IN THIS ISSUE 03 04

NEWS, INTELLIGENCE AND EXPERT OPINION FOR EEF MEMBERS IN THIS ISSUE
03 INTERVIEW
How to cultivate young talent
with EDT
04 A proud day
EEF’s first National
Manufacturing Conference
17 APPRENTICES
What's new: apprentice
recruitment
20 ENERGY
How to ease the pain of
rising energy costs
HOW TO
MANAGE IN
CHALLENGING
TIMES
Building a flexible, productive and
high-performing workforce. Pg 14
summer 2012
02 INSIGHTS WELCOME
A note from our CEO
Manufacturing Insight for EEF members.
With a backcloth of continuing
economic uncertainty, EEF
continues to remind government
how crucial the manufacturing
sector is to economic recovery and
to press policy makers to empower
industrial-led growth.
These efforts are paying dividends
and we are proud to have influenced
key decisions, such as reforms to
the R&D tax credit, reductions in
Corporation Tax, more business
friendly employment laws and
carbon reduction policies.
You can read more of the detail on
pages 10 and 11. In this issue we
celebrate the EEF members who
are this year's Queen's Award for
Enterprise winners.
They comprise almost 10 per cent of
all 2012 winners, which bodes well
for the quality of entries to our own
EEF Future Manufacturing Awards.
Earlier this year many of you
attended our first National
Manufacturing Conference followed
by our prestigious Manufacturers'
Dinner.
Such was the success that we hope
you will join us again on 5 March
2013 for both events which provide
a great opportunity to share best
practice, network with peers,
challenge political leaders and raise
the profile of the manufacturing
sector.
Terry Scuoler, CEO, EEF
EEF Events
Intelligence-sharing, best practice and networking opportunities.
n EEF Future
Manufacturing
Awards Regional
Celebration Lunches
North West (14 Nov)
North (16 Nov),
Midlands (8 Nov),
Wales (8 Nov),
South East (6 Nov),
South West (7 Nov)
Five co-located
shows for composites,
aero engineering, auto
engineering, plastics
electronics, and wind
power. NEC Birmingham
7/8 November. We are
offering members a limited
number of free delegate
upgrade passes. Contact
[email protected]
n EEF Made in Britain
Photography Awards
Ceremony
House of Commons,
Westminster
4 December
n Member Briefings
Various locations and dates
Free and exclusive to
EEF members
n Member Connect
Various locations and dates
Free and exclusive to
EEF members
For our full events listing
and booking information
contact: 0845 293 9850,
www.eef.org.uk/events
n EEF @ Advanced
Engineering Show
(stand 215).
Insights magazine | www.eef.org.uk/insights
INSIGHTS INTERVIEW 03
GROWING
NEW TALENT
Dr Gordon Mizner, CEO of EDT, explains
how EEF members can cultivate new talent.
to pick engineering and science
options at GCSE (or equivalent).
By doing this the company engages
with students in their local area and
boosts the supply of local people
with the appropriate qualifications
for future employment.
Q: How can EDT help
manufacturers attract and
develop talent?
A: EDT can help manufacturers
to engage with sixth-form, gapyear and undergraduate students
who are on the path towards
engineering, science or technology
careers. Through EDT schemes,
these students take part in projects
with company mentors to give
them work experience and soft
skills to help them in their future
careers. By providing such projects
and mentors, a company builds
a relationship with the students,
thereby providing the option to
keep in touch with them and
employ them in the longer term.
We can also help fill the future skills
gap by working with companies to
inform and inspire younger students
Insights magazine | www.eef.org.uk/insights
Q: What are the benefits for
businesses?
A: As well as the opportunity
of presenting your company to
potential future employees, taking
part in programmes will also
benefit your own employees in
development of communication,
mentoring and organisational
skills. Dr Stephen Bold, Managing
Director of Sharp Laboratories of
Europe put it well when he told
me:
YEAR IN INDUSTRY
DELIVERS FOR DELPHI
EEF member Delphi Diesel
Systems will welcome its
82nd Year in Industry student
this September and the EDT
programme is key to its talent
management strategy.
“The Year in industry
complements our apprentice
and graduate schemes”, said
Kathrin Beckerleg, Delphi's
HR Manager - Learning and
People Development. “We are
able to identify and develop
our future engineers and 86%
of those teenagers who we
select to support through
University return to work for
us after graduation.”
The aspiring young engineers
have paid their way, with one
student resolving a £300,000
stock error, and another
addressing machine issues
to raise the pass rate on a
product line to 98%.
“The members of the lab who have
regularly shown their work to year
11 students stand out a mile. We
have wonderfully clever people
here, but not all scientists are natural
communicators. Seeing your work
through the eyes of 16 year olds and
learning how to present so that you
keep them on the edge of their seats
are great skills to have.”
To find out how EDT can help
you grow new talent, visit:
www.etrust.org.uk
David Sutherland (right) is a
former Year in Industry student,
now working as an undergraduate
apprentice at Delphi. He is pictured
with graduate Ian Price-Evans.
04 INSIGHTS CONFERENCE AND DINNER
SAVE TH
E DAT
EEF National E:
Manufact
u
Conference ring
Manufact and
urers’
Dinner
Tuesday
5 March
2013.
CONFERENCE
AND DINNER ARE
PROUD EVENTS
This year’s EEF National Manufacturing
Conference and Manufacturers’ Dinner was
such a proud and successful occasion that
we will repeat both in 2013.
Insights magazine | www.eef.org.uk/insights
INSIGHTS CONFERENCE AND DINNER 05
the Manufacturers’ Dinner in
his opening address. Keynote
Conference speaker Dick Olver,
Chairman of BAE Systems, urged
the government to apply a key
‘growth test’ to all policy initiatives
and major procurement decisions,
with those failing to promote
growth being subject to review.
The collective voice of industry
rang out loud in the corridors
of power as a ‘who’s who’ of
manufacturing, politics and
media gathered in London on
6 March 2012 for the first ever
EEF National Manufacturing
Conference, followed by our
biennial Manufacturers’ Dinner at
the Dorchester Hotel.
