Manufacturing under the microscope – Unearthing success through strategy

At a recent seminar, Clarion, Made in Yorkshire, and Partners PR jointly-hosted a breakfast seminar at Clarion’s offices. The event was put together to explore a diverse range of scenarios surrounding strategic choices and direction, as well as the associated strategy, business development, and marketing issues for manufacturing organisations to consider.

The event was incredibly insightful, with multiple leaders from some of the UK’s most innovative manufacturing businesses coming together to share their perspectives on strategy. Not only was the seminar brought to life by presentations from some of the leaders in attendance but Made in Yorkshire also presented their findings from the Made in Group’s Big Manufacturing Growth Report 2024. And the results showed that the majority of businesses are still positive about the economy and future prospects.

Overcoming the ever-evolving hurdles of uncertainty is no easy feat. But that’s exactly what the manufacturing sector across Yorkshire and the rest of the UK has continued to do. Because despite the challenges faced by industrial businesses, they’ve remained resilient and formulated effective strategies to drive their growth.

The Made in Group’s Manufacturing Growth Report 2024 found that 27% of respondents had experienced high (>20%) growth within the past 12 months, with 27% experiencing moderate (20%) growth, 20% experiencing low (<10%) growth, and 14% maintaining their existing order levels. But the impact of the increasing challenges faced by businesses is clear. 12% of respondents experienced a contraction in the last 12 months – a three-fold increase on the previous figure.

The report also displayed optimism from the senior manufacturing professionals who were surveyed. 3 in 4 respondents (75%) are anticipating sustained double-digit growth over the next 12 months. There’s a sense of confidence in strategies across the sector, perhaps fuelled by existing capabilities to adapt and overcome hurdles, coupled with positive expectations on the horizon such as the potential government initiatives intended to stimulate growth following the upcoming election.

Looking at the avenues for future growth, manufacturers are taking a stand against the challenges they face. At the recent manufacturing event, Mike Wilkinson, Senior Director of Major Pursuits at Schneider Electric, shared insights surrounding how a global company with a local focus continues to tackle the difficulties of a rapidly evolving world whilst growing a thriving multi-hub organisation that remains true to its values and purpose.

Despite the issues the sector has faced, Schneider Electric are actively driving digital transformation with the products and services they provide. Digitisation, alongside both Electrification and Climate Change, are key mega trends when it comes to driving change and acceleration in the business’ landscape. And with an approach that combines both a future-focused macro view and a detailed process-driven micro view, Schneider have developed a formidable strategy that has enabled them to take advantage of potent growth opportunities whilst enhancing profitability.

The wider sector appears to be exploring a diverse variety of avenues when it comes to growth and cost management. For the majority of respondents in the Manufacturing Growth Report this year though, almost two thirds (63%) cite the improvement of production and efficiency as a key focus for growth over the next 12 months. This area is also an enormous priority for managing costs too, with 83% of respondents stating this as a vital aspect of their strategy for handling increased business costs.

A large portion of manufacturers are also aiming to diversify into new markets, with 48% of respondents claiming this will be a key part of their strategy this year. 42% are also focusing on new product development, which appears to have been a consistently high priority in the previous year too. Alongside these two factors, many businesses are finding further areas for diversification and innovation, including 36% who are looking to implement a new business/sales model, 27% looking to expand into new geographical areas, and 25% aiming to develop new routes to market.

New avenues appear to be a primary focus for businesses within the sector, and it’s easy to see why. Changing environments, heightened uncertainty, and shifts in competitive dynamics all have an impact on business strategy development, and diversification appears to be a logical approach given the prominence of these factors.

Diversification is how Teconnex, a world leader in jointing technologies, has managed to create a consistent upward trajectory in the manufacturing sector. At the event, Richard McLoughlin, Head of Teconnex’s Power Division, shared some of the details of their strategy for success. Diversification plays a tremendous role in ensuring their long-term growth, because changes in the world signify the need for strategic pivoting. With their existing engineering skills and team members, Teconnex have been able to transition into new sectors and generate significant sales growth in just a few years, all whilst remaining aligned to their mission of “connecting customers to a cleaner world”.

Richard discussed the benefits of co-partnering and collaboration, enabling joint innovation across relevant sectors to reduce the associated risk at the early stages of projects. That shared approach can have a dramatic impact when it comes to achieving successful outcomes and making a positive change. Solutions may still start small, but Teconnex’s power product line is proof that a collaborative, innovative, and strategic approach can grow in scale very quickly.

But diversification has its challenges. And early success doesn’t mean that those challenges disappear. Questions around the reliance on particular supply routes and methods, people and skills development, the complexity of approval processes and technological development… Challenges like these can create further problems to think about. But they also represent opportunities to innovate.

As part of the event, Steve Crow, Strategy Director at Clarion, covered the importance of analysing impacting factors and applying a proactive, innovative approach to ongoing strategies. That analysis is vital, because despite changing dynamics, it’s essential to determine whether those changes are a threat, or an opportunity. A big part of how a business reacts to these changes can be dependent on where the organisation currently stands in their lifecycle.

New marketing strategies are also on the horizon for manufacturers in the UK. According to the Made in Group’s Manufacturing Growth Report 2024, 48% of respondents are looking to revitalise their marketing efforts with a new approach with the aim of driving further growth. Compared to the previous year, where only 23% of respondents were thinking of revisiting their marketing strategy as a means for growth, this is a notable increase. And it’s for good reason.

