Tag Archives: business

Building an #innovative economy

Posted on by
1395308240_silicon-valley-sign-lg

Here in the UK we hear lots about the need to grow the economy but a lot less about how to do it.

If we want to develop an innovative society we need look no further than Silicon Valley which is the most successful example on earth.

Silicon Valley has key attributes which are key to its success in generating billions of dollars in revenue & employing thousands of talented Engineers who earn enviable salaries. These attributes are not immediately obvious:-

  • It may surprise many to learn that Silicon Valley has a strong military connection particularly with the U.S Navy, many early innovations were as a result of collaboration on Radio & communications systems leading to the Arpanet the direct forerunner of todays Internet. Some of today’s smartest innovative individuals work in the Defence Industry so it would be obvious to cultivate those links.
  • The presence of an Internationally renowned eduction establishment – Princeton – has been key to the ‘Valleys’ success. Princeton has developed & encouraged technically educated entrepreneurs to start & grow numerous successful enterprises.The U.K has some of the world’s leading Institutes, unfortunately recent government policy seems to make it increasingly unviable to survive economically as a Student so the reversal of that trend is another positive.
  • People may be surprised to learn that Silicon Valley is the home to numerous large Law firms whose accessibility has allowed start ups to quickly resolve disputes & grow rapidly. We can learn a lot here.
  • Over 30% of SV residents are immigrants. The ability to welcome International migrants who are highly skilled & educated creating a multinational society of entrepreneurs & Engineers is a key component to success. This requires a sensible proactive immigration/visa policy which addresses the need for skilled Engineers whilst improving our domestic training & development policies.
  • There are many Venture Capital firms in the area which provide key access to funding to ensure prosperity & growth. This seems to be a major gap in the UK where the access to venture capital is constrained.

All of these key components are essential if an Innovative Society is to thrive & grow generating huge revenue & employment prospects.

Chris@amberhill.biz

www.amberhill.biz

Reasons to be cheerful

Posted on by

2024 has been another tough year for the UK Automotive industry but let’s remind ourselves of some of the positive developments:-
1. Tata’s £4 Billion Investment in a UK Battery Factory: Tata Group announced plans to build a significant electric vehicle (EV) battery factory in Somerset, marking one of Europe’s largest such facilities. This investment is set to supply Jaguar Land Rover’s future electric models, including Range Rover, Defender, Discovery, and Jaguar brands, with production expected to commence in 2026.
2. Record High EV Registrations: The UK’s zero-emission vehicle (ZEV) policy proved effective, with over 25% of new car registrations in November being electric—the highest on record. This surge reflects growing consumer confidence in EVs, bolstered by expanding charging infrastructure and the increasing affordability of used electric cars.
3. Clarification on Hybrid Vehicle Sales: The UK government clarified that new hybrid cars would remain on the market until 2035, despite the planned ban on new petrol and diesel cars from 2030. This decision provides the automotive industry with a clearer transition path towards full electrification, allowing manufacturers and consumers to adapt accordingly.
4. Jaguar ran a highly successful marketing campaign & revealed their astonishing concept EV at the Miami art show polarising opinions & generating more discussion about Jaguar than the last 30 years.
5. Bentey launched their Fourth-Generation Continental GT Speed: Bentley introduced the 2025 Continental GT Speed, its most powerful model to date. This fourth-generation vehicle features a twin-turbo Ultra Performance Hybrid V8 engine, producing 771 horsepower and accelerating from 0 to 60 mph in 3.2 seconds. The design incorporates elements from the Mulliner Bacalar and Batur concept cars, including a new single-headlight setup, marking a first for Bentley since 1959.
6. Strategic Electric Vehicle (EV) Plans: Bentley announced plans to launch its first electric vehicle, a luxury SUV, in 2026. Additionally, the company will continue offering plug-in hybrid models until 2035, adjusting its electrification strategy to meet global demand and varying regional adoption rates.

2025 will see more major challenges & many significant developments & innovations. Bring it on.

chris@amberhill.biz

www.amberhillassociates.com

Jag you are…..

Posted on by

If you’re reading this I guess your one of the 300 million who have seen this Ad & are aware of the absolute furore it has created amongst the Automotive community & beyond, particularly those who consider themselves loyal Jaguar customers & lovers of the brand.

Indeed Jaguar has a long proud history of auto design & manufacture producing such icons such as the e-type & xj series amongst others.

Many have reacted quite strongly with accusations of ‘wokeness’, one even accused the ad of being ‘feminine’ as if that was the greatest slur.

Most of this vitriol seems to come from middle aged men who are, as many studies show, the main demographic of Jaguar owners.

Indeed Jaguar’s sales figures reflect this with steadily declining sales mirroring the demise of said demographic.

