North Wales Advanced Manufacturing and Research Institute receives planning permission
To be located in Broughton, North Wales, the institute...
The Advanced Manufacturing and Research Institute has received the green light for construction.
To be located in Broughton, North Wales, the institute will work on sectors within advanced manufacturing, such as aerospace, automotive, nuclear, and food.
The site is anticipated to be operational by summer 2019, and the Welsh Government expect it to generate £4bn (US$5.5bn) for the welsh economy over a period of 20 years.
The government aims for the facility to enable further growth in North Wales’ supply chain, enhancing the Northern Powerhouse.
“I am delighted that planning permission has now been granted for the Broughton site of our new Advanced Manufacturing Research Institute,” commented Ken Skates, Welsh Economy Secretary.
“This means that work can continue at pace on a project which will maximize economic opportunities in the region and has the potential to increase Wales’ GVA by as much as £4bn over 20 years.”
“In order to compete globally, Wales must remain competitive. As set out in our Economic Action Plan this means adapting to modern techniques and understanding the potential opportunities offered by collaboration and changes in economy such as the fourth industrial revolution.”
The first member of the facility has been confirmed as Airbus, the aircraft manufacturer based in France.
“The approval is fantastic news not only for Airbus and aerospace but other industries such as automotive,” said Paul McKinlay, Senior Vice President of Airbus and Head of the Broughton Plant.
“The Institute will give a huge boost to the competitiveness of the advanced manufacturing supply chain in Wales and I am delighted Airbus is part of this exciting journey from the very start.”
“I’m looking forward to seeing new technologies and techniques being developed under the AMRI roof and the major benefits they will bring.”
Following the granting of planning permission, the appointment of a contractor is being conducted.
IHS Markit/CIPS: UK Manufacturing PMI near-record high
UK manufacturing trends
For the UK manufacturing sector, growth of output and new orders were both reported by IHS Markit and CIPS as among the best seen over the past seven years, which in turn has led to a strong increase in employment. Despite this, the sector continues to face supply chain delays and input shortages, which resulted in increased purchasing costs and record selling price inflation.
UK Manufacturing IHS Markit/CIPS Purchasing Managers’ Index® (PMI®)
Seasonally adjusted, IHS Markit/CIPS Purchasing Managers’ Index® (PMI®) rose to 60.9 in April, which was an increase compared to March (58.9) and above the estimated 60.7 for April.
Increasing for the eleventh consecutive month, the latest readings are the highest since July 1994 (61.0). The output growth for April has been attributed to the loosening of lockdown restrictions, improving demands and a rise in backlogged work.
“The manufacturing sector was flooded with optimism in April as the PMI rose to its highest level since July 1994, bolstered by strong levels of new orders and the end of lockdown restrictions opened the gates to business. It was primarily the home market that fuelled this upsurge in activity though more work from the US, Europe and China demonstrated there were also improvements in the global economy. This boom largely benefited corporates as output growth at small-scale producers continued to lag behind,” said Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply.
In addition to expanding production, total new orders rose for its third consecutive month, which was attributed to a revival of domestic market conditions, stronger client confidence, parts of the economy reopening and improving global market conditions.
While new exports rose in April, the rate was reported as weaker in comparison to new orders. “Companies reported improved new work intakes from several trading partners, including mainland Europe, the US, China and South-East Asia. Large-sized manufacturers saw a substantial expansion in new export order intakes, compared to only a marginal rise at small-sized firms,” said IHS Markit/CIPS.
UK Manufacturing’s outlook
Remaining positive at the start of the second quarter, 66% of companies forecast that output will be higher in a year's time, which is attributed to expectations for less disruption related to COVID-19 and Brexit, economic recovery, improved client confidence and new product launches.
“Further loosening of COVID-19 restrictions at home and abroad led to another marked growth spurt at UK factories. The headline PMI rose to a near 27-year high, as output and new orders expanded at increased rates. The outlook for the sector is also increasingly positive, with two-thirds of manufacturers expecting output to be higher in one year’s time. Export growth remains relatively subdued, however, as small manufacturers struggle to export,” said Rob Dobson, Director at IHS Markit.
Adding to comments from IHS Markit and CIPS, , Managing Director of Freight and Logistics at Accenture Global said: “While today’s figures are positive overall, the worsening supply situation is still a concern, with rates of both input costs and selling price inflation running far above anything previously seen. Shipping delays and material shortages are driving huge backlogs of uncompleted work and the surge in manufacturing orders is leading to many firms struggling to boost operating capacity to keep up with demand. With business expectations becoming even more optimistic as the economy rebounds, the big question will be whether firms will be able to cope with the surging inflows of new orders.
“As ongoing supply chain issues are still at large, companies with wide international footprints should look to reassess their logistics strategies by running supply chain stress tests and simulations in order to respond quickly to upswings and variability in demand. A flexible and resilient supply chain will be a key way for businesses to remain both competitive and stable as we emerge from the pandemic”