Advanced Manufacturing, Materials & Engineeringmatrixni.org/wp-content/uploads/2016/04/AMME-MARCH... · the nature or scale of engineering (e.g. nano-materials, micro -materials)

Advanced Manufacturing, Materials & Engineering

WORKSHOP - March 2016

On 21st March we held a workshop at the Northern Ireland Science Park as part of our Advanced Manufacturing, Materials & Engineering (AMME) Study.

Around 50 leaders from business, academia & government attended to discuss the themes emerging from our research and to try to get consensus on how best to grow the sector in the coming years.

The workshop was chaired by Dr. Rob Hardeman, CTO of Seagate and Deputy Chair of the Matrix Panel.

The following slides give an overview of the work of the Matrix panel, the research carried out to date on the AMME study & the proposed next steps. The final report is due to be published in May 2016.

If you need any further information about the study or our other work, please visit our website at www.matrixni.org

http://www.matrixni.org/

About Matrix MATRIX advises government, industry and academia on

the commercial exploitation of R&D and science and technology in Northern Ireland.

We work with industry and academia to identify new high technology market opportunities, IP and technologies for Northern Ireland companies to exploit and academia to benefit from. And we represent the voice of high tech industry and champion the role of science and technology as one the key drivers of economic growth in Northern Ireland.

BRYAN KEATING (CHAIR)

ROB HARDEMAN (VICE-CHAIR)

JIM McLAUGHLIN GAVIN CAMPBELL COLETTE DONAGHY

NORMAN APSLEY (VICE-CHAIR)

TIM BRUNDLE

SCOTT RUTHERFORD ALAN BLAIR BRIAN BAIRD HUGH McKENNA

JAMES McELNAY JOHN HEALY

THE MATRIX PANEL

ROB GRUNDY

The aim of this workshop

For longer term planning on business infrastructure development, government needs informed, independent advice on future directions in advanced manufacturing.

We now have the opportunity not only to present a picture of advanced manufacturing in Northern Ireland today, but also to create a vision of how the sector might grow in the next 5-10 years.

Agenda10:00 OPEN

BACKGROUND SCENE SETTINGRob Hardeman Richard Buckley

10:45 WORKSHOP SESSION 1Stream (i) - SkillsBryan Keating, Matrix Chair + Apprenticeship Forum ChairStream (ii) - Costs Richard BuckleyStream (iii) – Sectoral Development Ben Walsh, High Value Manufacturing, Innovate UK

12:30 LUNCH13:15 SESSION 1 SUMMARY

Richard Buckley13:45 SESSION 2 WORKSHOP + CONCLUSIONS

Rob Hardeman15:00 CLOSING REMARKS

Andrew McCormick, DETI Permanent Secretary

AMME – by definition: Materials types are labelled in variety of ways, often overlapping.

Different types of materials can be defined or qualified in terms of: traditional categories (e.g. ceramics, polymers, alloys) material properties (e.g. optical, electronic, magnetic) application (e.g. materials for low energy technologies) the nature or scale of engineering (e.g. nano-materials, micro-materials) and sector (e.g. aerospace materials)

These categories are not intrinsically distinct. Some advanced materials could correspond to some or all of these labels.

Furthermore, there a variety of labels used to qualify categories of materials. i.e. ‘advanced materials’ ‘high value materials’ ‘modern materials’ ‘future materials’.(Featherston & O’Sullivan, A review of international public sector roadmaps-advanced materials)

AMME – by definition: Advanced Manufacturing is: “a family of activities that a) depend on the use and coordination of information,

automation, computation, software, sensing, and networking, and/or

b) make use of cutting edge materials and emerging capabilities enabled by the physical and biological sciences, for example nanotechnology, chemistry, and biology.

This involves both new ways to manufacture existing products, and especially the manufacture of new products emerging from new advanced technologies.”(President’s Council of Advisors on Science and Technology Report to the President on Ensuring American Leadership in Advanced Manufacturing)

AMME 2016 – What’s in?Included in previous Matrix study and still in

Out but worth a re-look? Out and still out

20 Manufacture of chemicals and chemical products

13 Manufacture of textiles 10 Manufacture of food products

22 Manufacture of rubber and plastic products

14 Manufacture of wearing apparel 11/12

Manufacture of beverages and tobacco products

23 Manufacture of other non-metallic mineral products

15 Manufacture of leather and related products

19 Manufacture of coke and refined petroleum products

25 Manufacture of fabricated metal products, except machinery and equipment

16 Manufacture of wood and of products of wood and cork, except furniture; man. of articles of straw and plaiting materials

24 Manufacture of basic metals

26 Manufacture of computer, electronic and optical products

17 Manufacture of paper and paper products

27 Manufacture of electrical equipment

18 Printing and reproduction of recorded media

28 Manufacture of machinery and equipment n.e.c.

29 Manufacture of motor vehicles, trailers and semi-trailers

30 Manufacture of other transport equipment

32 Other manufacturing

Report objectives Review conclusions & delivery against recommendations

of previous reports Present an updated picture of the AMME sector in

Northern Ireland Review AMME research agenda / R&D infrastructure

across the region Analysis of external trends and prioritised funding areas

within AMME across UK/EU Analysis of emerging global trends Statement on global macroeconomics – current position

and implications for the sector Scene setting and recommendations for the future

Foresight Market opportunity –

what are the disruptive technologies coming down the line?