Live broadcasts from Sky TV, BBC
News and national radio captured
the conference highlights, while
vigorous tweeting from inside the
hall meant that the event trended
on twitter. Most of the business and
industry editors from the nationals
and newswires were in attendance
at both the conference and dinner
- meaning that manufacturing
had the attention it deserves for
24 hours and beyond, with plenty
of media goodwill and contacts
‘banked’ for the future.
Ed Miliband, Leader of the
Opposition, praised manufacturing
for its success ‘against the odds’.
He called for renewed “pride and
patriotism”, urging the government
to support a Made in Britain mark
for products. Business Secretary
Vince Cable expressed a need for
a properly articulated industrial
strategy and a more proactive
policy towards British industry.
These views chimed with EEF's
budget submission, launched on
the day and given attention by
Chancellor George Osborne at
The date for next year’s EEF National
Manufacturing Conference and Manufacturers’
Dinner is set for Tuesday 5 March 2013.
Reserve this key date in your calendar. It’s
your opportunity to challenge leading political
decision-makers, share best practice, stimulate
debate, solve problems together, gain industry
insights and make connections.
Insights magazine | www.eef.org.uk/insights
Terry Scuoler, EEF Chief
Executive, said: “The conference,
timed just ahead of the Budget,
provided the opportunity to remind
government that manufacturing
requires help, not hindrance, to
fulfil its pivotal role in leading the
UK through economic recovery.
Our members were able to make
their voices heard at the highest
levels of government – demanding
new measures to champion
industrial-led growth and to set a
new compass to seize opportunities
in expanding international
markets.”
The conference was supported
by headline sponsor Lombard and
delivered in association with
The Manufacturer.
Photos from the event and
conference speeches are available at
www.manufacturingconference.co.uk
The programme will be released in the early
autumn. In the meantime, this is your conference,
so let us know your views. What issues do you
believe are important to discuss and debate at the
next EEF National Manufacturing Conference?
To register your early interest, or to feedback
your views, contact Jo Britton at
[email protected]
06 INSIGHTS AWARDS
STAND UP AND BE
RECOGNISED
Share your success and give your people the recognition they deserve. We think
the things you do to make your business a triumph are worth shouting about.
Insights magazine | www.eef.org.uk/insights
INSIGHTS AWARDS 07
We are seeking stories of successful
projects that may have grown your
business, increased your export
market turnover or developed new
market opportunities, improved
operations, reduced environmental
impact or motivated and harnessed
the talent of your staff. We are also
looking for outstanding Apprentices
who are, of course, the future of
UK manufacturing.
It’s not often you get the chance to
showcase your team’s/company’s
innovations and achievements.
By entering the EEF Future
Manufacturing Awards you can
do just this.
So why don’t you…
–Boost employee motivation, show them you’re proud and focus your team on even
greater success.
–Enhance your employer profile and attract the best talent to
your team.
–Raise awareness of your company and benefit from great PR.
–Gain recognition from the other parts of your business and get noticed by your Board.
–Prove your credentials and show how you're focused on the future.
So, how straight forward is
writing a winning entry?
Entering is simple and we’ve
got tools to assist you in getting
underway. Our website is full of top
tips from our Awards team who are
also available to give you support on
any aspect of completing your form.
This can include advising on the
best category to enter, developing
your story and giving feedback on
your draft entries.
Insights magazine | www.eef.org.uk/insights
Tips from previous winners
Make sure that you answer the
questions in a way that really brings
the story to life and stresses the
importance of the people behind
the great research, development
and innovation that goes on in
your company.
Michael Johnson,
GP Acoustics (UK) Ltd
Be yourself and let your passion
about what you do, lead you
down a natural path.
Stephanie Oswald, BAE
Systems Global Combat
Systems
Give real examples of what
you have done and how it has
contributed to your company for example, improving system
reliability or shortened production
times.
Michael Williams,
Severn Trent Water Ltd
Provide an example of how your
efforts have made a real difference
to your company or working
environment and be able to
demonstrate this.
Alan Maguire, BAE Systems
Don’t sell yourself short remember to encompass all the
great things your company has
achieved. If your business did it
and you did it well, you deserve
recognition for it.
Rhys Williams, GE Aviation
CONTACT US:
The Awards are free to enter, don’t
miss this opportunity to raise your
profile. For details of this year’s
categories and advice on entering
visit www.eef.org.uk/awards,
email [email protected] or call
Rachael Moss on 020 7654 1540.
SNAP UP YOUR CHANCE TO
WIN A SHARE OF £5,000 OF
CANON EQUIPMENT
08 INSIGHTS photography AWARDS 2012
Focus your camera on British manufacturing and help transform the image of
our industry by entering the EEF ‘Made in Britain’ Photography Awards.
We want you to capture images of British products, components or processes your image could be of anything from turbines to silicon chips, or could portray
any part of the journey in inventing, designing or making British products.
Show us the best of what’s made in Britain before 28 September 2012 for your
chance to win. Entry is free and open to everyone in three categories; amateur,
professional and young person (14-19.)
For information and to
upload your images visit
www.eef.org.uk/photo
or contact Stuart Biddle
on 020 7654 1501.
HEADLINE SPONSOR:
SUPPORTING PARTNERS:
Insights magazine | www.eef.org.uk/insights
INSIGHTS photography AWARDS 2012 09
BRING
BRITISH MANUFACTURING
INTO FOCUS
Take a snapshot of modern manufacturing and win a share of £5,000
worth of hi-tech Canon equipment. Challenge your team to get snapping
and enter the EEF Made in Britain Photography Awards.
The EEF Photography Awards
are a great opportunity to capture
the brilliance and beauty of
your shop floor processes and
its output. We’re seeking to
present a picture of contemporary
British manufacturing, giving it
greater visibility and changing the
misconception that ‘Britain doesn't
make anything anymore’.
“EEF’s Manufacturing Photography
Awards will help raise awareness
of how interesting and dynamic
the industry is, while tackling
outdated perceptions. The Awards
complement the work of the
Government’s very own Make
it in Great Britain and See Inside
Insights magazine | www.eef.org.uk/insights
Manufacturing campaigns.” Mark
Prisk, Minister of State for Business
and Enterprise.
