Government Incentives to Boost UK Manufacturing and Automation

At first glance, importing goods from overseas can seem a cheaper option than manufacturing them in the UK. In times when businesses of all shapes and sizes are looking to make cut costs as aggressively as possible, the cheapest option available is usually the preferable option.

But while the importation of goods from abroad can open the door to certain benefits, it is far from an ideal solution. Something thousands of UK businesses learned the hard way during and after the pandemic, which brought to home just how fragile the average global supply chain is.

Not only did the pandemic make it difficult (or impossible) for businesses to get their hands on what they needed, but procurement costs also increased significantly in most sectors. As a result, those that had previously committed themselves to the apparent savings of importing goods began considering the true costs (and potential savings) of manufacturing in the UK.

The costs of importing goods can be high, due to factors such as currency fluctuations, transportation costs, cross-border tariffs and so on. Coupled with the potential complications and delays that cannot be ruled out with complex supply chain operations, these costs can quickly add up to a major headache.

Not to mention, make it difficult for businesses in some sectors to remain competitive on a global stage.

Increasingly, businesses are warming to the benefits of manufacturing in the UK and procuring products domestically. Manufacturing in the UK brings a broad range of benefits, including but not limited to lower transportation costs, greater control over production processes and the flexibility needed to quickly respond to changes in the market.

In addition, the UK has a particularly strong engineering sector with a highly skilled workforce, adding up to a major competitive advantage.

Another of the UK’s strengths where manufacturing is concerned is the broad and diverse adoption of automation technology and robotics. The use of robots and automation technology in general can significantly boost productivity, quality and efficiency, while at the same time eliminating the risk of human error and or reducing costs.

When comparing product import costs to those of manufacturing products domestically, businesses must take into account all direct and indirect costs. Some products may be cheaper to source internationally, but the potential costs of delays and disruptions can often far outweigh these initial savings. By sourcing goods domestically in the UK, these risks can be practically eliminated, resulting in a more reliable and stable supply chain.

With the aim of bolstering all of the above, the UK government has confirmed plans to invest more heavily in the country’s manufacturing sector and to ensure that the UK remains a competitive player in the global market. This is likely to bring further benefits for businesses that procure products domestically, particularly where the implementation of robotic automation is concerned.

So once again, while the importation of goods may seem cheaper due to the initial savings available, manufacturing in the UK often represents a more cost-effective solution. Given the benefits it brings (reliability, stability, lower risk of delays/and disruptions), UK manufacturing provides businesses with a much more viable and potentially profitable long-term supply chain solution.

At System Devices, we have positioned ourselves ahead of the curve by ensuring good stock levels and we can provide EPSON Robots and Weintek HMI's from stock. We also have Industry 4.0 ready technology from OPTO 22 with the pioneering GroovEPIC (Edge Programmable Automation Controller) and GroovRIO (Remote I/O) ready to ship with next day delivery.