Global macro-economic trends & what they mean for NI industries

Challenge and change within manufacturing –evidence on the ground?

Policy Review UKTI / GO-Science Foresight Industrie 4.0 – strong digital focus – even stronger if reviewing

now – re-enforced by Innovate UK position, Nov ‘15 Even wider use of case studies Workshops Market opportunities important – but look to areas where

report can make most impact Technologies 2.1 Sustainability New world of metrics

Technology & Innovation Futures report

The research library is now online...

Identifying with UK foresight ‘trends’Manufacturing of the future

Circular Economy

“Servitisation”

Increasing interaction between firms to give access

to indirect capabilities

Customisation

Value through environmental sustainability &

provenance

Business models like “infinite bandwidth/zero

latency” & general purpose technologies

Collaborative consumption

Personalisation of products

“Factory-less goods

producers”

Co-location & “Industrial

Commons”

“The future of manufacturing – a new era of opportunity and challenge for the UK.”

Headline pointsManufacturing sector – OUTLOOK Spring 2016 (UUEPC) Locally, the high profile job losses announced in the

manufacturing sector in 2015 and early 2016 have contrasted with several new investment announcements. This is a reminder of the volatile nature of global investment patterns and looking forward, the UUEPC forecasting model continues to suggest a relatively modest rate of growth.

Sectoral Outlook for Manufacturing The most recent data shows manufacturing employment

growing strongly.

The Northern Ireland landscapeThe outlook remains positive, but growth will be lower reflecting the difficult international trading environment and the recent announcements at JTI, Michelin and Bombardier (with the impact being most significantly felt in 2017 and 2018).

R&D Performance

£209.1m

£44.8m

£199.3m

Advanced Manufacturing BERD

Other Manufacturing BERD

All Other BERD

NORTHERN IRELAND ECONOMIC OUTPUT SPRING 2016 (UUEPC)

Growth in China• Continued growth in China’s real economy despite volatility in

global markets reaction.

Oil Prices• Oil price collapse good for net importers (such as UK & RoI)

but some emerging economies such as Brazil & Russia are dependent on oil exports.

Potential Brexit• Most likely to have a bigger impact on Northern Ireland

compared to the rest of the UK or RoI.

MACRO-ECONOMIC FACTORS IMPACTING UK/NI PERFORMANCE

NORTHERN IRELAND ECONOMIC OUTPUT SPRING 2016 (UUEPC)

20150.5%

20160.6%

20172.0%

20182.5%

20192.5%

20202.5%

0.0%0.5%1.0%1.5%2.0%2.5%3.0%

BANK OF ENGLAND BASE RATES

20150.1%

20160.8%

20171.0%

20181.7%

20191.8%

20202.4%

0.0%

1.0%

2.0%

3.0%

UK CONSUMER PRICES INDEX (CPI)

UK INTEREST RATE FORECAST:

UK INFLATION RATE FORECAST:

Northern Ireland GVA Sectoral Forecasts

2016 2017 2018 2019 2020

PRODUCTION & MANUFACTURING 1.6% 0.9% 1.6% 2.4% 2.6%

CONSTRUCTION 2.4% 2.9% 2.7% 2.2% 2.0%

PUBLIC SECTOR SERVICES 0.1% 0.9% 1.7% 0.9% 1.0%

PRIVATE SECTOR SERVICES 2.4% 1.5% 1.9% 1.8% 1.7%

TOTAL 1.6% 1.3% 1.8% 1.7% 1.7%

NORTHERN IRELAND EMPLOYMENT FORECAST 2015–25 (SELECTED SOURCES)Forecast is for approximately 40,000 new jobs over the next 10 years building on approximately 45,000 net new jobs 2012-2025

