Innovate UK Future Worlds Event - Material World – Lynne McGregor

1. Manufacturing - a Priority area in the Material World
24 March 2015
Lynne McGregor,
Lead Technologist
High Value Manufacturing
Lynne.mcgregor
@innovateuk.gov.uk

2. Slide 2
Why Manufacturing is Important
• Global market worth £6.3 trillion
• UK in top 10 world manufacturers
• GVA of £130 bn (10% UK GVA)
• Half of UK Exports
• World #2 Aerospace
• 2 of top 6 Pharma’ companies UK based
• Resurgent auto industry – 84% exported
[Manufacturing GVA by Country
United Nations Statistics Division, Value
Added by Country, US$bn, 2010]
UK Manufacturing
• Global leader in £20 billion subsea equipment market.

3. And its important to Northern Ireland
Total manufacturing sales up 4.0% in current prices and 3.2% in real terms.
– Total sales worth £18.1billion in 2013/14., an increase of 4.0% over the year
compared to an increase last year of 4.4% in current prices.
• Total sales are comprised of:
– Sales to Northern Ireland (domestic sales).
– Sales to GB.
– Exports (sales to the Republic of Ireland, the Rest of Europe and the Rest of the
World).
• Sales within Northern Ireland decreased in current prices by £37million to
£3.7billion – down 1.0% over the year and remaining below peak levels last
reported in 2007/08.
• Sales to Great Britain increased in current prices by £244 million to £8.2 billion
– up 3.1% over the year., highest level of sales to GB on record in current
prices
• Exports increased by £491million (8.7%) over the year, to £6.1billion in current
prices, a rise which was largely driven by an increase in sales to the Rest of the
EU. After adjusting for price changes over the year, this represented an
increase of 8.6% in real terms, and follows growth of 3.2% in real terms in the
previous period (2011/12 - 2012/13).

4. Slide 4
High Value Manufacturing
Such potential is characterised
by a combination of high R&D
intensity and high growth
High value manufacturing is the application of leading-edge technical
knowledge and expertise to the creation of products, production processes,
and associated services which have strong potential to bring sustainable
growth and high economic value to the UK. Activities may stretch from R&D
at one end to recycling at the other.
HVM Definition

5. Innovate UK Investment Criteria
• Sector attractiveness
global market
growth potential
UK R&D intensity, UK capacity to exploit
• Technology readiness (TRL)
• Additionality (will Innovate UK investment make a
difference?)
• For HVM: national competencies in manufacturing

6. Future of Manufacturing: Foresight Report
Manufacturing in 2050 will look very different from today:
• capable of rapidly adapting their physical and intellectual infrastructures to
exploit changes in technology
• manufacturing will adapt faster, more responsive to changing global markets
and closer to customers.
Constant adaptability will pervade all aspects of manufacturing:
• research and development, innovation, production processes, supplier and
customer interdependencies, and lifetime product maintenance and repair.
• products and processes will be sustainable, with built-in reuse, remanufacturing
and recycling for products reaching the end of their useful lives.
• closed loop systems will be used to eliminate energy and water waste and to
recycle physical waste.

7. Manufacturing Foresighting - EFFRA

8. Megatrends and manufacturing
The analysis shows that megatrends have considerable impact and
drive structural changes in nearly all manufacturing sectors. These
megatrends can be identified as:
• Changing demographics (growing world population, aging societies,
increasing urbanization)
• Globalization & future markets (BRIC and beyond)
• Scarcity of resources (energy, water, other commodities)
• The challenge of climate change (increasing CO2, global warming,
ecosystem at risk)
• Dynamic technology & innovation (ICT and virtualisation, technology
diffusion, the age of life science, ubiquitous connectivity, sensing and
digitalisation)
• Global knowledge society (know-how base, gender gap, war for talent,
multiplication of data and information)
• Mass customisation (personalised customisation)
• Sharing global responsibility (shift to global cooperation, growing power
of NGO´s, increasing philanthropy)

9. Advanced manufacturing processes
• Net shape and additive manufacturing,
• Photonics-based materials processing technologies,
• Shaping technology such as forming and machining,
• High productivity and “self assembly” technologies
• Surface engineering for smart products,
• Methods for handling of parts, metrology and inspection,
• Flexible Sheet-to-Sheet (S2S) and Roll-to-Roll (R2R), for plastics
electronics and large volume patterning at nano-scale,
• Integration of non-conventional technologies to develop new
multifunctional or hybrid manufacturing processes

10. Mechatronics for Advanced Manufacturing
• Manufacturing systems are becoming smarter to generate
high value (quality, productivity) while consuming less energy
and generating less waste.
• They feature high levels of autonomy and cognitive
capabilities, largely inspired by and making use of robotic
technologies.
• Technologies required include:
–Automation
–Autonomy
–Connectivity with other processes / equipment, schedules,
plans and customer requirements
–Data collection, analysis and use

11. Information and Communication Technologies
• Collaborative Manufacturing
• Sensors, feedback and control
• Remote operation and products as a service
• Connectivity essential
– Manufacturing processes seamlessly and bi-directionally
interact with real-world objects
– on a global scale, across a variety of application domains and
stakeholders thus realising the ‘Internet of Thing’s.

12. Other Considerations
• Advanced Materials
– Developing new or revised manufacturing processes for
using new materials
– Develop new processes to produce new materials at
commercial scale and cost
• Sustainability
– Design for recycling and reuse
– Remanufacturing
– Efficient manufacturing using reduced materials, energy and
water
• New Products and Markets
– Customer led development
– Mass customisation
– Design for manufacture

13. The Future of High Value
Manufacturing
We asked IfM to identify:
• most important trends influencing the
changing nature of manufacturing
globally
• greatest challenges & opportunities to
the economic competitiveness of UK
manufacturing
• most promising UK emerging science,
engineering & management
innovations to meet these challenges
& opportunities / capture value for UK

14. Cross-Cutting Strategic Themes
22 National Competencies under these

15. Competencies
Landscape study
identifies:-
•5 Strategic
themes &
•22
Competencies
HVM Strategy
builds
competence in
selected areas

16. HVM Landscape and Strategy Refresh
Global Trends /Business Opportunities
Business Capabilities
Manufacturing Competences

17. Lynne McGregor
Lead Technologist, High Value
Manufacturing
lynne.mcgregor@innovateuk.gov.uk
07909 890834
879