Rolls Royce smashes previous record sales figures in 2018
Rolls Royce has revealed its record global results for 2018. The company has achieved the highest annual sales in its history, with 4,107 cars delivered in over 50 countries around the world, where it continues to generate a positive contribution to shareholder, BMW.
In a year of multiple records, Luxury House also enjoyed unprecedented demand for its Bespoke creations, and launched the new Cullinan – the Rolls-Royce of SUVs – to international acclaim.
“2018 was a most successful, record-breaking year for Rolls-Royce. We have seen growth in all our regions around the world. At Rolls-Royce we are deeply focused on each and every one of our customers and are delivering on their demanding expectations. The Home of Rolls-Royce at Goodwood is acknowledged and celebrated as a global centre of luxury manufacturing excellence, where our skilled, dedicated team create the world’s finest, most sought-after luxury products. We set a formidable mark in 2018; I am confident it will spur even greater success in 2019,” said, Torsten Müller-Ötvös, CEO, Rolls-Royce.
The all-new Phantom drove growth and the Americas region remains the company’s biggest market accounting for 30% of sales. China has also become a growing market, accounting for 40% of sales in 2018. 10% were sold in the UK market.
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“Phantom is split 50/50 between the extended wheelbase and the regular wheelbase. Regular wheelbase is the majority for the United States because the customer likes to drive the car himself, behind the wheel,” commented Müller-Ötvös.
The Home of Rolls-Royce at Goodwood is acknowledged and celebrated as a global centre of luxury manufacturing excellence, where there continues to be increased demands for the delivery of bespoke models. The new Cullinan model is one which is also seeing increased demand. However, it is unclear how its manufacturing lines will cope with the possibility of a hard Brexit, where relationships with over 600 suppliers would become significantly impacted.
“You can plan for whatever you want but you can’t store up weeks of parts, and if the logistics chain breaks it will affect production,” Müller-Ötvös stated in a briefing at Rolls-Royce’s Mayfair showroom. “You only need to miss one component and you can’t finish the car.” Nonetheless, the company has ruled out the possibility of relocating outside of the United Kingdom, and will continue to explore viable options if this is to occur.
Gartner: Leaders Lack Skilled Smart Manufacturing Workers
With organisations rapidly adopting industry 4.0 capabilities to increase productivity, efficiency, transparency, and quality as well as reduce cost, manufacturers “are under pressure to bring their workforce into the 21st century,” says Gartner.
While more connected factory workers are leveraging digital tools and data management techniques to improve decision accuracy, increase knowledge and lessen variability, 57% of manufacturing leaders feel that their organisations lack the skilled workers needed to support their smart manufacturing digitalisation plans.
“Our survey revealed that manufacturers are currently going through a difficult phase in their digitisation journey toward smart manufacturing,” said Simon Jacobson, Vice President analyst, Gartner Supply Chain practice.
“They accept that changing from a break-fix mentality and culture to a data-driven workforce is a must. However, intuition, efficiency and engagement cannot be sacrificed. New workers might be tech-savvy but lack access to best practices and know-how — and tenured workers might have the knowledge, but not the digital skills. A truly connected factory worker in a smart manufacturing environment needs both.”
Surveying 439 respondents from North America, Western Europe and APAC, Gartner found that “organisational complexity, integration and process reengineering are the most prevalent challenges for executing smart manufacturing initiatives.” Combined they represent “the largest change management obstacle [for manufacturers],” adds Gartner.
“It’s interesting to see that leadership commitment is frequently cited as not being a challenge. Across all respondents, 83% agree that their leadership understands and accepts the need to invest in smart manufacturing. However, it does not reflect whether or not the majority of leaders understand the magnitude of change in front of them – regarding technology, as well as talent,” added Jacobson.
Technology and People
While the value and opportunities smart manufacturing can provide an organisation is being recognised, introducing technology alone isn’t enough. Gartner emphasises the importance of evolving factory workers alongside the technology, ensuring that they are on board in order for the change to be successful.
“The most immediate action is for organisations to realize that this is more than digitisation. It requires synchronising activities for capability building, capability enablement and empowering people. Taking a ‘how to improve a day in the life’ approach will increase engagement, continuous learning and ultimately foster a pull-based approach that will attract tenured workers. They are the best points of contact to identify the best starting points for automation and the required data and digital tools for better decision-making,” said Jacobson.
Long term, “it is important to establish a data-driven culture in manufacturing operations that is rooted in governance and training - without stifling employee creativity and ingenuity,” concluded Gartner.