Why supply chain development is critical to automation adoption

OVER RECENT months, I have spoken to numerous manufacturers and suppliers at events including the MAKE UK National Conference and the PPMA Conference. In contrast to what’s being said in the general media, I felt an air of optimism for 2025 and beyond. My roles as Head of Sales at FANUC UK and BARA Chair allow me access to data around both UK and global automation adoption rates and, whilst we are undoubtedly behind the global average, I believe the UK is poised for a surge in automation adoption – but only if the right environment can be created by the current government.

Stability for investment

Discussions around the UK Industrial Strategy at the MAKE UK Conference confirmed that what British manufacturers need is more stability in order to start investing in capital equipment. Following the Spring Statement and changes to policy from 1 April, they are now beginning to do so.

At another recent event, held in the northeast with ten automation companies, attendees were clear that better collaboration is also needed between supply chains and end customer manufacturers. More projects would be won by UK automation suppliers if they knew who could support them within the domestic supply chain in regard to equipment or services outside of their own capability. This is one of the key aspects that Automate UK and BARA will be focusing on at Automation UK on 7-8 May at the CBS Arena in Coventry.

Manufacturer engagement in developing their supply chain will be crucial to ensuring the right application and process skills are being developed by automation suppliers; whether in automotive, food, aerospace, or warehousing and logistics. Each sector requires different skills and knowledge, and has a different risk appetite, both technically and financially.

Better understanding

The elements of a project where an automation supplier may benefit from support from the end manufacturer include specific process knowledge, regulatory guidance (particularly in medical/food/ATEX applications), as well as working together to find solutions to financial challenges (eg cash flow). It’s not uncommon for procurement/purchasing departments to take over final negotiations, which can make it difficult for suppliers to plan for longer term engagement and future projects with a business. After all, the most suitable long-term supplier may not necessarily be the cheapest, or offer the quickest delivery time. However, a supplier developed alongside your business needs will better understand you and their importance within your supplier ecosystem.

Automate UK and BARA welcome discussions with automation suppliers and end-user manufacturers on supply chain development. To share your opinions, contact [email protected]

www.automate-uk.com/our-associations/bara/