Your images should capture British
products, components or processes
in abstract form or in their full
glory and could be anything from
turbines to ceramic pots, steel rods
to silicon chips - the theme is open
to your interpretation.
The Awards are open to
professionals, amateurs and young
people (14-19), and there is no
cost to enter.
So, tell any budding David Baileys
among your staff about the awards,
especially your young apprentices.
If you have links with schools or
colleges, why not invite them in for
a photography session?
Alternatively, if you’ve
commissioned professional
photography, encourage the
photographer to enter those images.
Closing date is 28 September
2012. Find out more at
www.eef.org.uk/photo, email
[email protected] or call
Stuart Biddle on 020 7654 1501.
10 INSIGHTS INSIGHTS POLICY AND REPRESENTATION
Sign up
for
our wee
Intelligence kly
Briefing
:
www.eef
.org.uk/
represen
tation
CHAMPIONING
MANUFACTURING GROWTH
‘Growth’ and ‘re-balancing our economy’ is the talk of politics and EEF’s
role is to help translate such buzzwords into active industrial strategy that
helps, rather than hinders, manufacturing growth.
Stephen Radley, Director of Policy, EEF
It is clear that the economic
situation remains precarious, as
reflected in the messages and
policy priorities we continue to
raise with government on behalf
of our members.
rate of Corporation Tax. Later this
year we will produce more research
on the role of the tax system
in supporting manufacturing,
particularly in supporting capital
investment.
Growth Campaign
Flexibility Campaign
EEF’s Growth Campaign continues
to press for a clearer vision from
the government about the kind of
economy it would like to see and
concrete measures to maximise the
role of manufacturing within that.
We’ve made progress in a number
of areas.
Another key factor in the
competitiveness of UK
manufacturing is the regulatory
environment, particularly
employment regulation. The
Business Secretary announced
significant and welcome changes in
this area at a speech made at EEF
towards the end of 2011.
The economic story of the first
half of 2012 has been that of
great and continuing uncertainty.
Official figures show that the UK
has slipped back into recession,
while the continuing trials and
tribulations of the eurozone have
created a potentially difficult
backdrop for UK business.
Accessing Finance remains a key
concern for many of our members
and EEF’s on-going lobbying on
these issues, including our regular
high-profile Credit Conditions
Survey, has helped to keep
the pressure on the banks and
contributed to the government’s
decision to bring forward a package
of ‘Credit Easing’, designed to
improve the availability of finance.
Despite these concerns, a mix of
private sector surveys continue to
tell a broadly optimistic story for
UK manufacturing, boosted in
particular by export inroads into
new and emerging economies.
We’ve made progress on tax too,
with the government agreeing
to EEF calls for changes to the
R&D tax credit, which should
help many of our members, and
announcing a further cut in the
Since then we worked with
government officials on
improvements to employment law
that should reduce the cost and
burden of employment tribunals.
This should also speed up the
process for collective redundancies
and make it easier for employers to
manage performance issues through
simplifying compromise agreements
and introducing protected
conversations that would allow
employers to discuss performance
issues without fear of triggering
legal action. At European level too
we continue to work to reduce the
Insights magazine | www.eef.org.uk/insights
INSIGHTS INSIGHTS POLICY AND REPRESENTATION 11
cost and burden of badly thoughtthrough legislation.
We’re continuing to argue against
unhelpful changes to the Working
Time Directive, while on health
and safety red tape, many members
will know that EEF has been
campaigning against the ElectroMagnetic Fields Directive – a
proposal which would restrict a
number of manufacturing activities
for little or no benefit.
Following extensive lobbying
by EEF, and working with our
European sister organisations, this
Directive has been postponed for
between 18 and 24 months, while
further analysis is undertaken.
Green and Growth
The cost of energy is a key input
for manufacturing and is often
affected both directly and indirectly
by efforts to tackle climate change.
Meanwhile, badly designed
change policy on energy policy.
At the Budget the Chancellor
announced plans to simplify the
CRC Energy Efficiency scheme – a
bane to many of our members.
Rt. Hon Vince Cable MP, Secretary of
State for Business, Innovation and Skills
environmental regulation, more
generally, can often be a major
concern and cost for our members.
For both these reasons, we’ve
been campaigning for a more
cost effective approach to climate
change and environmental
legislation, which recognises that
manufacturing has a critical role
to play in developing the ‘green’
goods and services of the future.
Our Green and Growth campaign
has already seen the government
bring forward a package of
measures for the energy intensive
industries at the end of 2011 to
offset the impact of climate
Over the next few months we
will be working with government
on this reform to achieve genuine
simplification of the scheme
or avoid it being replaced with
something potentially more costly.
This year’s key policy
achievements:
– Welcome reforms to the
R&D tax credit
– Reductions in Corporation Tax
– Reforms to Employment
Tribunals and Unfair Dismissal
– Postponement of the EU Electro-Magnetic Fields Directive
– Plans to simplify the CRC Energy Efficiency Scheme
Taking manufacturing’s message to the people that matter
Throughout 2012 we’ve had
a range of meetings and
interactions with some of
the critical decision-makers
affecting manufacturing. The
most high-profile of these
activities, our Manufacturing
Conference and Dinner, is
featured on pages 4 and 5.
But we have also met with the
Business Secretary, Vince Cable
MP, and his counterpart at the
Department for Energy and
Climate Change, Ed Davey MP;
together with senior members of
the Shadow Cabinet.
Insights magazine | www.eef.org.uk/insights
We’ve also hosted a number
of member dinners, attended
by guests such as the Governor
of the Bank of England and
the Permanent Secretary of
the Treasury.
And there’s more to come.
Later this year we will be holding
events for members at all three of
the main Party Conferences and
a Parliamentary award ceremony
for EEF’s Made in Britain
Photography Competition. You
can keep up to date with these
and all other activity by signing
up for our weekly e-newsletter,
Intelligence Briefing:
www.eef.org.uk/representation
EEF can also help you identify
whether you are eligible to claim
R&D tax credits through our
EEF Advantage in partnership
with Leyton.
