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Engineering something special in the UK

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“This Government believes technology-based innovation will be one of the key drivers of the private sector-led economic growth that Britain so urgently needs,” Prime Minister David Cameron has stated. Whatever your political position, it's difficult to deny that Britain offers something special when it comes to technological skill and the ability to develop specialised engineered solutions. 

With our world-class universities and depth of engineering talent, the UK should play to its strengths and use its skills to export specialised engineering solutions to the fastest emerging global markets. Capitalising on the great UK science and technology knowledge base will enable Britain to compete in these emerging markets and provide an exciting economical alternative to our over-reliance on the public sector.

And British companies who are not subject to the decisions of a multinational owner can be strong here because they can dedicate their efforts to specialised solutions and build confidence in their customers, without being forced to switch allegiances by their owners. Using expertise that has been built up over time, it is easier for such companies to address the economic pressure to reduce energy consumption, a key driver in all current and future technological development, without compromising performance.

Purite is dedicated to providing specialised solutions in healthcare, laboratory and industrial water purification and has used its expertise to expand its laboratory export business in emerging global markets. In 2012, Purite has shipped 51 laboratory water purification systems to one of the largest Malaysian Universities, followed by a supply of 75 x Select Fusion units for a new project at a prestigious University in the United Arab Emirates.  

Our strength as a trusted and valued supplier flows from our dedicated expertise and our ability to provide innovative solutions; as differentiators in the marketplace, those qualities are hard to beat.

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Shiver me timbers, a positive manufacturing story

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With an increased online presence, Timberform hopes it will add an extra £1 million of sales this year, with a particular focus on boosting market share of the buoyant private education sector in the United Arab Emirates.

The specialist manufacturer of outdoor wooden shelters, buildings and play equipment benefitted from the support offered by the Manufacturing Advisory Service (MAS) to improve the functionality of its website.

Employing 50 people at its Foxwoods Industrial Park factory in Chesterfield, Timberform hopes the new campaign will result in turnover surpassing the £5 million mark for the first time since the company was taken over by Barnsley-based Metalliform just over a year ago.

Timberform’s General Manager, Jeremy Navrady commented:Timberform (Action P2).jpg

“We enjoyed a sustained period of growth in 2012 and currently provide a range of outdoor play equipment and buildings for a customer base of more than 1,000 schools across the UK.

“Our understanding of the education sector and the fact we can tailor existing products to suit specific requirements are both big selling points and we are one of the few companies in our sector to be FSC approved for all our timber.”

Navrady continued:

“One of the key aims for 2012 was to ramp up our marketing activity and this focused on transforming the website so that it helped us penetrate new markets and customers could also complete transactions online.

“We’ve been able to do this with the help of MAS, who provided strategic support and grant funding for us to team up with Blue Dolphin on the functionality of our site.”

Trading under the brand name Timberline, the company has already seen a substantial increase in traffic to the website, with many of the initial leads being converted into orders. Something Timberform hopes to further increase sales by exhibiting at the Gulf Educational Supplies and Solutions (GESS) Exhibition in Dubai for the first time in March.

MAS’ Specialist Adviser, Ian Davie picked up the story:

“The management team identified a number of barriers that were holding the business back, primarily the lack of a website that reflected the full scope of what it did.

“We sat down with them and made them aware of the grant funding available, which speeded up the project by probably six months. Going forward, we are continuing to provide on the ground support and access to experts that can make a positive difference to its performance.”

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Retaining employee skills to be a priority for 2013

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As the organisation responsible for improving skills across the UK’s 132,000 wealth-producing engineering and manufacturing businesses, Semta is using 2013 to address skills gaps in the supply chain, recruiting new apprentices and graduates, and helping employers in the UK to access the almost £340 million funding available to them.

 Semta’s Chief Executive, Sarah Sillars OBE commented:

“Semta is ideally positioned to offer advice and coordinate employers and sector organisations that can work in partnership and win funding to ensure employers’ skills needs are met. The economy is forecast to return to growth in 2013 and Semta will be at the forefront, leading the charge on skills that provide a ROI.

“Organisations in our sectors typically deliver £20,000 per employer more in Gross Value Added than the overall national average and therefore have a critical role to play in delivering economic recovery. So our role, in ensuring that the right skills are in place, will be a huge factor in the success of engineering and manufacturing in 2013.”

Semta predicts that the UK will require more than 82.000 scientists, engineers and technologists by 2016 to take maximum advantage of growth opportunities and lessen the impact of skills lost through retirement. It also predicts that more than 360,000 of the current technical workforce have qualifications currently below world class standards and would benefit greatly from being up-skilled. 

Sillars continued:Sarah Sillars OBE.jpg

“Semta has made a real difference in 2012, helping advanced manufacturing and engineering employers to recruit apprentices and graduates, upskill the supply chain, increase higher level skills and promote the development and retention of women.

