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Manufacturing risk management strategies
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Risk in Manufacturing
What are top risks for the manufacturing industry in the UK? Learn how to manage manufacturing risks better sustainably and more profitably.
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- Types of risk vary across different types of manufacturing but included in the this risk should be recruitment costs workplace safety finance risks political risks economic risks societal risks technology risks compliance and regulatory risks and environmental risks. The optimal management of these risks is best achieved by looking at the whole not the individual risks.
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The UK manufacturing industry is facing many new threats and opportunities in a dynamic changing marketplace. Supply chain management is a key part of manufacturing risk management to ensure the reliability and quality of parts and end product. Manufacturers have to strike a balance between reducing costs in the short term and long term business sustainability.
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Risks To Manufacturing Businesses News Views Reviews
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18th December 2018 UK Manufacturing Orders Grow For Second Month
British factory orders grew for a second month in a row in December according to Confederation of British Industry CBI.
Product Recall Announcement For Audi A6 and A7 Models https://t.co/zWn8VDryRW #Automotive #AutomotiveForum #AutomotiveNews #AutomotiveMagazine #AutomotiveReviews #CarMagazine #CarNews pic.twitter.com/cuHj1VTFUj
— Risk Management (@HolisticRiskMgt) June 6, 2018
5th March 2018 UK Manufacturing Firms Performing Well
According to the British manufacturers representatives EEF survey factory output at the start of 2018 is near record highs and British factory leaders are confident in their prospects for the future helped by strong overseas orders.
There is increased demand for UK products due to improvement in global economy.
27th February 2018 Small Medium Sized SME Factories Sales Expectations Near 3 Year High
Sales expectations of SME factories in UK are near 3 year high due to strong global economy growth and low value of the pound.
National Manufacturing Barometer survey has revealed manufacturing to be the fastest growing sector of Britains economy in the final quarter of 2017.
The survey also revealed that more than half of SME manufacturers plan to invest in plant and machinery over the next 6 months. SME manufacturers in UK are more confident in their prospects in 2018 than they were in 2017.
The National Manufacturing Barometer surveyed 320 companies in January 2018
2nd February 2018 British Small Manufacturers Fastest Rise New Orders Since 1995 In January
A Confederation of British Industry CBI survey has found that the UKs small manufacturers had their best increase in new orders in January since 1995.
The CBI surveyed a large number of small manufacturers for the survey, 339 firms were asked.
8th January 2018 UK Manufacturing Firms Optimistic About Business Prospects 2018
British manufacturers are optimistic about the UK economy and global economy. Optimism amongst manufacturing business leaders is at a 4 year high according to the manufacturers own organisation the EEF survey.
Top 3 UK key manufacturing business risks for 2018
- Rapid currency fluctuations source more UK suppliers and other global suppliers
- Skills gap invest in apprentices and training
- Cyberattacks develop skills to mitigate cyber threats
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5th January 2018 Do Not Panic UK Car Manufacturing Is Not Suffering
The UK has suffered a 5.6 percent fall in new car registrations in 2017 but 2017 still posted the 3rd highest new car registrations in the last decade.
If your industry posts record high new car registrations ever ever in 2016 it is likely that an increase in road tax and an increase in interest rates it is going to stop the run of record new car sales in the UK as happened in 2017. 2018 may moderate further but is more likely to stay at around 2017 car output levels.
Many financial experts in the early part of 2017 were warning about a growing new car lending financial bubble that was about to burst unless the Bank of England did something about lending to buy new cars and this could cause, it was argued, another financial crisis like 2008.
If you increase interest rates to curb inflation and spending then it should not come as a massive surprise that new car sales fall from the record highs of 2016. If this also means a financial crisis has been averted then that could be a good thing for the long-term sustainability of the car industry and the UK economy.
The Society of Motor Manufacturers and Traders SMMT are promoting their industry but they are not blessed with holistic economic glasses when looking to their future! They should be careful about crying wolf as when help is really needed it might not come.
Given that Forbes Magazine ranked the UK as the best country in the world to do business in 2018 despite Brexit interest rates are still comparatively low and unemployment is at levels not seen since mid 1970s now is not the time to shout for help from the government.
Bigger risks to jump up and down about in UK manufacturing:
- Cyber Risks and driverless technology
- Growing Skills Gap and improving apprenticeships and training
- Exporting more overseas to take advantage of low value of pound
The lack of sales in the UK domestic new car sales market is not the biggest threat to car manufacturing.
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