For more information call us on
020 3051 2183 or email
[email protected]
12 INSIGHTS MEMBER NEWS
ROYAL RECOGNITION FOR
EEF MEMBERS
Nineteen EEF member businesses are 2012
Queen's Award for Enterprise winners.
Among the exemplary businesses
is Salford-based Mettler-Toledo
Safeline Ltd, which was honoured
in the International Trade category
for its outstanding export growth.
Rapiscan Systems, which won the
national EEF Business Growth
Award 2011, is also a 2012 Queen’s
Awards winner in the innovation
category. The global supplier of
security inspection systems won
the award for the development
of its Eagle Radiation Detection
solutions, which offer superior
threat detection in the most
complex of security scanning
environments.
Rapiscan Systems Cargo and
Vehicle Inspection (CVI) division
developed the device to identify
gamma or gamma neutron radiation
emitted from containerised or
vehicle-borne cargo.
The company manufactures high
performance metal detection
systems for global food, beverage
and pharmaceutical producers exporting more than 95% of its
products from its Salford base,
where it has a strong network of
local suppliers.
Mettler Toledo Safeline’s Metal Detection
Technology in use at a bakery.
The company’s metal detection
systems inspect over one trillion
food and pharmaceutical packages
per annum. That’s 150 packages for
every human being on the planet.
Judges cited Mettler-Toledo
Safeline’s strong brand strategy,
executed through multiple sales
channels, a commitment to
innovation and an expert support
team as drivers for our international
success.
The innovative technology
distinguishes between the materials
used in nuclear weapons, medical
radiation sources and naturally
occurring radio-active materials.
It senses such radiation and
automatically generates alarms
when materials of particular
intensity or significance are
detected. Rapiscan Systems also
won the Queens Award for
Enterprise in the International
Trade category in 2008.
EEF members are winners of Queen’s award 2012
THE QUEEN’S AWARDS FOR
ENTERPRISE: INNOVATION
2012
– ADEY Ltd t/a ADEY Professional Heating Solutions
– AmSafe Bridport Limited
– B&W Group Limited
– Baxi Heating UK Ltd
– Grainger and Worrall Limited
– Gripple Limited
– Pearson Engineering Limited
– Rapiscan Systems Ltd
– Siemens plc MR
Magnet Technology
THE QUEEN'S AWARDS FOR
ENTERPRISE: INTERNATIONAL
TRADE 2012
– ATB Morley Ltd
– Advanced Insulation Plc
– Kiveton Park Steel Limited
– Langtec Limited
– Mettler Toledo Safeline Ltd
– Millers Oils Ltd
– Nissan Motor Manufacturing UK Ltd - Sunderland Plant
– RAKON UK Limited
– Joseph Rhodes Limited
– Siemens VAI Metals
Technologies Limited
– Union Electric Steel UK
Insights magazine | www.eef.org.uk/insights
INSIGHTS MEMBER NEWS 13
GROWTH THROUGH
INNOVATION
Smart and innovative manufacturing is key to
success for two expanding EEF member businesses.
The electronic wizardry of Box
Manufacturing is supporting rapid
growth for the West Midlands
business.
standby power solutions. This will
enable the company to recruit six
new people to expand its existing
40-strong team.
The company has diversified
from a small business producing
telematic vehicle tracking devices,
into electronics subcontract
manufacturing and services, which
now accounts for 80% of business.
Turnover increased by 40% last
year and further growth of 20% is
anticipated this year.
PB Design provides a complete
service - from design through
production, testing, installation,
commissioning and maintenance.
‘Made in Britain’ is the company’s
mantra, with all supplies and
any sub-contract requirements
sourced locally.
Box Manufacturing’s electronic
capabilities support global industry
- from apps for Blackberry and
Android phones - to telematics
solutions and engine control
technologies for JCB - through
to automated toilet flushing
technology. The company was a
pioneer of LED technology, which
it is currently applying to a major
runway lighting project.
The company’s continuing
partnership with JCB goes back
to 2005 when Box developed a
telematic tracking device to capture
data on machine performance in
the field and includes the recent
launch of the LiveLink engine
control unit.
PB Design, based near Bristol, is
expanding manufacturing capacity
by 50 per cent to satisfy the
demands for its market leading
Insights magazine | www.eef.org.uk/insights
Its new Black Start Controller,
a microprocessor based control
system that reconnects power
in the event of supply failure, is
undergoing customer trials and is
expected to drive impressive future
growth.
Its technologies help ‘keep the
lights on’, including emergency
lighting back up for The Eden
Project and standby systems for the
London Underground.
PB Design
FIND FUNDING
Our Funding Finder service
www.eef.org.uk/members/
funding can help you unlock
your business potential.
You can now access finance
and grants both regionally
and nationally in three
simple steps.
Step 1: Add your funding criteria
Step 2: Find the funds,
Step 3: Access the detail.
Exclusive and free to members,
Funding Finder provides
information on each
opportunity, such as key
contacts, application forms
and information on how and
when it’s best to apply. You
can also register for e-alerts to
receive funding information
as soon as it is available.
EEF provides a range of
additional support services.
Please contact our Information
Line on: [email protected]
or 0845 250 1333.
MEMBER CONNECT
Join our free Member Connect
events, hosted by exemplar
companies, where you can
see and share best practice,
expertise and know-how.
Next event is at Siemens plc
MR Magnet Technology
on 10 October 2012.
Contact: 0845 293 9850,
www.eef.org.uk/events
14 INSIGHTS MANAGING CHANGE
HOW TO MANAGE
IN CHALLENGING
TIMES
Tough times call for tough decisions
and changes to the status quo,
but how do you keep your workforce
keen and willing when the economic
squeeze is on and change is required?
Insights magazine | www.eef.org.uk/insights
INSIGHTS MANAGING CHANGE 15
With powerful HR, employment
law and people management
support, EEF is always on hand to
help member businesses successfully
meet challenges such as pay
negotiations, restructuring and
changes to working practices.
will often call for new ways of
working. It's human nature to resist
change, so the onus is on leaders to
communicate what change means
for the company and individuals,
and to overcome that resistance
to change.