“In the coming year we will help tackle the “lost generation”, by showing young people and their parents and advisors the fantastic career opportunities available in manufacturing and engineering. And we will work with employers and partners to ensure that these important sectors get the funding needed to develop sustainable skills solutions.”

The Chief Executive concluded:

“The New Year is always a good time to get your business planning right, so any manufacturing or engineering employer who needs skills support to boost business in 2013 should act now and contact Semta.”

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Anatomy of a sign

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An interesting look at something many of us see everyday in cities around the world, but never give much thought to. The story of the small team of 22 men and women at the DOT Maspeth Sign Shop, responsible for designing, fabricating, replacing and maintaining the 1+ million street signs across all five boroughs of New York City, is revealed here by filmmaker Robert Hooman.

60 Years of the Barcode

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Written by Jörk Schüßler, European Marketing Manager for Citizen Systems Europe

Once upon a time, American science graduate Norman Joseph Woodland was sitting on a beach, doodling dots and dashes in the sand. On his mind was a plan to create a product labelling and scanning system for the supermarket checkout using a dot-dash, Morse-style code.

However, when Woodland extended his dots and dashes into long lines with the tip of his finger he hit upon a much more easily readable design that was to become one of the most familiar images of the modern world: the bar code.  

Woodland and fellow science graduate and research partner Bernard Silver received their patent for the code on 7 October 1952 but with the electronics revolution still some way off, the concept saw little product development for many years.

However, by June 1974, the first UPC (Universal Product Code) scanner was installed at a supermarket in Ohio and the first commercial product was scanned - a packet of Wrigley's Juicy Fruit Gum.

With the arrival of the microchip, the available technology at last matched the ambition of the concept and the bar code system was ready to take over the world. Indeed, throughout history, advances in technology have led to many interesting developments for the bar code. 

For example, the imminent launch of the GS1 DataBar code, which will be rolled out as a global standard by 2014, will allow more information to be printed on smaller labels. This will benefit providers of small or irregularly shaped items that are not large enough to accommodate a traditional bar code. 

The latest development of the bar code is the QR (Quick Response) code, that small square containing dozens of tiny black and white shapes that seemed so alien only five years ago but which now, like the bar code, has spread worldwide.

The QR code has sparked much creativity; the company Blue Marble has even offered businesses the opportunity to transform their rooftops into billboards containing QR codes and thus promote themselves via leading navigation applications like Google Earth

It’s rather fitting that this new development in the bar code can be seen from above, just like that first bar code that Norman Joseph Woodland, who passed away recently, traced in the sand all those years ago.

 

Citizen Systems Europe
Citizen Systems Europe operates from locations throughout Europe covering the EMEA region. It offers a wide range of printers for industrial, retail, healthcare and mobile applications specialising in label, barcode, portable and point-of-sale printers.  In each case, the company’s products are sold and supported by a network of specialised partners.

European Marketing Manager for Citizen System Europe.

Citizen Systems Europe, 643 - 651 Staines Road, Feltham, Middlesex, TW14 8PA. 

Tel: 020 8893 1900. Fax: 020 8893 0080. 

Email: joerk.schuessler@citizen-europe.com

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Tablets rugged enough to survive industry demands

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Panasonic designed the Toughpad range to meet the growing demand for purpose-built tablets that feature the latest functionality, yet can withstand the rigorous demands of engineers and technicians out in the field.

Rugged and Slim Windows 8 Toughpad

The FZ-G1 is Panasonic’s first rugged Windows 8 Pro tablet, specifically designed for workers who spend much of their time either within or from vehicles at job sites.

Weighing only 1.1kg, the tablet offers two-way touch input via its capacitive multi-touch screen and digitizer pen and combines extra wide viewing angles, strengthened glass and a Full HD screen.

Marketing Director of Panasonic Computer Product Solutions, Jan Kaempfer stated:

“We believe the FZ-G1 sets the new benchmark in the market for outdoor screen visibility. This combined with the latest features of Windows 8 Pro and Panasonic’s experience of making rugged devices with proven TCO, users will experience a new freedom of fully integrated workflows.”

The FZ-G1 can operate for up to eight hours on its standard 6-cell battery, or up to 16 with an optional 16-cell alternative. Front and rear camera with dual flash capability allows clear document, asset or site photos, regardless of light conditions and comes with 4GB RAM and 128GB SSD as standard, with an optional 256GB SSD.    

7” Android Toughpad

The JT-B1 is Panasonic’s first ergonomically designed, rugged 7” Android tablet, combining the power of Android 4.0 with Panasonic’s legacy of rugged mobile computing devices.  

Weighing 544g, the capacitive 7” display offers high visibility and low reflection, with the dimpled, concave surface aiding one-handed use, supported by a back-fitted hand strap doubling as a carry handle.

Fitted with a front and rear camera, the device can easily handle detailed documentation and image capture, and comes with 1GB RAM and 16GB Flash storage.

The open interface of Android allows 3rd part developers to custom-design specialist peripherals and accessories for the tablets such as barcode readers, payment devices and smartcard readers, for a fully-customisable experience.