Effective marketing is unrivalled when it comes to expanding brand presence. Particularly now, where the manufacturing sector is keen to capitalise on new opportunities and meet rapidly evolving customer demands, a well-thought-out marketing strategy can have a significant impact. But how can a business build a strategy that works?

At the Strategy for Success seminar, Fiona Conor, Managing Director of Trust Electric Heating, provided an overview of how Trust established themselves in their industry with an approach built around achieving rapid organic growth. A key factor in their success came from having a deep understanding of just how much the world is changing. Those changes present challenges, but like we’ve mentioned above, they also unlock the doors to new opportunities.

With the evolution of technology and media, there’s currently an average of 3.6 different connected devices, per person, per household, and those devices are one of the primary consumption methods for marketing materials across the globe. Regardless of the industry or sector, business success typically relies on being able to be seen on those devices. But there’s more to it than that. Just being seen isn’t always enough. It’s about being seen, and heard, the right way, whether that’s on those devices or not.

But when it comes to the digital realm, your website is your biggest salesperson. Creating a website that meets the needs of both your business and your customers is essential. That means being an educator with your content, being consistent with your branding and personality, being ahead of the curve with your search engine optimisation (SEO), and being intuitive with your user experience (UX) design.

From a wider strategy and costs perspective, you have 2 generalised options. You can take the slow, steady, and sustainable approach to growth that generally requires a lower investment (typically at the cost of slower returns), or you can go down the path of paying to play when you’re looking for fast growth and returns. But whatever angle you choose, start with the end in mind. Know and understand where you want to be, and build a strategy that gets you there.

When it comes to reaching the right audience for a brand, crafting compelling communications is undeniably effective. The fact is, PR is a phenomenal tool in any business’ marketing arsenal. At the event, Karen Tinkler, Director and Co-Owner of Partners PR, a Prolific North Top 50 PR agency with 35 years’ of experience in delivering B2B campaigns, gave an in-depth overview of how manufacturers can utilise PR and communications to their advantage for growth.

The benefits of PR are easy to see – it reduces uncertainty, improves understanding, builds trust, fosters loyalty, and highlights opportunities. But getting the most out of it requires planning and a strategic approach. When it comes to putting a plan together, businesses need to see if the story they’re currently telling aligns with the one they want to move forward with and think about a long-term strategy to reap the benefits. Planning also means establishing the right audience. Businesses need to know who they’re targeting, and where to find them. That also means answering questions surrounding acquisition targets and potential successors, finding the right balance between existing and prospective customers, and ensuring they don’t neglect their internal audience.

A big part of getting PR right revolves around the messaging. Different markets will often require differences in the messaging. It’s important for a business to put themselves in the shoes of their audience and tailor their messaging to the needs of who they’re speaking to. Understanding the challenges that people and businesses face is a way to establish a connection, and offering solutions to those challenges makes that connection stronger. Because people want to know what’s in it for them, and they need to trust what they’re being told. Demonstrating credibility in the messaging is a crucial aspect of this.

It’s also essential to think about the channels of communication. There’s a seemingly endless list of channels that businesses can take advantage of, including paid, earned, shared, and owned. Some channels may be ones that are already used, and some may be new. But a big part of it boils down to being visible where the audience is. Brands need to deliver relevant messages, and they need to be consistent.

It goes without saying that people are one of the most important assets a business has. Andrew Whitwell, Managing Director of Labman Automation, shared insights at the Strategy for Success seminar on Labman’s approach to people and culture. Labman are an organisation whose solutions form the backbone of many of the world’s leading laboratories. Their emphasis on providing long-term support enables the businesses and institutions they work with to fully utilise automation, without sacrificing efficiency and precision.

In terms of people’s role in business growth, they play a direct part in formulating strategies and pushing them forwards. And that goes for everyone within the business. That’s why Labman are different about their approach to people. A big contributor to the success of Labman’s approach is the emphasis on building and developing a culture where employee happiness is a priority. Their internal strategy is very people-focused, with a flat structure and an emphasis on openness. That means there are endless opportunities for the cross fertilisation of ideas. Those ideas can be brought to life, creating a collaborative environment where good ideas can be effectively implemented.

Skills are equally important. Organised people are vital for strategising, but the right skills are needed to put those strategies into action. The challenges of skills shortages have become more and more apparent in recent years. Finding ways to overcome those hurdles and acquire the relevant skills is an essential consideration for manufacturers both today, and in the future.

At the end of the seminar, we discussed the considerations for succession planning. For businesses in any sector, it’s important to plan early. With the current business landscape and the ever-shifting dynamics of our world, early planning is more important than ever before, particularly in the manufacturing world. A smooth transition is essential to minimise business disruption, and ensuring that leadership roles can be filled whilst retaining top talent at all levels can have a dramatic positive impact on the future of the organisation.

Business owners need to consider what may be the right solution for them in terms of their options – is it suitable for the business to remain in the family, or is it better to seek external management? Regardless of the situation, it’s important to get expert advice. Successful succession planning involves extensive preparation of the business, and expert advice combined with an early plan can help to negate the hurdles of a last-minute process whilst enabling steps to be taken along the way.

Manufacturing is a key sector for Clarion. We have a strong presence across various sub-sectors, including plastics, chemicals, building products, advanced engineering, textiles, aerospace, automotive, food & drink, and more. We have a comprehensive understanding of both the broader issues affecting the entire manufacturing industry and the specific nuances of individual sub-sectors.

Learn more about our manufacturing sector experience.