Does the manufacturing sector need to rethink its approach to efficiency?

Restraints on capital expenditure, whether due to disruption caused by Brexit, coronavirus, or the energy crisis, means manufacturing companies may need to rethink their approach to purchasing equipment.

Adapting purchasing behaviour

Despite the wide-ranging financial impact inflicted on the sector by Brexit and the pandemic, ensuring equipment is as efficient and up-to-date as possible is as important as ever. Companies therefore may need to adapt their purchasing behaviour and explore innovative solutions that suit this ever-changing landscape.

The UK manufacturing industry started the year with output growth, however the seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index (PMI) also found supply chain constraints continue to stymie growth.

In light of this, we are aiming to highlight how companies can ensure maximum process efficiency and do more with less in these unprecedented times.

Improving process efficiency

The manufacturing sector has had to continue to operate in extremely challenging times over the last couple of years, despite large-scale disruption across the supply chain. Improving process efficiency is therefore as important as ever, and can be realised through solutions and applications that are often ruled out due to perceived limitations around solutions.

An Aggreko market survey of over 200 energy managers previously highlighted that 59% had requests for investment in new equipment to reduce energy consumption rejected in the last five years because of capex constraints. However, 59% said they never hire equipment to avoid capex restrictions.

Elevating concerns around capex and supply chain

In order to adjust and thrive, companies may need to look at more innovative approaches to purchasing equipment. Strategic hire solutions allow companies to circumvent concerns around capex constraints and the supply chain right now.

Equipment rental gives businesses more flexibility at this financially demanding time. Developing F-Gas legislation, for instance, could render an expensive permanent installation defunct in the near future – by contrast, a hired solution is future-proofed against such a situation. This adaptability also means rental is ideally suited to the manufacturing industry, where short-term contracts and seasonal demand makes modular, scalable solutions a must.

Matt Watson
Manufacturing Sector Sales Manager-Aggreko Northern Europe