In the UK, the Toughpad FZ-G1 will be available from official distributors and Panasonic partners from February 2013, priced from £1,582 plus vat for the Standard model and £1,730 for the 3G version. The JT-B1 Standard model will be £591 and the 3G version £706 (all prices exclude VAT)

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The power of testimonials on your website

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Written by Kate Webster

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A good reputation and loyal following is imperative to the ongoing success of your business. It’s no secret that your customers tend to believe what their friends, family and online reviews tell them.

“A recent survey by Chicago marketing firm Ryan Partnership found 36 percent of 8,000 shoppers polled used online reviews and recommendations this year, up from 12 percent two years ago,” reported FamousBloggers.net.

Because of this, positive testimonials on your website can be a powerful tool for gaining new customers and increasing sales. If you have a good relationship with your clients, embrace their satisfaction with your service and use their good words to boost your business.

Here are some examples of ways you can use testimonials on your website and benefit:

Help Build Trust

Often customers are confronted with too many options when looking for a product or service; making it difficult to determine what’s trustworthy and what’s a scam. Including testimonials on your site will put your potential customer at ease and assure them of your product or service quality.

  • Be sure to display the client’s first and last name (or at least last initial), city and state, and their business name to increase credibility. Also consider using a thumbnail picture so that the potential client can better relate to the satisfied customer
  • Make sure your testimonials sound natural. Be sure to use the client’s own words, but it should still sound cohesive and conversational

Types of Testimonials

Testimonials come in a variety of forms, all of which depend on who the person is. Usually, the greater authority the individual has, the more credibility and attention their testimonial is given.

  • Expert opinions are great if you work in a specific and competitive industry. If you have access to an expert, or someone who is respected for their extensive work in your field, a testimonial from them could be very effective. Be sure to include their credentials or business affiliations
  • Celebrity testimonials (endorsements) can be very effective for swaying public opinion, as people tend to imitate the trends and acts of their favorite social figures
  • Customer testimonials are from any customer who is happy with your service. It’s important that you don’t underestimate the power of their opinions. Clients tend to relate to others from similar demographics as them, and may find the opinion of someone in the same situation even more valuable than that of a celebrity

Use Them Effectively

It may seem fairly obvious that testimonials can be beneficial for business, but using testimonials to your advantage is not always easy. You want to be sure that you include all of the essential information, yet avoid being too aggressive in your quest for credibility.

  • When asking for testimonials from clients, only ask those who you formed a particularly strong connection with. Be a good judge of character when deciding who to approach for a testimonial and which customers you might want to skip
  • Don’t overwhelm your homepage with lengthy testimonials. Overcrowding your page with exaggerated pitches and reviews might come off the wrong way, so instead consider featuring the best testimonial (with a “read more” link) on your homepage, and then design your website to provide an option in your menu where the rest can be found
  • Be sure to keep collecting them as you go. Adding new testimonials is a great way to keep your webpage updated and continue to display the quality of your service

Reviews on a site can boost conversion by 20 percent. If you are providing a quality service and maintain good relationships with your clients, use their kind words to your advantage and include them on your website. If used correctly, testimonials can be a very powerful tool in gaining the trust of potential customers and informing them of the benefits of your service.

Kate Webster writes for lead generation resource, ResourceNation.com. She focuses on a variety of topics including Marketing, Human Resources Procurement and Software.

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Has the electric vehicle run out of juice?

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Surveying 200 auto-executives from over 30 countries, KPMG found the biggest barrier to EV sales to be the cost of batteries and concerns surrounding recharging the vehicle. Over 60 percent of participants stated consumers wanted their vehicle to last as long as possible, pointing towards a need for mature and sustainable technologies.

Responding to this, auto manufacturers say they plan to optimise the petrol engine further and increase investment in hybrid plug-in fuel systems over the next five years.    

KPMG’s UK Head of Automotive, John Leech explained:

“There is an increasing realisation that the petrol engine gas further scope for optimisation. This is quite a turnaround in direction and a sign that some of the newer technologies are taking longer than expected to emerge.

“This will benefit the UK, which is the second-largest manufacturer of petrol-engine-powered cars in Europe and especially UK suppliers of turbochargers and direct-injection petrol-engine components.”

Leech went on to state how, “it is a hugely transformative time for the global auto industry.”

 “In the past, automakers concentrated on just producing petrol-engine cars, now they must cope with a range of propulsion technologies, new trends such as car sharing, internet connectivity and the growing significance of emerging markets.”

“A critical consideration that the industry and public sector must address is when and to what extent an affordable infrastructure will be in place to address the recharging requirements of large numbers of electric vehicles or refuelling requirements of hydrogen-powered cars in the future.”

Leech concluded:

“The changing views on pure hybrids, plug-ins, fuel cell and battery-powered vehicles reflect the uncertainty as to which will be the dominant technology. In the short term, the individual driver is likely to prefer a hybrid, whereas urban fleets may opt for electric cars. However, it seems that pure electric vehicles will not prevail, at least in the next decade.”