AGRICULTURE+200

MANUFACTURING+4,000

CONSTRUCTION+4,400

RETAIL+1,900

TRANSPORTATION+3,300

INFORMATION & COMMUNICATION

+4,400

ACCOMMODATION+3,300

PROFESSIONAL & SCIENTIFIC

+8,500

ADMIN SERVICES+8,100

PUBLIC ADMINISTRATION &

DEFENCE-6,500

EDUCATION-1,500

HEALTH & SOCIAL WORK+3,400

ARTS & ENTERTAINMENT

+4,000

NORTHERN IRELAND ECONOMIC GROWTH TO BE RELATIVELY MODEST AS OVER RELIANCE ON CONSUMER SPENDING IS UNSUSTAINABLE

1.6%

3.3%

6.9%

1.3%

3.7%

5.4%

1.8%

4.0%

2.8%

1.7%

4.2%

3.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

GVA Growth Rate Unemployment Rate House Price Growth

2016 2017 2018 2019

Key Areas of Activity - Consultation Initial consultation phase complete Stakeholder engagement (InvestNI and industry & trade

bodies) Ongoing policy engagement (Innovate UK, GO-Science, UKTI) Business ‘survey’ Regional research (Skills Barometer; KEI; ...)

Next phase - ongoing Involved engagement (Academia) – research infrastructure

mapping Focus groups Capturing research ‘vision’

Data Sets

Firm Data Funding Data HE/FE Data

NISRAFameBel Tel 100Profit 200LSE Man & Eng World R&D Scorecard

Invest NI – GR&D / PoCInnovate UKHMRC – R&D Reliefs/Patent Box

Research PillarsIndustrial

Collaboration

Primary Sources

Survey responsesFirm interviews

We have gathered information from a wide range of sources...

Data Sets We have prioritized businesses/clusters according to high

value measures such as:- R&D Expenditure Collaborative R&D Engagement Export & Sales Number of Employees

Aim of the research

“Culmination of these data sets along with consultation feedback will offer us a strong insight to sector, both in terms of overall trends and individual company performance.”

The LSEG website showcases cutting edge manufacturing companies, including Camlin (formerly Kelvatech).

LSE’s annual report “1,000 companies to inspire Britain (2015)” – available on the MATRIX website library.

Some key players in Northern Ireland

Turnover: £600.1mEmploys: 1,883



Turnover: £91.9mEmploys: 588





Turnover: £346.1mEmploys: 1,664Turnover: £153.7m

Employs: 566



Some of the top R&D spenders in AMME include....

Aerospace clusterKEY FACTS• NI aerospace is a $1.6b industry • Europe’s 8th largest aerospace region in revenue

terms• Over 44 ADSS companies in NI – 16 of which

(employing 9,253) are in top 200 AMME• 7 of the 16 established 30yrs+; 3 , 50yrs+• Bombardier established 80yrs• Supply chain – mature & diversified

FUSELAGES

NAVAL AND AIR DEFENCE SYSTEM

FLIGHT SIMULATION

NACELLE SYSTEMS

PRECISION MACHINING

KEY PLAYERS… TITANIUM PANELSAEROSPACE COMPONENTS

MARINE SAFETYSEATING FOR COMMERCIAL

AIRCRAFTS

Materials handling clusterKEY FACTS• 38 MH companies feature in AMME top 200:

employing 4,582• Long established MH heritage in NI – 10 of top 30

established 25yrs+ with the largest, Terex tracing its roots back to 1966.

• 2016 Hyster-Yale saw 400,000th forklift truck roll off Craigavon production line – marking almost 35yrs of continuous production at the plant

• CDE Global appear in LSE “top 1,000 companies to inspire Britain” 2015 and 2016

• Quarrying & Mining

• Waste management/ recycling

• Cargo/ container handling

• Logistics handling• Airport ground

support equipment

WASHING

CRUSHINGRECYCLING

SCREENING

TROMMELS

MARKETSKEY PLAYERS…

SHREDDERS

PICKING

Polymers clusterKEY FACTS• 50+ polymers companies in NI; 23 in AMME top

200 (employing 3040)• The polymers sector employs 1 in 6 of Northern

Ireland's manufacturing employees • Polymers companies generate £1 in every £8 of NI

total manufacturing output• Almost two thirds of NIPA members each export

to more than 30 countries worldwide • Queen’s Award for Enterprise success• 11 of top 30 polymers companies established

40yrs+

• Solutions for medical devices &health care

• Marine• Aerospace

• Automotive• Teletronics• Food & drink• Textile

markets

SHOT MOULDING

POLYETHYLENE (PE) PIPE SYSTEMS

COMPRESSION MOULDING AND RESIN TRANSFER

MOULDING

PYTHON DISPENSE SYSTEMS

RAPID PROTOTYPING

MARKETSKEY PLAYERS…

Construction products clusterKEY FACTS• 38 CP companies feature in AMME top 200• 6, 647 employees across the Construction

Products ‘top 200’ companies (of which top 10 employ70%)

• Combined turnover of CP ‘top 200’ is £33.5bn• 74% of the top 38 companies are established

