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UK Manufacturers Gain - Resource Efficiency

Greg LaveryNext Manufacturing Revolution Report and Programme of Action Launched

Co-authored by Lavery Pennell, the University of Cambridge’s Institute for Manufacturing and 2degrees, this landmark report summarises 12 months of research examining non-labour resource efficiency performance compared to international good practice for each manufacturing sub-sector. It found that while many UK manufacturers have achieved 10 to 15% efficiency gains over the last decade, leading companies have achieved over 50% improvements in the same timeframe. 

All manufacturing companies were found to have room for improvement:

  • Significant variation in non-labour resource performance was observed between companies within each manufacturing sub-sector.
  • Four types of improvement were identified which are rarely all fully utilised: incremental improvement, process and system improvement, structural change and core redesign.
  • Even leading companies are performing inconsistently across the resource efficiency topics examined of circular resource use, transport efficiency, energy efficiency, packaging optimisation, supply chain collaboration and resource efficient product & business model innovation.

The opportunity was conservatively calculated to be worth £10 billion p.a. in additional profits for UK manufacturers, to create 300,000 new jobs and to reduce CO2e emissions by 24% for the UK manufacturing sector (4.5% of UK’s total annual emissions).

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Wider benefits from the programme also accrue to communities including indirect jobs, greater tax revenues and an improved environment. 

Based on this research, and supported by case studies from the private sector, NMR has developed a programme to help manufacturing companies realise these benefits, comprising three platforms.  The first is the NMR Community, which provides in-depth information, research and interactive information exchange forums, openly accessible to all. The second focuses on Barriers Resolution and Rollout, working collaboratively with experts and manufacturers to overcome industry obstacles that currently prevent the improvement of non-labour resource productivity, through a series of workshops. The third platform is Tailored Support which involves one-to-one advice for manufacturers seeking to identify improvement opportunities within their companies from non-labour resource management. 

Implementation of this programme is now underway; collaboration with government, member organisations, other NGOs, and publications will assist to accelerate this programme. Organisations and manufacturers seeking to participate can contact Greg Lavery

You can download the full report and read more about NMR at www.nextmanufacturingrevolution.org.

The Next Manufacturing Revolution is a not-for-profit collaboration between Lavery Pennell, the University of Cambridge’s Institute for Manufacturing and 2degrees. 

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