When times are tough, it’s not easy
to win-over employees or trade
unions, but with the right approach,
we can help you deliver what
every manager needs – a flexible,
productive and high-performing
workforce.
Cooperation
So if you are making tough
decisions, we’ll help you get them
right. We understand manufacturing
workplace dynamics better than
most and your EEF membership
offers a winning combination
– unparalleled expertise in
industrial and employee relations
plus profound know-how in
employment law. Be sure to contact
your local advisor for advice and
guidance when managing change.
Alternatively, you may find our
new free on-line resources useful at
www.eef.org.uk/change including
an on-line HR change assessment
tool. Over the coming months,
these resources will cover three
key change management areas:
Achieving Flexibility and Making
it Work; Improving Employee
Engagement; Performance & Talent
Management.
Cooperation is key, as underlined in
a recent EEF survey which showed
that 80% of manufacturers had
achieved the flexibility they needed
through a cooperative relationship.
Many more (94%) predicted that
cooperation would be vital to
business progress in the next three
years.
Changing working practices and
conditions, such as introducing
lean systems or altering hours, is
not easy, but the benefits could be
considerable. There are a range of
options available to managers, which
should be considered carefully in
response to company circumstances
or market conditions.
Changes to hours worked
Workforce Flexibility and Agility
Adjusting the hours your employees
work can boost productivity by
matching labour availability to
business demand. Overtime could
be used to respond quickly to an
unexpected situation but be aware
that it can be costly. It should only
be viewed as a short term approach,
particularly as most overtime
agreements may be voluntary.
Varying shift patterns through
annualised hours, banked hours
or compressed hours systems may
be a better long term solution to
achieving flexibility.
Fast changing economic conditions
call for fast response and that
For instance, annualised or banked
hours systems are helpful to
Writing for Insights, Jeff Neild,
National Head of Employee and
Industrial Relations for EEF, takes a
closer look at this topic.
Insights magazine | www.eef.org.uk/insights
businesses with volatile demand
patterns. If you have peaks and
troughs that are hard to predict, yet
create sharply fluctuating labour
demands, you could consider
reducing working hours in a lean
time and holding them in reserve
for a ‘return to usual’ scenario.
Compressed hours also help
to match labour availability to
fluctuating demand, although this
approach may be better suited
to industry sectors where those
fluctuations are predictable and
ARE YOU READY
FOR CHANGE?
Complete our online HR Change
Assessment Tool to see where
you stand against best practice
in change management. The
assessment will help you identify
what you do well and highlight
how you can improve.
Take the test at
www.eef.org.uk/change
16 INSIGHTS MANAGING CHANGE
your sIdE
gEt tImE on orkIng Hours.
cHangIng w
flExIbIlIty.
acHIEvIng
takE control
of cHangE
Ing tImEs
In cHallEng
new
the key to seizing In this
Being flexible is
a changing market. review
opportunities in
how to
you
show
will
document we
es’ working
r existing employe
and change you erns, to bring your business
patt
ands.
hours and shift
ging customer dem
in line with chan
regular. Typically, employees will
work fewer, shorter shifts in summer
and longer, more frequent shifts
in winter to match production to
demand.
In this way companies can step
easily from an eight or twelve-hour
production day to full 24-hour
capability, without having to bring
in seasonal labour.
Changes in workforce size
Ers.
manufactur
s support for & rEprEsEntatIon
al rElatIon
cy
mEnt – polI
and IndustrI
loymEnt, Hr y – lEarnIng & dEvElop
ExpErt Emp
sultanc
con
–
HIp
mEmbErs
HOW EEF CAN HELP
Log on to the EEF managing
change portal www.eef.org.uk/
change for help and guidance
on building flexibility into your
workforce.
You will find resources on a range
of issues, such as how to change
workers’ terms and conditions, how
to implement lean manufacturing
systems, and how to optimise
working time and reduce overtime
while managing absence.
Make the most of your
membership. Talk to your
Regional Director or Membership
and External Affairs Manager to
find out more about how we can
help you plan, prepare and deal
with change and access our
expertise in employee law
and HR.
Decisions to reduce or increase
the workforce can be vital to
maintaining flexibility. Many
manufacturers use temporary
workers on non-standard contracts,
however, those with short order
books are less likely to find
temporary workers effective in
managing their flexibility needs.
During a downturn, companies
can retain key skills and minimise
reductions in their permanent
workforces through a variety of
measures including: job-sharing,
multi-skilling, voluntary unpaid
leave, short-time working and
tighter control on pay.
Varying production practices
Many companies operate at multiple
sites and have collaborative working
relationships with their supply
networks. This allows them to move
production across their facilities in
response to demand.
One size doesn’t fit all
The measures manufacturers choose
to achieve day-to-day flexibility
are influenced by their size and
sector. There is no ‘one size
fits all’ approach. In today’s
manufacturing climate, change
management can be tough. It is
not easy to win-over employees or
trade unions when the economic
squeeze is on.
With the right HR approach and
collaborative management style,
much can be achieved and hostility
and litigation can be avoided.
Resource centre
Our online resource centre
www.eef.org.uk/change is a
one-stop-shop for all aspects of
managing change. We’ve started
with resources for workplace
flexibility, but will be adding lots
more expert guidance over the
coming weeks and months.
From July 27th, you will be able
to access resources on employee
engagement, which is the second
phase of our programme.
This information on improving
employee relations will include
case studies, advice on negotiation,
pay benchmarking information and
details of TUPE consultation.
With the facts to hand and the skills
to negotiate effectively you’ll be able
to engage your employees fully in
your business objectives. There will
also be specially tailored events.
From September you’ll find free
downloads on performance and
talent management, the third phase
of our programme.
Our guidance on performance
management will include toolkits
and tips, while our resources on
talent management will help your
succession planning, recruitment,
and retention of your most valuable
employees.
INSIGHTS APPRENTICES 17
YOU'RE HIRED! APPRENTICE
RECRUITMENT
Peter Winebloom, EEF Apprentices and Skills
Director, advises on the latest developments in
apprentice recruitment.