20yrs and10 of those are established 35yrs+

• Windows• Doors• Fire glass• Ventilation

STEEL LINTELS

INJECTION MOULDING

EXTRUSION

ROTATIONAL MOULDED PRODUCTS

FLAT SHEET POLYCARBONATE

PRODUCTS

KEY PLAYERS…

GRP, PVC AND POLYCARBONATE

• Construction sector

• LHS

CONSUMERS

Agri-engineering clusterKEY FACTS• 19 Agri-Eng companies in AMME top 200;

employing 839 (66% of which are employed by top 5 companies)

• Only the top 2 companies employ 100+• Combined turnover of Agri-Eng ‘top 200’ is

£42.6bn• 8 of top 19 companies are established 20yrs+

and 6 of those are established 30yrs+

• Application in agriculture / forestry machinery and equipment

HYDRAULIC PUMPS

COW MATTRESSESSTEEL PRODUCTS

LOW VOLTAGE SWITCHGEAR

VENTILATION CURTAINS

CONSUMERS

KEY PLAYERS…

UMBILICAL SLURRY SYSTEMS

Research excellence

23

5

12

11

27

10

21

65

60

60

77

66

65

51

0% 20% 40% 60% 80% 100%

Physics

Mathematical Sciences

Computer Sciences & Informatics

Aeronautical, Mechanical, Chemical &Manufacturing Engineering

Electrical & Electronic Engineering, Metallurgy &Materials

Civil & Construction Engineering

Architecture, Built Environment & Planning

4* 3*

Research excellence

39

9

9

11

25

48

46

56

68

47

0% 50% 100%

Biomedical Sciences

Earth Sciences & Environmental Sciences

Computer Science & Informatics

Electrical & Electronic Engineering, Metallurgy & Materials

Architecture, Built Environment & Planning

4* 3*

FE sectorADVANCED ENGINEERING

Since its establishment in 2000, NRC has developed its expertise and resources in the area of manufacturing engineering and the range of services offered to industry.

Access to a Centre with modern engineering resources and expertise to support business development.

Knowledge transfer is offered in the areas of computer aided design (CAD), computer numerical control (CNC), CAD/CAM, coordinate measurement (CMM), robotics, rapid prototyping, pneumatics & electropneumatics, hydraulics, programmable logic controllers (PLC) and electrical and mechanical maintenance programmes.

All the Centre services can be tailored to create bespoke training solutions to meet the specific needs of industry.

Recently, an R&D section has been established within the College to economically engage with local industry in helping to develop R&D solutions for specific manufacturing problems, both in larger companies and SMEs.

Case Studies Range of case studies covering: Size of business Stage of growth Ownership – Group or

Domestic Cross-Disciplinary

Survey Word Clouds - weaknesses

Survey Word Clouds - threats

Survey Word Clouds - opportunities

Survey: Frequent & consistent themes Theme 1: Skills Apprenticeships ‘Green’ graduates Upskilling existing workforce Leadership & management

skills for SMEs Commercial exploitation skills Marketing & sales skills for

engineers

Theme 2: Sectoral Development Understanding of supply chain

needs Collaboration Articulation of combined strengths

Theme 4: Future Opportunities Celebration of existing strengths Ambition around a common theme New Department for the Economy Key themes from previous Matrix

reports – are these still valid?

Theme 3: Cost Energy Fx Rates stability Corporation Tax

Advanced Manufacturing Skills, DEL Ministerial Advisory Group

Image & Visibility of the sector Sector attractiveness – appeal to young people

making early choices based on good information Capture employability of any given degree/course

choice – and the growth in jobs in these sectors to drive attractiveness.

Visualisation of the data for schools and parents -beyond the number of graduates to the number placed in graduate jobs – challenge to HE/FE.

Final stage – the workshop

Parallel sessions, looking at the skills & sectoral development required to meet future opportunities. Expected to look at 5-10+ years but happily claim all early wins 0-5yrs...

What action by government is going to drive the next upward lift in the growth curve?e.g. M&A – consolidation

of Tier 3 position + potential to progress to Tier 2?

Infrastructure / capital investment?

Where? To address what gap? To deliver what added value?

Post-workshop focus

Post-workshop focus

Where is NI’s AMME pitch (e.g. at Catapult level?)

Post-workshop focus

Skills – including leadership & management skills for SMEs, commercial exploitation skills and marketing & sales skills for engineers.

Post-workshop focus

Influencing funding: cluster / sectoral focus -v- individual firm solutions. What difference could government make?

For more information, contact Matrix at

[email protected] or visit our website at www.matrixni.org

mailto:[email protected]

http://www.matrixni.org/

Documents

Advanced Manufacturing, Materials & Engineeringmatrixni.org/wp-content/uploads/2016/04/AMME-MARCH... · the nature or scale of engineering (e.g. nano-materials, micro -materials)