Table Of ContentRedesigning Manufacturing
Redesigning Manufacturing
Reimagining the Business of
Making in the UK
Michael Beverland
University of Bath, UK
Beverley Nielsen
Birmingham City University, UK
and
Vicky Pryce
Centre for Economics and Business Research, London, UK
© Michael Beverland, Beverley Nielsen and Vicky Pryce 2015
Softcover reprint of the hardcover 1st edition 2015 978-1-137-46521-4
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First published in 2015 by
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ISBN 978-1-349-49945-8 ISBN 978-1-137-46522-1 (eBook)
DOI 10.1057/9781137465221
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Contents
List of Figures vi
List of Tables v ii
Preface viii
Acknowledgements x
1 Introduction 1
2 Why Manufacturing Needs an Image Makeover 13
3 The Future of Manufacturing Debate 3 7
4 How UK Manufacturers Create Value 61
5 Branded Businesses 8 2
6 Innovation Pathways 101
7 Manufacturing’s Business Model 127
8 Ecosystems: Supporting Manufacturing Success 143
9 Conclusion and Implications 175
References 185
Index 193
v
List of Figures
2.1 Percentage of UK GVA accounted for by selected sectors,
1970–2009 22
2.2 Percentage of UK employment accounted for by
selected sectors, 1970–2009 23
2.3 Percentage of GVA accounted for by manufacturing
across countries, 1970–2009 24
2.4 Real gross output by sector in UK manufacturing,
1973–2009 35
3.1 The future of manufacturing debate 56
4.1 The UK manufacturing business model 62
6.1 Classic innovation model 102
6.2 Brand-driven innovation model 105
8.1 Designing distributed value creation 1 64
8.2 Midlands output structure taking into account the
wider impact of manufacturing 166
8.3 UK manufacturing output performance, 1950–2013 167
8.4 Comparative GDP impact of sector product spend 167
8.5 Assessment of comparative contribution of
production to UK GDP, 2006–2011 168
8.6 Assessment of comparative contribution of production to
Midlands GDP, 2006–2011 1 68
8.7 UK GVA, manufacturing, financial services and
export shares, 2006–2014 171
8.8 PMI productivity, January 2008–2014 172
vi
List of Tables
3.1 M anufacturing employment by industry, Great Britain,
1966–2011 39
3.2 Trends in GVA competitor countries 4 1
3.3 Trends in employment competitor countries 41
3.4 SIC Definitions of manufacturing technology 43
5.1 Effects of brands on financial ratios 84
5.2 Effects of brands on business-to-business financial ratios 93
vii
Preface
In writing this book three very different people came together who
through their separate experiences concluded that manufacturing
needed redesigning and reimagining. Perhaps it required a makeover
too as a bit of a Cinderella dimmed by the service sector’s rising star.
In reaching this shared conclusion each came via a very different
route: a professor of marketing at the University of Bath with practically
focussed branding expertise whose fascination about the links between
creativity and making prompted this book and who has provided the
bulk of its content; a renowned economist with experience at the highest
echelons in Whitehall and worldwide in economic development; and
an individual who by working at the interface of business, policy and
academia gained some insights into the often overlooked gaps sitting at
the connection points – and all bringing their fresh perspectives.
We have shared views, with our partnership clarifying the need for a
greater understanding of how manufacturing works, and what it needs
to work better. We make a heartfelt plea for a reassessment of this sector’s
vital contribution. Our aspiration is for a STEAM skills agenda, with the
‘A’ representing ‘art’, ‘design’ and ‘entrepreneurship’, for, as a nation, we
have been at our best where our creativity, craft, design, science capacity
and inventiveness combine.
The book is written to provide greater practical insights into the many
ingenious ways manufacturing thrives, competing successfully globally
to generate jobs, drive productivity and innovation, and contribute to
our trade balance, quality of life and global reputation. We urgently
need to build on current success by constructing ‘mind to market’ and
‘learn by doing’ cultures and a connectivity helping our producers in all
parts of our economy link with sources of talent, expertise, knowledge
and skills development.
As our economy depends increasingly on the interactions between
companies coming together and sharing ideas, this intangible creativity,
often applied as a design input and manifested through strategy as a
branding output, is the brainpower fuelling growth. It seems insubstan-
tial, it is the stuff that dreams are made of and yet when we get it right
and produce something great it changes the world and the way we live.
viii
Preface ix
To grow faster, quicker and with more success in this environment we
need to nurture curious cultures and our ‘free spirits of enterprise’. We
have the creative capacity; it is just not sufficiently aligned to meeting
and shaping market need. To deliver this, real long-term leadership is
required, as well as courage and commitment, and a clear focus on devel-
oping the very best products and services to meet emerging lifestyles,
which requires innovation to be properly integrated across multiple
areas of expertise.
