The cost of manufacturing in low-cost labour economies has steadily taken a toll on our  people intensive industries in the western world. The national and international defences that once buffered manufacturing in this region from the negative impact of foreign influence have not simply been lowered, they are no longer standing.

On any day, it is not unusual to hear or read about our most revered and valued western brands relocating their work to countries elsewhere, to reduce costs by employing a wealth of cheap, but skilled, labour.

The effect has, of course, not been felt uniformly – not all western countries are as big, or have the same political clout or intellectual property (IP) infrastructure, as the United States, for example. Nor does the entire western world benefit from the manufacturing subsidies and exchange rates that Europe currently enjoys.

This trend to relocating work, however, is neither imaginary nor exclusive to one country. Its impact has affected all western nations that produce anything and is not easy to deal with.

So what is the way forward? While we certainly cannot hope to remain competitive solely on a cost basis, it is possible - and, in many ways, much more sensible - to augment and restructure our competitiveness by developing and using new and innovative approaches to knowledge and IP generation. 

One reason for this is that the strength of east Asia also indicates an inherent weakness. While countries such as China may be very good at imitating existing manufacturing processes and pirating the west’s most valuable IP, they have yet to create a significant amount of exportable knowledge or IP of their own.

If we want to take advantage of this, western industry, academia and governments must adopt a collaborative approach to developing products and knowledge. Both steps are essential if the proposed knowledge-based economy is to thrive. However, this is not without its own inherent obstacles, as within most institutions, at some level, there exists significant resistance from key decision makers to accepting things must change.

South Yorkshire – the region where the Advanced Manufacturing Research Centre (AMRC) is based - has received worldwide recognition for its ability to develop step changes in techniques that have saved millions of pounds per year. Yet all this work would count for nothing if institutional resistance inhibited the transfer and integration of knowledge quickly and effectively into industry. 

Through our partnerships and heritage, we have developed the strength and skills to equip companies with the latest tools, techniques and processes available, and demonstrate to them that manufacturing in the west is still a viable option.

An example of this was our work on the 787 Dreamliner, which enabled French-based group Messier-Dowty to win the contract for the entire landing gear for the platform, its first business win for Boeing commercial aircraft. Messier-Dowty, which has manufacturing facilities in France, England and China, among other countries, delivered its first landing gear under the contract in April 2007 to the US giant’s site in Wichita, Kansas.   

Yet when the AMRC was established in January 2001, all the aerospace companies we approached initially believed that they had little to learn from a university research centre in South Yorkshire. We also found many were reluctant to ask us for help, particularly if they employed no graduates. 

Since then, however, those who have worked alongside the AMRC have – without exception - dramatically improved their competitiveness as a result. Many did not  expect a university to have solutions relevant to their needs, but we must always remember that realising we do not know everything is the first key step in becoming more competitive. It is no exaggeration to say that South Yorkshire now has the potential to lead western manufacturing in an increasingly competitive world.

The best way for the sector in this region to create growth and opportunity involves using an innovative, knowledge-based approach that continuously advances best practice. By adopting this, we can maintain our momentum, while ensuring our competition is constantly running to keep up with us.

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