Demand is increasing from
employers wanting to take on
apprentices, in some cases for the
first time. This will help fill skills
needs both now and in the future.
The replacement of apprenticeship
contracts with apprenticeship
agreements makes it easier to
employ apprentices as it makes the
liability for breach of contract less
onerous.
Other developments include the
raising of the participation age in
education and training to 18. It
will affect those who turn 17 in
the 2013 academic year, but young
people can also choose work-based
learning, such as an apprenticeship;
or part-time education or training if
they are employed, self-employed or
volunteering for more than 20 hours
a week.
Although the apprenticeship route
remains wide open, employers may
find it more difficult to recruit when
faced with subtle pressure from
schools for students to stay on.
The other change affecting
employers in England is the
proposed introduction (from the
2013/14 academic year) of 24+
Advanced Learning Loans, which
will replace current government
funding. These will apply to those
aged 24 + studying at Level 3 and
above, including Advanced and
Higher Apprenticeships.
EEF RECRUITMENT HELP
EEF has worked with thousands
of companies to help them recruit
and train the best young people.
We can help:
– Identify skills gaps and
prepare job descriptions
– Advise on wage rates/salaries and employment contracts and government funding
– Post your vacancy for free -on the National Apprentice
Vacancy Matching Service (NAVMS), an online resource used in UK schools and careers offices
– Sift CVs and set up selection testing, assessment and
interviewing
Further information:
www.apprentices.co.uk
0121 707 1414
RECRUITMENT
MADE EASY
Conductix-Wampfler,
based in Salford, Greater
Manchester, recognised that
recruiting apprentices is a
very different process and
sought help from EEF when
they decided to hire their
first apprentice.
Engineering Manager Greg
Roughley, explained: “We
needed expert advice and
turned to EEF for guidance
and direction.
They made the process
extremely simple; helping to
source and evaluate the most
appropriate candidates and
short list the ‘potentials’,
before introducing them to
us to go through our own
interview process.
"They took out so much of
the hard work because they
understood our business so
well. EEF’s experience was
essential throughout this
process and it saved me so
much time.”
“Our apprentice has
been nothing less than
enthusiastic, reliable and
also encouraging from the
company’s perspective. He’s
a breath of fresh air and I
truly believe people like
him are the future of
Conductix-Wampfler.”
18 INSIGHTS Leadership
MANAGING
LEAN
Lean thinking will help your business
make best use of smaller resources while
delivering bigger customer value.
Insights magazine | www.eef.org.uk/insights
INSIGHTS Leadership 19
lean and leadership:
eXpert advice from eef
take control of change in challenging times
Being flexible and lean is the key to seizing
new opportunities in a changing market.
In this document we will show you how to
use lean to create more value for customers
while using less resource to achieve it.
Business growth and Business improvement – memBership – consultancy
– learning & development – policy & representation
The best form of lean links waste
reduction with increased customer
value and employee safety and
engagement - whether that’s in the
factory or enterprise wide.
Lean can benefit both customers
and have a positive cultural effect
as it creates a cross-discipline team
environment and a common
language for improvement.
Some companies struggle to
implement lean, while many find it
difficult to sustain. Sometimes this
is because it’s seen as a quick fix for
a single problem, rather than a new
culture where everything revolves
around delivering value to the
customer and eliminating anything
that detracts from that value.
Such a cultural shift often calls
for new forms of leadership and
management, where there is a
horizontal flow of command,
rather than traditional vertical line
management.
Insights magazine | www.eef.org.uk/insights
At the heart of a lean business is a
culture of continuous improvement,
requiring an environment of
effective problem solving at all levels
and behaviours that support such
thinking.
The leadership challenge is to
look beyond the lean ‘tools’ and
to assess the gaps in systems and
organisational structure, while
fostering and embedding the right
culture.
EEF’s business growth, lean
manufacturing and leadership
consultancy, training and
networking events can help you
to lead your lean implementation
programme.
This can start with an audit or gap
analysis to pinpoint the best starting
point for your lean journey.
With our expertise in HR and
industrial relations we can also
guide you on strategies to win-over
employees or trade unions.
CONTACT US:
Find out how EEF can help you
deliver the skills and leadership
capabilities for your company's
continued success.
Contact Julie Brady on 0161 777
2511 or [email protected]
Download our training and
consultancy guide at
www.eef.org.uk/training
ACTION LEARNING
When your unresolved
problems, issues and
opportunities face deadlock,
Action Learning can help you
move forward. Action Learning
is a structured and dynamic
process whereby like-minded
people come together in small
sets to use their collective
power to solve problems that
have no easy answer.
Each participant presents their
own problem and the role of
the group is to question and
challenge to promote new
insights and move towards
resolution. “The process
of Action Learning can be
applied to many situations
and can produce lasting
results”, said Gill Hardy,
Learning and Development
Consultant at EEF.
“The issues and problems
that individual set members
work on can range from
an organisational project,
such as how to introduce
a new performance review
programme or how to engage
people in a continuous
improvement initiative, to
a personal development
challenge.”
20 INSIGHTS EEF ADVANTAGES
TOP TIPS FOR ENERGY COST
AND CARBON REDUCTION
How do you relieve the sting of energy price rises
and reduce your carbon footprint? Mark Alston
of EEF Energy Services offers expert advice.
energy broker, such as EEF Energy
Services, to monitor the wholesale
market for you and either find
opportunities to lock into prices at a
market trough, or manage a flexible
purchasing approach within a clearly
defined and robust risk management
strategy.
1. Make energy a board room,
not just a plant room agenda.
Set financial plans based on 15%
plus year-on-year increases in
power and gas unit costs through to
2020. Consider how these increases
will be mitigated through smarter
energy procurement and increased
efficiency. Implement an energy
and carbon strategy, considering
security of supply.
2. Develop a robust procurement
strategy and consider which
contract suits your business, whether
it’s a fixed, flexible or multi-site
agreement, a flexible capped-price
product, or combining purchasing
with others in an energy collective.