The main findings of the survey were:

  • Enthusiasm over electric cars wanes, with petrol-engine-powered cars and hybrids set to dominate over the next decade
  • Fuel efficiency is the number one priority for cash-conscious consumers
  • Brazil, Russia, India and China (BRICs) market share predicted to grow to 50 percent, with 4x4s the fastest growing segment
  • Car sharing or ‘pay on use’ could be the answer for growing urban areas, and an opportunity for new players
  • Emerging markets trend towards upscale vehicles, the reverse for mature markets
  • Traditional dealership model under threat as online activity grows

The report in its entirety can be downloaded here

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An extended AGE of apprenticeships

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Originally only offered during the 2012/13 financial year, the UK government’s Apprentices Grant for Employers (AGE) of 16-24 year olds is worth £1,500 and is available for those businesses with fewer than 1,000 employers who wish to take on an apprentice.

The extension is thought to have been brought about by the overwhelmingly positive response from employers the scheme has garnered, with businesses now able to claim a grant for up to 10 apprentices.

Business Secretary, Vince Cable commented:

“I know it can be a big decision for busy, small companies to take on an apprentice. Employers may be concerned about the time recruitment and training will take, and anxious about how it will work.

“So the £1,500 grant is a token to acknowledge this and thank employers. I hope many more people will take us up on our cash incentive to grow their business, and train up the workforce of the future.”

Chief Executive of the National Apprenticeship Service, David Way added:

“We know that many businesses believe Apprenticeships deliver the skills needed for growth, so we are delighted AGE 16-24 has been positively received by employers for helping them to do just that.

“Apprenticeships come with a guarantee of quality, giving young people a job with training, and are proven to deliver a significant return on investment, so this really is a win-win initiative for employers.

“There has never been a better time to recruit an apprentice, so I hope more organisations will look at how they can benefit from this grant over the coming 12 months and reap the rewards of a more motivated, skills and qualified workforce.”

The announcement coincides with the start of a new nationwide radio advertising campaign this week aimed at encouraging more employers to take on apprentices and to highlight the availability of AGE funding.

David Barlow, Training & Development Director at Barlows UK, one of the businesses which features in the campaign, summed up the scheme:

“Apprenticeships provide a great opportunity to bring enthusiastic young people in to a business and train them with the skills that exactly meet the organisation’s needs. Apprentices are a true asset to our workforce and I passionately believe more employers should hire them.”

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Med-Tech Innovation Expo UK 2013

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For the first time ever, the UK will play host to the only exhibition dedicated to the medical device manufacturing sector, Med-Tech Innovation Expo UK 2013.

MTI Expo UK will focus on the research, design, development and manufacture of new and next-generation medical devices, bringing together parties involved in every facet of the sector: OEMs, clinicians, support and development agencies and investors, as well as the supply chain service and product companies.

MTI Expo will combine an exhibition, showcasing some of the leading supply chain companies and a variety of show floor seminar sessions, in tandem with a high level, two day conference that will address some of the latest issues and topics affecting the industry today and in the future.

Arising from the UK’s burgeoning medical device sector, the Expo will provide an ideal platform for facilitating essential networking and furthering business opportunities.

Some of the topics to be covered include innovative materials, developing technologies, medical electronics, packaging and new product development case studies; with many world-renowned companies, such as 3M, Ensinger UK, IBM, Instron, KNF Neuberger, Steripack and Synergy Health already confirmed to exhibit.

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A reliable benchmark for your legal department - Pt I

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Written by Rees W. Morrison, Esq.

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Many CEOs and CFOs know no clear way to tell whether their general counsel manages legal headcount, outside law firms, and budgets efficiently. Rather than anecdotes and assertions, senior executives would like answers based on objective numbers.

Reliable benchmark metrics are a great aid to both the general counsel and other senior executives.

If they conclude, for example, that they have to cut costs, metrics tell what expense level for legal is plausible. Or if it seems more legal staff or spending is needed, they suggest what level is typical. 

Good metrics provide shared, fact-based terminology to plan, budget, and discuss staffing, spending, and expectations for the in-house legal function.

Fortunately, it’s straightforward to benchmark any legal department in the manufacturing industry against peer legal departments. General Counsel Metrics, LLC offers far more law department benchmarks and participants (more than 1,000) than any other survey. And, its five releases a year cost nothing.

In 2011 the GC Metrics final release had 54 manufacturing companies from the US or Canada whose combined revenue was $123 billion. That large set of departments employed a total of 1,234 in-house lawyers. This article draws on that data.

What’s an example of an important law-department benchmark? 

If your company has two lawyers and your revenue is around $750 million, dividing 2 [lawyers] by 0.75 [billion dollars] gives 2.7 in-house lawyers for every billion of revenue. Lawyers per billion is one fundamental benchmark for law department managers since it gives a clear comparison with other companies on the revenue supported by your staff lawyers. 

