for UK PLC...

The last place you would expect to find a microcosm of Britain’s proposed industrial strategy is in a cereal bowl. As iconic breakfast brand Weetabix announced plans to invest £30m to expand its UK manufacturing facilities, its Chinese owner Bright Foods was considering a sale and there are plenty of suitors.

Weetabix is apparently bucking a breakfast trend, growing its market share and creating jobs but it is far from Brexit-proof. Price hikes it says are expected.

Just a week earlier UK Prime Minister Theresa May outlined her proposals for a new industrial strategy for Britain and Weetabix is exhibiting the sort of dynamism May hopes to re-create.

But while it may serve as a valuable example in developing the right conditions for growth, it may prove an exception to the rule.

While UK GDP figures put in a strong finish to a turbulent 2016, the outlook remains uncertain.

This year will be dominated by trading negotiations and a fluctuating pound and we are expected to feel the start of a pricing pinch. The UK, says Business and Energy Secretary Greg Clark at the launch of the Government’s green paper, “must close the gap between the most productive companies, industries, places and people and the rest; and ensure we are one of the most competitive places in the world to start and grow a business.”

 

Easier said than done. The focus will no doubt be on streamlining manufacturing processes, minimising costs, encouraging inward investment and using post-Brexit freedoms to use government subsidies to promote growth, such as targeted tax incentives and increased research and development grants. All good stuff but what can businesses do themselves?

How can the government proposals deliver ideas and strategies that touch all aspects of the supply chain, for example? How can a new business plan for Britain remove cost from the company and yet improve its attractiveness and productivity?

The analogies with the field service industry are startling. Field service has often suffered from under investment or derision. Businesses have regarded service as a cost to the business but this is changing.

New technology is turning everything on its head, with service increasingly seen as a critical business function. Business strategies are evolving along service lines, recognising that affordable sensors, automation and increased mobility are having a profound impact on how products are sold and of course supported. Brand reputations are rising or falling on the back of it and above all service led companies are increasingly profitable and efficient.

A recent report from Vanson Bourne revealed that 86% of execs surveyed said they expect field service to become a primary revenue driver in the next two years. Results from the Technology Services Industry Association (TSIA) Field Service benchmarking study also found that businesses “saw an improvement in renewal rates of up to seven points when field service engineers took the initiative to drive adoption versus engaging only in break/fix maintenance activities.”

In her speech to the World Economic Forum at Davos in January, Theresa May talked about facing up to change, redrawing the international image and making Britain truly internationalist.

The industrial strategy is part of this new thinking, but turning words into tangible actions will demand a cultural shift within organisations if the manufacturing sector is to be competitive and profitable.

 

It demands an automated, end-to-end field service management plan, one that empowers field service professionals in the business and recognises the value service can have to an industrial strategy.

Interestingly, GE drives more than 70 percent of its profits from the service business. It’s a strategy that works. Mobility and smart device technology are at the heart of this and something that will only accelerate rapidly with the advent of 5G networks.

In its Emerging Trends in Mobility report, the TSIA claimed that the rapid development of video conferencing, mobile knowledge management applications and wearables is rapidly creating an even greater positive impact on the service industry and business profitability.

It’s like a perfect storm and one that could and should carry UK manufacturing forward. It is this understanding of how the latest cloud-based technologies can underpin an industrial strategy that can help to drive differentiation and efficiency.

Not all manufacturers can do a Weetabix, but they can embrace ‘servitisation’. The industrialists and thinkers of Whitehall would do well to take note.

 

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Service Executives across the world should see Brexit as an opportunity for increasing their influence on companies growth plans writes Nick Frank, Managing Partner, Si2 Partners...

We believe Service Executives across the world should see Brexit as an opportunity for increasing their influence on companies growth plans.

Most economic commentators believe that the medium term growth prospects for the UK and even the global economy have been severely dented, but these strengthening headwinds should also act as a wake up call for industry.

The more visionary businesses have redoubled their efforts to innovate and many are introducing Service Thinking into their growth plans. While digitization of products enables new ways of thinking and captured the imagination of many, there is nothing like the threat of hardship to accelerate change!

This is why the recent launch a UK National Strategy for Engineering Services by Chris White MP, Co-Chair of the All-Party Parliamentary Manufacturing group is both timely and needed.

Although a UK initiative, it is is very relevant to all globally developed economies.

Chris White recognizes that: “The developing trend of ‘servitised manufacturing’ is a specific example of UK innovation that has allowed early adopters to develop successful differentiated offerings in the global market.”

He goes on to describe a sense of urgency, which is very relevant to today’s situation!

“The opportunity is one that we must seize. We need to better integrate capability development and innovation between manufacturing, engineering and technology, between engineering and business model innovation, and across sectors”

 

Policy makers recognise that within the context of a countries industrial strategy, many of the world’s leading companies have developed new service orientated business models in order to prosper.

Dave Benbow, Global Head of Engineering at Rolls-Royce PLC explains: “We have consistently delivered shareholder value through being market leaders in engineering services: ensuring that our engines are designed, manufactured and supported in-service to deliver power for our customer whenever required throughout their lifetime.”

But sustaining this success requires a back to back business philosophy with their supply base.

The fact of the matter is that mind-set change is not happening fast enough and needs to be accelerated!

To address this, a central theme to the National Strategy is the creation of an Industry Council to inspire UK companies to innovate new ways of delivering value through services.

The goal is to add 1.9% or £31.6bn to the UK economy. To put this in context this is more value added than the UK’s globally recognised legal industry. Industry leading companies will challenge their supply chain to reduce costs by 20% and increase asset availability by 20%: A 20/20 vision which they know has to be delivered to remain competitive.

As Managing Director at the global industrial services group Babcock recognises: “In numerous engineering and technology domains, we have found that by taking responsibility for ‘outputs’ – asset performance – we have been able to give our customers more value than the simple delivery of discrete products or programmes.”

This requires a massive shift in thinking, almost a re-invention of how we look at manufacturing and engineering. The new council will work in partnership with academia to develop skills and capability, from both a technology and business perspective.

It will interact with government to not only influence cross-industry thinking, but to flex it’s economic muscle to drive mind-set change in how the massive infrastructure projects such as the HS2 rail link will be engineered and delivered. It was after all Margret Thatcher in the 80’s who drove the Ministry of Defence to start the procurement of Outcome based availability contracts that has led to the UK’s commercial and academic leadership in this particular industry niche.

The strength of this approach is that the core team which includes Si2 Partners, is industry led.

Over 106 organisations were consulted in its development. The strategy is supported by some of the UK’s leading universities as well as key government departments such as the Ministry of Defence and the Department of Business, Innovation and Skills.

 

Indeed as when driving fundamental transformation, the importance of Industry, Academia and Government working together to effect sustainable change cannot be underestimated.

The message for service organisations all round the world is that your role in value creation is being recognised.

Indeed the major global industrial players are beginning to push the service orientated, outcome based business models deeper into their supply chains. To accelerate change, executives can seize the opportunity of economic uncertainty to show how services are one of the strategies that organisation can deploy to sustain long-term business growth.

You can download the UK National Strategy for Engineering services and the supporting market data that underpins the strategy at http://si2partners.com/uk-national-strategy-engineeringservices-now-available-download/.

If you would like to be involved in the next phase of this initiative, then you can sign up for more information from Cranfield’s Through-life Engineering Services Centre who have been a key player in facilitating this National approach.

 

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