The volatility in wholesale energy
prices presents opportunities to buy
when prices dip, but equally a risk
of paying a premium during a peak,
especially if purchasing is left until
the last minute or in the months
leading up to the busy April or
October contract renewal periods.
Consider using an independent
3. Understand your consumption.
Knowing how you use your energy
is key to saving it, so ensure you
make full use of smart metering and
automatic monitoring and targeting.
A rigorous energy audit will involve
energy mapping - tracking energy
flows from meter to final point of
use to understand the energy lost
and consumed at each stage of the
manufacturing process and the
associated costs. This helps highlight
inefficiencies and opportunities
to reduce waste and track energy
reduction measures.
4. Implement energy saving
solutions. Building energy
management systems and energy
efficient lighting are clear starting
points that can provide rapid
payback on investment. On-site
generation, such as combined heat
and power and heat pump solutions
can be also be an attractive option
for suitable sites.
5. Take advantage of free EEF
contract renewal reminder
service to avoid being locked
into expensive ‘out of contract’
energy tariffs by failing to terminate
your contract in time. Some
suppliers require 120 days' notice
and failure to meet this deadline
can mean paying more than 50%
above current rates for as long as
12 months. Consider your options
well in advance of your contract
end date to provide time to research
the market and find the most
competitive contract.
6. Check your utility bills for
errors. Utility invoices can contain
inaccurate data, due to estimated
billing, meter faults and the
incorrect application of tariffs. It is
important to validate and approve
invoices to ensure they conform
with relevant supply contracts and
actual consumption. This can be
undertaken using analytical software,
linked to smart metering, or by a
good independent energy broker.
7. Don’t forget water! Consider
working with a specialist water
consultant, such as EEF Energy
Services, to highlight invoice
inaccuracies, such as incorrect
tariffs or further charges, such as
trade effluent disposal, that do not
accurately reflect the services being
provided. Limiting waste water is
also critical and you should map
exactly where water is being used
across your site to identify usage
and areas of waste.
CONTACT US:
EEF Energy Services is delivered
by independent energy
procurement and energy
management business ENER-G.
Contact: 01527 855 033,
[email protected]
Insights magazine | www.eef.org.uk/insights
BESPOKE ENERGY
MARKET TRACKER
The EEF Energy Service
Bespoke Market Tracker
is a new free service that
helps EEF members monitor
wholesale market prices
and identify when best to
purchase.
It provides an estimated view
on how much higher or lower
a customer’s next energy
contract will be - making a
direct comparison between
the cost of their current
contract and the probable
cost of their next renewal.
Gas and power prices varied
by about 20% in 2011 and
are predicted to increase
year-on-year. With energy
markets remaining volatile,
the free new service gives
businesses a weekly report,
using current wholesale
market prices to compare
their current contract price
with the predicted renewal
price.
Many businesses don’t
realise that a new energy
contract can be secured well
before the termination of
their current one. The Market
Tracker report provides you
with the specific intelligence
to fix contracts in advance at
the best possible rates.
To register for the free
service visit www.eef.org.uk/
environment-tools/energyreport
Insights magazine | www.eef.org.uk/insights
INSIGHTS EEF Advantages 21
NEW HEALTHY BENEFIT
Hospital Treatment Insurance, through EEF
Advantages, cuts the cost of private medical cover.
Costing from £5.37 per employee,
per month, Hospital Treatment
Insurance gives you and your
employees the reassurance of
knowing that should they need
non-urgent surgery, for example
knee or hip operations, that are
debilitating but not life threatening,
they can be treated quickly and
effectively in one of many hospitals
in the UK.
Hospital Treatment Insurance
provides non-urgent surgery and
medical procedures quickly and
easily, but does not cover surgical
procedures for cancer, heart
disease or emergency treatment
at which the NHS excels. It is
more affordable than full private
medical insurance - offering fair set
price premiums for all employees,
regardless of age or location.
No medicals are required, even
for employees with pre-existing
conditions (although exclusions
may apply), and no excesses are
payable. The treatment packages
and all paperwork is handled
by Westfield Health. The new
service can be purchased as a
standalone benefit, or combined
with the existing EEF Health Cash
Plan, which provides fast access
to scanning facilities; cash back
towards the cost of dental, optical
care, dental trauma and therapies,
such as physiotherapy, acupuncture,
homeopathy, osteopathy and
chiropractic treatments.
COMING SOON
EEF Members will soon be able
to offer two NEW salary sacrifice
benefits to employees:
1. Mobile Phones (handsets with or
without tariffs) incl. Apple iPhones.
2. Computers (units and
accessories) incl. Apple iPads
and MacBooks.
Being HMRC compliant, both
schemes make technology purchases affordable whilst delivering savings of 18 – 42% to the
employee, depending on their tax
rate level and 5-13.8% of the
Employer’s National Insurance and
reduced Class 1A contributions.
More information on EEF
Advantages: contact John Planck
[email protected]
22 INSIGHTS HEALTH, SAFETY AND ENVIRONMENT NEW LOOK FOR ISO14001
EEF is inviting members to have their say on proposed changes.
Proposed changes will align the
standard more firmly to top level
business strategy and could have
a significant impact upon UK
manufacturers, who may require
additional skills and resources to
manage compliance.
The worldwide environmental
management standard ISO14001
is under review, with major
changes likely to apply from as
early as 2014. Greg Roberts, EEF
Environmental Consultant shares
some of the potential revisions
and invites members input.
Nearly a quarter of a million
organisations worldwide are certified
to the ISO14001 standard, which
is rapidly becoming a ‘must have’
certification for the manufacturing
community, driven by the
requirement for legal compliance,
cost reduction and by increasing
customer demand.
We know that the standard will be
one of the first to sit within a new
high level common framework for
all management system standards,
which all (including ISO 9001
quality management and ISO
27001 IT security) will eventually
follow. This will make it easier for
companies to integrate systems.
The multi-national ISO Technical
Committee is considering the 24
recommendations suggested by
an ISO working group. These
include; sustainability and relevant
sustainability standards; life cycle
considerations; making ISO14001
part of the core organisational
strategy; including specific
performance indicators, and the
use of maturity matrices to
demonstrate incremental
improvements to the EMS.