Typically, companies in manufacturing report close to 2.5 lawyers per billion, so your department looks about normal.  Assuming you are in decent shape legally – nothing ugly and expensive like class actions, governmental investigations, or patent fights, for instance – your company’s management of internal attorney headcount looks about right. 

For someone to appreciate benchmarks they should feel comfortable with three important concepts: normalised figures, medians, and representativeness: 

Normalised figures

Good benchmark reports produce normalised results, usually as ratios. They don’t disclose absolute numbers. A normalised result divides one number (say, total law department employees) by a second (say, company revenue). 

This calculation puts all the companies on the same footing; companies with billions of revenue have scores of people in the legal department; smaller companies may have only one lawyer and a part-time executive assistant. 

But when you normalise their numbers, they can appear just the same on that ratio. For example, GC Metrics tells us that the manufacturing median is 4.8 total law department staff (lawyers plus non-lawyers) for every billion dollars of corporate revenue.

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Median

When a group of figures is sorted high to low, the median is the middle figure. If Lawyers per billion of a group of nine law departments is 1, 3, 4, 5, 7, 7, 8, 9, and 19, the median is 7. (Note that the average of those numbers, 9, is much higher than the median because it is skewed by the outlier department with 19 lawyers). Medians are more reliable than averages because they aren’t biased by one or two extremely high or low values.

According to GC Metrics, the median is 2.5lawyers for every billion dollars of revenue among North American manufacturing companies. The ratio of support staff in the legal department to practicing lawyers is incidentally around one lawyer for every one support staff, i.e. secretaries and paralegals.

Representativeness

The companies that are the source of the metrics need to be numerous enough and similar enough to your company for the benchmark results to be convincing. Without a plausible comparator group, sceptics will dismiss comparisons.

In addition, similarity of the companies makes the findings more applicable, defensible, and accurate.  Industry-based benchmarks provide much more insight than benchmarks based on other characteristics, such as company revenue, employee numbers, or lawyer count. Those in the same industry face generally similar legal challenges and so require comparable legal activity.

Sweet sound of manufacturing success

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Designing and manufacturing a range of innovative hi-fi products at its UK-based facility, Rega Research has experienced booming growth in recent years, with turnover increasing by 50 percent to £6 million.

The award-winning company recognised the need to implement a MRP system and benefitted from the support offered by the Manufacturing Advisory Service (MAS), as Rega Research’s Accountant, John Tozer explained:

“Demand for our hi-fi equipment has partly been fuelled by people, including the younger ‘iPod-generation’ who have discovered that listening to music on our equipment sounds better than anything they have ever experienced before.

“Previously, we had relied on spreadsheets for our stock control, but needed to introduce a more sophisticated system to help us to deal more efficiently with the increase in orders.

“The MRP is still a work-in-progress, but we are already reaping the benefits, including being able to ensure we hold correct stock levels of crucial parts and safeguarding against tying up money in surplus stock.

 “MRP is also playing a vital role in the capacity planning of production, which allows us to provide better feedback and information on delivery dates to our customers.

Throughout the endeavour, Tozer worked closely with MAS Advisor, Barrie Hughes, who became somewhat of a regular to Rega’s facility while the system was being installed.Rega Research.jpg

The Accountant (pictured right) commented:

“Barrie was very encouraging and helpful from the first day he walked into the factory. The combination of his in-depth experience and insightful approach put everyone at ease straight away. He also ensured that all members of staff were fully trained and ready for the changes ahead.”

“When the current recession began to bite, many of our competitors battened-down-the-hatches, but we took a conscious and deliberate decision to do exactly the opposite. We hired new sales staff and brought out a range of innovative new products that paid dividends.

Tozer concluded:

“Continued innovation and providing quality, cost-effective products allows up to keep one-step-ahead of our competitors and has always been at the heart of our ethos. Bringing MAS in when we did was certainly the right decision.

“Barrie showed a genuine interest in our products and manufacturing techniques and we would certainly turn to the organisation again for advice and expertise in the future.” 

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A reliable benchmark for your legal department - Pt II

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Written by Rees W. Morrison, Esq.

To read the latest issue of Manufacturing Digital, click here

(In 2011 the General Counsel Metrics, LLC final release had 54 manufacturing companies from the US or Canada whose combined revenue was $123 billion. That large set of departments employed a total of 1,234 in-house lawyers. This article draws on that data.)

Roughly two-thirds of a typical legal department’s expenditures goes to law firms.  As compared to employees with their relatively fixed costs, what you spend on law firms varies more from year to year. 

The median in manufacturing is 0.15 percent for “external legal spending as a percentage of revenue.”  So, manufacturing companies in 2011 spent on outside counsel about $1,500,000 for every $1 billion of revenue. 

