British manufacturing has not had it easy over the last few years – but, with predictions that the tide is about to turn, companies can protect their razor-thin margins by using automated workforce tracking, writes absence management software provider, Factorial …
When you think of modern manufacturing, sleek robots and sophisticated AI systems are the first vision that springs to mind. The thrum of tools, the hum of chatter on the factory floor, and the clang of metal on metal seem to belong to a long-gone, post-war age.
Yet the real truth lies somewhere between the two, and the melding of these worlds is pushing British manufacturing back to new heights – and one way technology can protect your company's margins during this period is with automated workforce tracking.
Manufacturing margins lost through scheduling
Money is lost in several ways when it comes to manufacturing margins, and tracking the workforce is one cost-effective and easy-to-implement method to solve several issues. Each of these can cut into profits, even if they seem small at the time.
The first of these is the accumulation of overtime. A huge problem in the UK, workers average around 7 hours per week in overtime completed, costing around £7,200 per year.
It is an issue that is twofold. If your company pays this, then it cuts into your payroll. Yet a lot of this overtime is going unpaid, which results in staff burnout and causes serious issues in the workplace.
This can snowball, and if it results in a lack of staff due to illness or stress, then it can get worse. Unscheduled downtime costs an average of £5,121 per hour, with smaller companies losing £500 and the largest haemorrhaging sums of £10,000.
Why accurate scheduling and tracking are imperative
This is where excellent scheduling and tracking come in, and holiday management software and paid time off trackers are the way to go. As people can request time off from wherever they are, it means they don’t have to trudge to an office. This reduces downtime, and it also means conflicts are automatically detected, so you can make sure everyone gets the schedule and holidays they deserve. This will eventually cut down on overtime.
Compliance issues are also a problem. Without good scheduling, people may work over their lawful limit or not take scheduled rest breaks. All of this can lead to a break in compliance, meaning you could face penalties and fines.
With the furniture market forecast to grow 2.2%, UK manufacturers are investing in big-ticket quality. However, to sustain this, they must solve this 'hidden leakage' in workshop floor attendance and holiday overlapping. Quality absence management software like the products provided by Factorial can solve many of the issues mentioned above by ensuring quality scheduling, which helps you comply with labour laws and keeps everyone on the shifts you need them for.
How can automated tracking increase productivity?
Automated tracking is a way to provide instant feedback on an employee's attendance, helping track the workforce, and a way to keep accurate records. It works in a simple manner, with employees clocking in and out as they arrive and end a shift. By using automation, managers can be alerted to absences, timing and location. This is extremely useful when using remote, hybrid workforces or multiple locations.
Having this in place provides several benefits. For your payroll, it cuts down the time spent on menial administrative tasks exponentially. Issues and discrepancies can also be cleared up more quickly. Estimates are that HR teams spend around 44% of their time on routine tasks, often equating to around 6-8 hours a week. If people are absent, then HR can easily log it as illness, maternity leave, holidays, jury service or several other reasons.
Finally, not all members of your workforce may be tech-savvy. Many people still don’t know how to use a basic computer, or may struggle with smartphones. Thus, you need a system that is simple and easy to use for all.
Make sure you take the time to show them how it works and run tests. Once they are happy, you will be able to reap the benefits of automation.
The threats facing global and UK manufacturing
If there is any doubt about how impactful these changes could be, then it helps to look at the state of manufacturing across the globe.
China’s manufacturing industry has flourished for a long time, particularly when it comes to furniture. For a long time, cities like Foshan have mass-produced cheap, low-quality items for offices and homes. The city accounts for 35% of China's furniture industry and brings in around 700 billion yuan per annum.
The growth rate of the regional domestic product has shifted from 1.3% and 0.2% over the last two years. Several factors have been attributed to this – US tariffs, a lack of demand domestically, and aggressive prices. In some instances, companies are selling items for less than production cost. Yet the overriding factor is that consumer habits are shifting and the sector needs to move from outdated manufacturing processes to newer, updated ones.
Domestically, the picture is also looking bleak. Westbridge Furniture collapsed at the end of April. The reasons given were "operational disruption, weak trading and the loss of a key customer", and it was the end of employment for just under 300 staff.
National company Bisley Office Equipment, with hubs in South Wales, Manchester, Dublin and London, has also posted huge losses of £6.35m in a year.
But the companies that are looking to automation, either in HR or production lines, seem to be weathering the storm. Jeld-Wen is a door manufacturer based in Penrith. They have recently looked to efficiency to reduce leakage, redesigning their plant and introducing a third production line. This has been enhanced by AI technology, allowing the company to increase production by 50% and, contrary to the ideas surrounding the use of AI, it has created 30 new jobs.
Even the behemoth IKEA has been using automation. In 2023, it replaced its call centre workers with a chatbot named Billie. However, unlike many companies, it also made sure this created more jobs, upskilling its workers to become interior design advisors.
Finding the right product for your company
Thus, automation is the way forward, and deploying it through workforce tracking is one of the quickest and most cost-effective ways to do it. The trick lies in getting the product that is perfect for your needs.
Begin the search by looking at software that provides the basics. At the bottom of this pyramid are automated time and attendance systems, so that manual timesheets become a thing of the past. Ensure any system is easy for staff to use, and that it has smart scheduling features. This allows you to have the right breaks, holidays and compliance with work and labour regulations.
If you have multiple sites or hybrid workforces, you may want to consider GPS and geofencing. They allow you to more accurately capture workers and their hours at different locations. Geofencing, for example, will automatically log an employee's hours as they enter a given location, such as your building. This helps eliminate 'ghost time' and increases productivity.
After this, you want a system that easily turns analytics into data, making practical and actionable solutions. Systems like Factorial can generate a range of reports to assist you, from leave balances to approved leave requests, absence trends and compliance policies. Also important are automated notifications, such as when scheduling conflicts occur.
Lastly, you want a system that integrates with other areas – time management systems that integrate with payroll, talent management and finance. This will allow you to scale up HR automation easily as you grow, ensuring margins remain protected.
The immediate future of UK manufacturing
The UK economy is always one to surprise. In the first half of the year, despite geopolitical turmoil elsewhere on the globe, it grew by 0.8%, dumbfounding analysts who had said it would shrink. While some of the current issues (particularly the rising price of oil) will take time to bed in and show on balance sheets, British manufacturing has a lot to look forward to.
For the first time in an age, sustainability, investments and the adoption of technology are allowing it to scale up quickly. Suddenly, this seems much easier than it did in the past. There are issues, of course – lingering problems with high oil prices and a cooling global economy.
While AI and technology may promise a lot, and seem shiny and new on paper, the practical truth is that robots and major overhauls are not the changes that make the most difference. Instead, cleaning up small leakages in lost productivity and scheduling can really impact profit the most, and with very little initial outlay.
All you need is business management software, which may already be part of your business. If it is, you need to see if it is future-proof – able to handle current demands, but also those coming in the next few years. If not, now is a time for change to get the productive and happy workforce you deserve.
