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Post-Brexit effect: Manufacturers boost use of robots

Reporter: Liang Kejia, Li Sien 丨 CCTV.com

08-01-2016 11:40 BJT

Britain's move to leave the EU could force manufacturers to boost their use of robots and automation to control costs and a potential shortage of migrant labour? Or could a Brexit actually tip the UK economy into recession, stalling the robo-invasion? Angeline Ong went to investigate in this Reuters exclusive.

Simon Topman, CEO of Acme Whistles, said, "Three whistles you should know about -- the ACME nightingale call, the ACME siren and the ACME train whistle. "

Now if it's one thing Simon Topman knows, it's how to whistle up success in manufacturing.

Founded in 1870, Acme made the first Metropolitan police whistle in 1883, the "Thunderer" for the Titanic and most recently, the "Tornado 2000" used at Euro 2016.

Exporting to 119 countries, the world's biggest whistle maker became known for its high-quality "HANDMADE" products, but the UK's vote to leave the European Union may now force it to change.

"We're definately going to have to look at automation as a way to greater efficiency, but at the same time we have to retain the craft that make the product special. I am a bit concerned, though,that we might have scored an 'own goal' with this Brexit and cut ourselves off from an important source of competitive advantage," said Topman.

Acme still retains "skilled" workers producing, cleaning, plating and even polishing by hand. But, some automation, like this plastic injection molding device has crept in over the years and that's not all.

"This area used to house more than 20 people soldering with bunsen burners, but now it's just this one man and one machine," said Angeline Ong.

Topman says the usage of robots may grow as manufacturers face Brexit-related headwinds including exchange rate fluctuations, rising labour costs and tariffs.

This trend is not unique to the UK, global industrial robot sales rose by a record breaking 8% last year, says the International Federation of Robotics, as more companies looked to make their factory floors more efficient.

Here in Europe, Germany's not just a big user, it's also now one the world's biggest exporter of robots, and many say the UK is being left behind.

Dan Somers, CEO of Warwick Analytical Software, said, "Brexit is a wake up call for the UK. If you look at Germany, Germany has led the way with industry 4.0 in terms of automation and analytics, now the UK has no choice in my view and anyone also affected by the potential recession."

And there's a real risk economic contraction - the Bank of England's already hinted it's ready with more stimulus to stave off a recession.

Somers said, "If there's a deep recession, companies will cut their investment across the board. However, there will be firms looking to invest in robotics, automation, analytics and like in Darwinian terms, it will be these good (companies) ones that will survive."

For Topman, the key will be getting robots to help his craftspeople producing these special, individual whistles without losing their handmade charm.

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