Each law department benchmark illuminates only one aspect of the efficiency question. All benchmarks can be manipulated.The company could fire in-house lawyers, and look good on Lawyers per billion but pay through the nose for costly lawyers in law firms. Or the company could bulk up inside, use law firms less, but total legal spend per unit of revenue might go out of whack. Individual benchmark metrics can be hydraulic, squeeze one down and another one may bulge up.

For this reason, the best measure is the broadest, “total legal spending as a percentage of company revenue.” Total legal spending consists of “external spend” added to “internal spend.”

Internal spend typically consists of three-quarters for compensation and benefits, including bonuses and equity awards, but also allocated overhead, IT charge-backs, facilities charges, travel, CLE, and other internal operating expenses. 

In 2011, the median of total legal spending ran at about 0.12percent of revenue. Keep in mind that “total legal spend” understates “total” because it excludes fines, settlements, and judgments. At the first quartile among manufacturing companies, the total-spend was .17 percent of revenue while the third quartile was .45 percent. 

One other figure is often evaluated, how much it costs per hour to maintain your internal lawyers.Since few inside lawyers track their time, analysts assume they could each charge 1,800 hours per year for services to their internal clients. GC Metrics tells us the median “hourly rate” they would have to charge to fully cover their internal costs is $190. Compare that rate to the overall effective billing rate you pay your main law firms and you make tangible the cost-savings of busy in-house lawyers.

Summary

Imagine a $2 billion manufacturing company based in the United States or Canada and in the middle of the pack on legal staffing and spending. According to the GC Metrics survey, it would have 4.9 lawyers and 9.6 total legal headcount, which would cost $2,400,000 internally. Each lawyer would have to “charge” $190.07 per hour for the department to “recover” these costs. This prototype would also spend $3,000,000 on outside law firms for a total legal spend of approximately $5.5 million. 

Where does your company stand?

Adjust for your size, since as companies grow their normalised metrics improve. Economies of scale operate here so bigger is better for legal costs and personnel numbers. Also, adjust a bit if your legal department is mostly based in a relatively low-cost or high-cost city. 

Law departments should calculate the corresponding figures back three or four years. Ideally, having done both the historical trending and the current comparison, you have an objective dashboard with which to evaluate aspects of the performance of your legal team.

If your company lags one or more of the medians for your industry, what can you do?

  • Hire good lawyers and keep them
  • Retain and manage law firms cost-effectively
  • Invest to prevent legal problems; use supportive technology
  • Focus on high priority issues
  • Know your client’s business inside and out

Law department benchmarks, such as those readily available from General Counsel Metrics, provide manufacturing companies with standard terminology and objective data. They give executives a shared basis for discussing the legal department’s headcount, cost, and performance – and suggest areas to work on and improve. 

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Manufacturers better able to offer funding than banks

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Some of the UK’s largest manufacturers have increased the amount of credit they provide to their customers by over a third since 2007. Credit worth almost £11 billion was provided in 2007 has increased to £14.9 billion over the last four years, according to research by LPM Outsourcing (LPMO).

The market leading provider of services to the asset finance sector suggests that the jump in lending has been partly driven by the need to increase sales to customers who have struggled to secure bank lending since the ‘credit crunch’.  

Business Development Director at LPMO, Ian Dennis commented:

“Lending conditions have been undeniably tough for the past four years, so manufacturers have had to step in and offer that credit themselves.

“Manufacturers are finding plenty of business customers keen to invest in new plant equipment, customers who wouldn’t be able to invest in new products to grow their businesses if manufacturers weren’t able to lend them the money.

 “A lot of commentators have been trying to encourage big business to help out smaller customer recession and these figures suggest they are.”

Many manufacturers have formalised methods of lending to their customers, many helping customers fund essential purchases through ‘Captive Finance Programmes’. Dennis continued:

“Most manufacturers have a thorough understanding of their customers and the re-sale value of their assets, so may feel that setting up an in-house lending solution is a very natural step.

“Captives are viewed as a key growth strategy among many medium and large manufacturers, as the margins at which the loans are made can by very attractive.

“Some manufacturers have been very successful in developing a profitable leasing business and the credit crunch has been a catalyst for the others to do the same.”

“The on-going reluctance of banks to fund means that manufacturers are now in an excellent position to expand their captive financing programmes. They can also help manufacturers offer their clients additional services, such as insurance and maintenance contracts on equipment they’ve sold.”

 The Business Development Director concluded:

“Efficient captives can be set-up reasonably quickly with the support of dedicated software and infrastructure. The benefits of outsourcing such arrangements are a proven solution when manufacturers wish to move quickly with the minimum of investment. These software solutions are now even coming within the reach of mid-tier and small manufacturers as well.”

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Investment pays dividends for UK manufacturer

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Part of the Midlands Assembly Network (MAN), a £200,000 investment has seen sales orders for the Printed Circuit Board assembly specialist at an all time high.

Using the finance to integrate an industry-leading MRP/CRM system, upgrade its pick-and-place machine, install a new Inertec selective soldering machine and purchase a new Ultravision AOI (Automatic Optical Inspection) machine for solder inspection.