Perhaps the biggest change is that
the process will be more outward
looking, with a need to determine
the requirements of ‘interested
parties’ and the ‘internal and external
issues’ facing the organisation.
There will also be a much
larger requirement for external
communication. Top management
will be required to show ‘leadership’
and that the EMS is ‘compatible
with the strategic direction of the
organisation’. It is clear that the new
look standard will require an active
environmental management system
that is fully integrated into business
operations, strategy and the
supply chain.
CONTACT US:
For help with ISO14001
implementation and more contact
[email protected]
ONLINE LEGAL REGISTER
EEF is preparing an online
Legal Register that will cut the
cost and time of complying
with Environmental and
Health and Safety legislation.
In particular, this will support
the implementation of
management systems,
particularly those certified to
ISO 14001 or OHSAS 18001.
EEF’s unique position provides
us with a direct link to the
EU, government offices,
associated support agencies,
local authorities and the wider
international trading arena.
This allows us to provide
updates on legislatives changes
and the latest information on
forthcoming legislation and
consultations on existing
legislation.
To find out more about
the online Legal Register
contact Dan Wellington:
[email protected]
Insights magazine | www.eef.org.uk/insights
INSIGHTS HEALTH, SAFETY AND ENVIRONMENT 23
REACH – MANAGE THE RISK
REACH, the European Union’s chemicals Regulation, has repercussions
beyond the chemical industry for the 'downstream users' of chemicals.
It affects those that use or import
substances and materials as well
as those that assemble imported
components into products sold
to the European market. Such
‘downstream users’ have specific
legal obligations and face specific
business continuity risks. The
regulation, which aims to ensure a
high protection of human health
and the environment from chemical
substances, obliges manufacturers of
substances and products to assess the
risks posed from their various uses
and detail how to use them safely.
It puts the onus on businesses to
communicate potential risks through
the supply chain. If substances which
are considered potentially dangerous
are in products, customers (and
possibly the European Chemicals
Agency) must be advised.
Restrictions may be placed on the
use of some substances. In addition,
certain substances will require
explicit permission before they can
be used for essential uses and only
if there are no alternatives that can
be substituted. Fourteen substances
have been identified for bans and a
further 26 have been recommended
for future bans.
This includes some substances
commonly used within industry.
The European Chemicals Agency is
required to make recommendations
for further bans at least every two
years.
Potential risks include:
–Disrupted supply due to market withdrawal of substances
HEALTH AND SAFETY ROADMAP
Health and Safety struggles to command the
respect it deserves - both in the board room and
the shop floor. How do you ensure that employee
safety remains top of the agenda?
How do health and safety managers change the
perception of their role from ‘cost’ to ‘benefit’?
How do you demistify and translate compliance
complexity into insights that work in real life?
You can find answers to all these questions within
our FREE health and safety resource centre at:
www.eef.org.uk/hscampaign
Insights magazine | www.eef.org.uk/insights
–Product disruption if substances subject to restrictions or bans
–Reputational damage due to compliance failure
–Loss of business and threat of fines and prosecution if legal requirements flouted.
–Quality issues if suppliers substitute substances without informing downstream users
and customers
Help with REACH
We can help you understand your
obligations under REACH.
Visit: www.eef.org.uk/reach for
full information and to sign up to
our Substance Alert service.
EEF Skills
Survey 2012
EEF's last Skills report, Learning
to Change, was produced in 2006.
Since then the skills landscape
and economy has undergone
considerable change. One of the
consequences is a severe reduction
in public funding for training and
skills at a time when firms in all
sectors report acute skills shortages.
The 2012 EEF Skills Survey will
identify the current investment in
skills and training by manufacturers,
as well as providing an evidential
basis for policy recommendation
to Government. We encourage
members to take part and reflect
your views. Look out for our
survey in July.
ADVANCED ENGINEERING SHOW
EEF is again proud partner of the 2012 Advanced Engineering UK show
on the 7th and 8th November at the NEC, Birmingham. The show brings
together some of the UK's highest-growth advanced engineering sectors
under one roof – Aero Engineering; The Composites Engineering Show;
UK Plastic Electronics and Automotive Engineering.
For more information contact [email protected]
TELL US YOUR NEWS
INSIGHTS is a member
magazine, so tell us what topics
and advice you want us to cover
in the next issue. Share your own
story or viewpoint with fellow
manufacturers. Please email your
photos, story ideas, interview
topics or event listings to
Jo Britton by 30 September 2012.
Email: [email protected]
FOLLOW US ON:
@EEF_Insights
15% OFF CONFERENCE/VENUE HIRE
EEF members are eligible
for 15% discount at our
award-winning conference
venues in Bristol, Sheffield,
Warwickshire and London.
Whether you need a high calibre
meeting room, the perfect space
for training or team building, or
a prestigious location for a top
notch conference, we have the
venue for you and our friendly,
hospitable staff make you feel
like you’re a welcome guest,
rather than another delegate.
CONTACT YOUR
REGIONAL DIRECTOR
To find out how you can get more
involved with EEF, by joining
your Regional Advisory Board,
or by participating in our policy
campaigns; or if you have a query
about your EEF membership:
ANDY TÜSCHER
Region Director, North
Email: [email protected]
Sheffield office:
0114 268 0671
Gateshead office:
0191 497 3240
RICHARD HALSTEAD
Region Director, Midlands
Email: [email protected]
Birmingham office:
0121 456 2222
Melton office:
0166 448 4270
JIM DAVISON
Region Director, South East
Email: [email protected]
Hook office:
0125 676 3969
Cambridge office:
0122 349 5400
PAUL KNIGHT
Region Director, South West
Email: [email protected]
Bristol office:
0117 906 4800
DAVID OST
Region Director, North West
Email: [email protected]
Warrington office:
0161 777 2500
PAUL BYARD
Director, Wales
Email: [email protected]
Bridgend office:
0165 664 1790
Find out more:
wwww.eef.org.uk/venues
Insights magazine | www.eef.org.uk/insights