1. Biz Network MARCH 2023 1-36.qxp_Chamberlink 01/03/2023 10:14 Page 34
STRATEGIC PARTNERS AND PATRONS
Putting our region at the heart of UK manufacturing By Professor Jan Godsell, dean of the School of Business and Economics at Loughborough University The UK was at the heart of the first Industrial Revolution. Powered by coal, the UK was able to move from craft to mass production – creating new jobs, increased wages and improved standards of living. Consumption-driven economic growth was fuelled by huge increases in productivity. Key to the UK’s success was its global access to raw materials, local access to energy (coal) and innovation to develop the technology that enables this shift to mass production. Little thought was given to the broader environmental and social considerations, with cities engulfed in smog, and children working in factories. Over time, these issues were addressed but the long-term impact is only beginning to be fully realised. We are now in the era of Industry 4.0, or the Fourth Industrial Revolution. Initially a name for the German government’s strategy, to reinvigorate German manufacturing in the post-2008 global economic crisis, the term has gained popular appeal. At its core was the adoption of digital technologies to create the internet of things (IoT). Over the past decade, with increased awareness of the environmental and societal impacts of consumption-driven economic growth, it signifies a more fundamental shift.
GROWING COMPETITIVENESS THE RIGHT WAY There is increasing recognition of the need to decarbonise the manufacturing ecosystem if the UK is to meet its net zero 2050 goals. This is driving the adoption of low-carbon energy sources, and more resource-efficient methods of production. It is also creating a more fundamental change.
‘There is increasing recognition of the need to decarbonise the manufacturing ecosystem’ United Nations Sustainable Development Goal number 12 identifies the need for more responsible consumption and production. The need to consider new models for economic and business development that decouple consumption from production. Business models have traditionally been built on “linear economy” models where raw materials are mined, converted into components, assembled into products that are used, and sent for recycling, energy recovery or landfill at end of life. As consumers have valued newness over utility, and manufacturers have sought to make products as cheaply as possible, the ability to reuse, repair
Professor Jan Godsell
and remanufacture products has become more difficult. The future manufacturing ecosystem is built on the principles of a “circular economy” – where we seek to keep products in their highest possible value state through reuse, repair and remanufacture. It’s a future where recycling is a last resort. Digital technologies enable the more effective monitoring of the physical location of assets, their condition and usage. They can also enable digital payment and technical support.
INNOVATING IN THE WAY WE MAKE THINGS Innovation is key to supporting the transition to a more circular economy. It starts with the innovation required to develop the new digital technologies to enable the transition. Innovation may be more transformational and involve the development of new business models. HP Instant Ink is a great example of how IoT technology in home printers enables the provision of home printing as a service. For a fixed rate, subscribers can print an agreed number of pages per month with a guarantee that they will never run out of ink. The ink levels are remotely
monitored, and new cartridges sent in the post when required. Used cartridges are returned to be refilled and reused. These new business models are often run in parallel with existing business models, such as the traditional purchase of ink cartridges, which may use innovation to improve the productivity and sustainability of existing manufacturing processes or supply chains. At the heart of the UK manufacturing ecosystem, the Midlands can lead the UK in creating the first regional manufacturing ecosystem that is low carbon and supports the principles of the circular economy. Using innovation to create new business models, products, services and technologies that enable economic prosperity in a responsible and sustainable way. Through the Made Smarter Innovation-funded Interact Project, Loughborough University is working with key stakeholders in the region to develop a 2040 Future Digital Manufacturing Ecosystem roadmap for the Midlands. Be part of the change, reach out and start to Interact. Read more at interact-hub.org
Tributes paid to popular law partner National law firm Freeths has paid tribute to the managing partner of its Leicester office, Mukesh Patel, who died unexpectedly on 18 February. A popular member of both Freeths and the local community, Mukesh had been with the firm since 2009 and quickly established himself as a highly respected member of the business. The firm said he always regarded his colleagues at Freeths as his second family, having led the dispute resolution team in Leicester and subsequently becoming managing partner of the Leicester office in 2014. Regarded as a man of impeccable manners, courtesy and respect, Mukesh committed himself to
34
business network March 2023
doing everything he could to create a happy and inclusive team within the firm. He leaves behind his wife and two sons. Julian Middleton, chairman of Freeths, said: “He was an exemplary team player and would always place his personal interests second to those around him for the common good. “Mukesh was very well known in the Leicester business community and was tireless in his efforts to raise the profile and reputation of the firm and his office. “We have lost a real force for good in the Freeths community, but we will ensure his legacy lives on through our commitment to those shared principles that were so dear to him.”