This advanced capability has allowed SMT Developments to provide its clients involved in the marine, environmental, F1 and commercial sectors with greater accuracy, speed of turnaround and the flexibility of PCB population or a fully vendor-managed service.

Director of SMT Developments, John Rowley commented:

“Our growth has been due to a combination of existing products coming to maturity and a number of new business wins – the latter part of a targeted sales and marketing campaign.

“We have worked extremely hard to create partnerships with our customers so that we work with them to develop products that can be manufactured in the most efficient way possible and utilise high quality materials without adding cost.

“This has proven to be a very popular approach and has been instrumental in the 35 percent increase in sales we have enjoyed. The way things are looking, I would expect similar growth in 2013.”

Rowley added:

“We are constantly looking at ways where we can offer something different and our upgrade of the pick-and-place machines combined with the Ultravision machine gives us the opportunity to place and automate the full solder inspection of 0201 components.

“These parts are 20 thousands of an inch by 10 thousandths of an inch and there’s only a handful of firms across the country who will offer this capability in low volumes.”

The Midlands Assembly Network is made up of eight companies including Advanced Chemical Etching, Alucast, Barkley Plastics, Brandauer, FW Cables, PP Electrical Systems, Westley Engineering and SMT Developments.

Together they provide access to world class manufacturing in precision pressings, casting, etching, injection moulding, wiring looms, tool-making, PCB assembly and electrical control systems and assemblies.

The Director concluded:

“Being part of MAN has been a massive plus point for SMT. We’ve won new contracts that we are delivering with other members and have benefitted largely from attending so many exhibitions.

“The new website has just gone live so we are expecting a further increase in opportunities.”

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Do EU controls on hazardous substances REACH you?

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A survey by the manufacturer’s organisation, EEF has shown there is a worrying lack of understanding towards the full scope and significance of REACH, especially among smaller manufacturers.

The research reveals that 20 percent of companies believe the REACH (Registration, Evaluation and Authorisation of Chemicals) Regulation to be limited to chemical companies, with almost a third saying it isn’t important to their business.

However, the Regulation is gradually restricting the use of hazardous chemical and in certain areas enforcing a widespread ban, including several controlled substances which have been commonly used in manufacturing processes for many years.

The cost implications for businesses include evaluating and increasing worker safety, implementing controls on substances are used and identifying and integrating alternative substances where applicable.

EEF Head of Climate & Environment, Gareth Stace commented:

“REACH continues to be the ‘elephant in the room’ for many companies who are either unaware of the implications or still believe it is a chemicals-only issue.

“In contrast the regulations have serious requirements for all manufacturers who are facing either the restricted use or banning altogether of some substances.

Stace warned:

 “For many companies there is the very real risk of lost business if they are unable to advise their customers whether their products contain certain materials and, where they are, how their use is being monitored.”

 “Furthermore, if companies don’t plan for substance bans, it could prevent production entirely.”

The EEF Head concluded:

“When armed with the right information manufacturers are doing the right things – substituting substances that are of concern with safer alternatives.

“But we need to see government and European regulators and legislators to do all they can to raise awareness and make it easier for companies to understand the implications of it on their business.”

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Nissan Europe drive down operating costs in 2013

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By implementing Wax Digital web3 P2P (Purchase to Pay), the 3,000 employees of Nissan Europe will be able to raise requisitions electronically, ensure they are authorised and approved according to stringent corporate guidelines and issue approved orders automatically to suppliers.

This financial and procurement overhaul across Europe and beyond forms an integral part of its Nissan Power 88, a strategy through which the company aims to increase both its global market share and corporate operating profit   to eight percent by 2016.

The web3 solution is being deployed across 16 core territories Nissan has in Europe, both at its business units and manufacturing plants; supporting multiple languages and currencies and processing the 600,000 invoices produced each year.  

Nissan Europe’s Purchase Systems Development Manager, Barry Wilmer explained:

“We have had an ambition for a number of years now to move all our European operations to a common eProcurement platform that can transform our purchasing and finance processes for both our purchasers and suppliers.

“In Wax Digital web3 we’re confident that we’ve now found a system and a supplier than can improve the way we do business with our supply chain across Europe and drive significant process efficiencies, controls and savings.”

A sentiment shared by Nissan Europe’s Finance Process Control Leader, Michael Brook:

“Moving from traditional paper and email based purchasing and accounts payable processes to the Wax Digital web3 portal-based system will provide significant benefits to both Nissan and our suppliers.

“The functionality and controls that Wax Digital web3 provides covering new supplier set-ups, approvals, expenditure recording and reporting certainly look impressive.”

Selecting the web3 platform for its comprehensive features, flexibility, intuitiveness and ease-of-use, as well as Wax Digital’s expertise in integrating the system with SAP and mainframe back office systems.

Business Development Director, Wax Digital, Daniel Ball commented:

“We’re very excited to be working with another fantastic brand like Nissan. Everything about this project is big, from number of users, territories and suppliers to spend under management; so there are some great opportunities for process improvement and bottom-line savings.

“Intuitive user experience is critical to purchasing control and compliance – that is what web3 is all about.”

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EEF Manufacturing Conference 2013 to focus on growth

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With a theme of ‘The Route to Growth’, EEF’s National Manufacturing Conference 2013 provides a key insight, analysis and debate into the challenges facing manufacturers both now and in the future.

Addressing the audience of senior manufacturing executives from across the UK will be keynote speakers including Shadow Chancellor, the Rt Hon Ed Balls MP, the former Deputy Prime Minister Lord Heseltine, Chief Executive of Siemens UK, Roland Aurich and Jim O’Neill, Chairman of Goldman Sachs Asset Management.

The guest speaker at the EEF Manufacturer’s Dinner has been confirmed as UK Business Secretary, the Rt Hon Dr Vince Cable.

EEF Chief Executive, Terry Scuoler commented:

“Timed just ahead of the budget, this powerful gathering of UK manufacturing leaders will remind policymakers that they must take the same single-minded approach to growth promotion as they are applying to deficit reduction.

“The EEF Manufacturing Conference will call for bold, joined-up action to ensure that the UK economy moves out of the doldrums by taking full advantage of our industrial capabilities.”

Lombard’s Interim Managing Director, Andy Hart said:

“Supporting the UK manufacturing sector is important to us, and we are therefore delighted to again sponsor the EEF’s National Conference.

“Over the past few years we have been working closely with EEF and other manufacturing stakeholders to help raise awareness of the importance of increasing capital investment in the sector.

“This year’s Conference theme – The Route to Growth – provides a great platform to broaden this campaign.”

Topics for the Conference include:

  • The global economic context, including the Eurozone crisis
  • An international Perspective: The challenges and opportunities facing manufacturing and the supply chain in the next decade
  • Developing and retaining a skilled workforce
  • Managing global supply chains
  • Making your green investments pay
  • Making the tax system work for your innovation

The EEF National Manufacturing Conference 2013 takes place on 5 March, 10.00 – 16.45, at the Queen Elizabeth II Conference Centre, London

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Rigorous tests to 'life-proof' Ford's new B-MAX

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Ford engineers have subjected the new B-MAX to a series of rigorous laboratory tests to stimulate the toughest treatment children and pets could dish out, including soaking materials in milk and carbonated drinks.

Engineers soaked interior fabrics to gauge stain resistance and conducted testing with a medieval ‘mace’.  Plastics were pounded by a heavy rubber ball, ten times the weight of a regulation football, and Velcro was used to simulate fabrics being snagged on bags and clothes.

Senior Materials Engineer, Ford of Europe, Mark Montgomery commented:

“By testing everything from soft drink spills to muddy boots, we’ve made sure the B-MAX interior is ready for anything. I’ve got young children myself, so I’m very familiar with the mess they can create.

“These tests make sure we’ve done everything possible to make sure the car looks as good the thousandth time that families sit in it as it does the first.”

The B-MAX’s Ford ‘Easy Access Door System’ provides unrivalled access for families and luggage through hinged front and sliding rear doors that integrate the central body pillars.

Accordingly, samples of all leathers and fabrics incorporated into the compact multi-activity vehicles interior design were tested for stain resistance and ease of cleaning following 24 hours of being soaked in liquids, and smeared with soil and grease. 

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Boeing 'locate' US military contract worth $13.6m

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Boeing have signed an agreement to upgrade the US Air Force’s ‘Combat Survivor Evader Locator’ (CSEL) handheld radios with new capabilities to enable faster search of rescue of isolated personal.

With almost 54,500 CSEL radios delivered to the US Military date, the multi-million dollar contract also involves upgrading the CSEL ultra high frequency (UHF) base station network.

Developed by Boeing, the network-enabled, multifunctional radio system allows rescue teams to precisely locate isolated personnel by using multi-satellite, over-the-horizon secure communications and GPS.

First introduced in 2005, the system provides real-time communication capabilities and enhanced coordination, with the upgrades bringing the CSEL network up to the latest Information Assurance standards that protect networks from outside intrusion.

Boeing CSEL Program Manager, Steve Capps commented:

“These new contracts confirm that Boeing is meeting commitments to provide our military customers with world-class, next-generation communications capabilities.

“CSEL provides the US Military with the strategic advantage of an easy-to-use, multifunctional radio that already played a critical role in numerous successful rescues involving downed combat forces and pilots.”

Air Force Lt. Matthew Renner, who was previously a CSEL test engineer with the Joint Program Office for Personnel Recovery at Hanscom Air Force Base added:

“There’s never been anything like CSEL for search and rescue. These new capabilities can reduce rescue time and give isolated personnel another option to get home safely. The pilots we’ve worked with are really excited about it.”

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