Now before you hurl abuse at me I admit I am part of that demographic & I have some stake in Jaguar, I have done much work with JLR over the years & am proud of that. I have also owned 2 jags & loved those cars.

However with the advent of electric vehicles they face a huge dilemma- reinvent themselves or die.

In order to do this they need a radical redesign & a new market.

The guy in charge of the design (who has barely got a mention in all of this ) is Gerry McGovern – if you’re not familiar with his work do your own research.

Copy Nothing

chris@amberhill.biz

The power of #AI

Posted on by

The world of Artificial Intelligence (AI) is rapidly evolving and becoming increasingly important in our lives. AI is a form of technology that enables machines to think and act like humans, and it has the potential to revolutionize the way we live and work.

AI is already being used in a variety of ways, from self-driving cars to virtual assistants. AI can be used to automate mundane tasks, such as scheduling appointments or managing customer service inquiries. It can also be used to analyze large amounts of data and make predictions about the future.

AI is also being used to create more personalized experiences for customers. For example, AI can be used to analyze customer data and create personalized recommendations for products and services. AI can also be used to create more efficient and accurate customer service experiences.

It is also being used to create more efficient and accurate medical diagnoses. AI can be used to analyze medical images and detect diseases and conditions more quickly and accurately than humans. AI can also be used to analyze patient data and create personalized treatment plans.

Artificial Intelligence is also being used to create more efficient and accurate financial services. AI can be used to analyze financial data and make predictions about the stock market or other investments. AI can also be used to create more efficient and accurate banking services.

AI is also being used to create more efficient and accurate manufacturing processes. AI can be used to analyze manufacturing data and create more efficient and accurate production processes. AI can also be used to create more efficient and accurate supply chain management.

AI is also being used to create more efficient and accurate security systems. AI can be used to analyze security data and create more efficient and accurate security systems. AI can also be used to create more efficient and accurate facial recognition systems.

AI is an incredibly powerful technology that has the potential to revolutionize the way we live and work. As AI continues to evolve, it will become increasingly important in our lives.

chris@amberhill.biz

Countdown to zero……………..#EV

Posted on by

The U.K Governments decision to ban the sale of new petrol & diesel cars by 2030 presents some real challenges for the UK Automotive industry. A development lifecycle of 5-7 years is not unusual for a brand new model & when we are looking at a whole different powertrain & chassis with the consequent implications for production assembly then we are talking major developments.

JLR spent over $1 Billion developing its 2014 Engine Plant for Diesel & Petrol Engines, this gives some indication of the huge resource requirements for Battery powered vehicles.

There is a lot of debate as to whether Electric Vehicles actually produce less CO2 than their ICE (Internal Combustion Engine)  counterparts but this report from ICCT organisation clearly debunks this.

There is some parallel with the elimination of leaded petrol, responsible for the death of over 5000 adults per year & countless examples of brain damage to children; it took over 12 years from unleaded petrol being available to a European Directive in 2000 before it was eventually banned.

Interestingly the Government announcement makes no mention of exporting ICE vehicles; only sales in the U.K. As we currently export 80% of all UK manufactured cars (admittedly 55% to the Eu) there is a little bit of wriggle room for Manufacturers to continue making ICE cars in lower volumes beyond 2030. There are many part of the World where Electric Vehicles will not prevail for many years to come but in urban conurbations in the ‘developed’ world their ascendancy is without doubt.

This will result in huge engineering & change management opportunities in the ever evolving automotive sector.

There will be much debate over the coming decade about the pro’s & cons of electric cars but there is no doubt about it, after a century of production the Internal Combustion Engine is heading for the breakers yard.

chris@amberhill.biz

www.amberhill-associates.com

 

Where we’re headed in #2021

Posted on by

Wow!! – 2020 – you couldn’t make it up; so where are we headed in 2021?

  • Working from home is now a cultural norm; whatever happens to Coronavirus this is one trend which will not be reversed. Workers who are savvy enough & technologically enabled to work remotely will continue to seek out opportunities which offer this option making its reversal impossible. Declining revenue from City Real Estate will instigate a decline in Inner City Property prices & a mass migration to the suburbs. The London property bubble is well and truly ‘popped’
  • eCommerce market share will continue to increase; if the High Street is not dead it’s on its last legs & is wobbling badly. This will drive eCommerce logistics where same day delivery becomes the norm.
  • ReCommerce sustainability will drive a mass market of re-use & hiring of products for the short term rather than as a one off purchase.This will also impact the automotive market.
  • Cloud storage of data will continue & there will be an even greater emphasis on the customer.
  • In Automotive, the current trends of increasing electrification & automation will drive a decrease in car ownership in the Western  world of around 25%. As new Generation-Z drivers familiar with the cultural trends of shared ownership & reduced carbon footprint migrate away from individual ownership where cars currently spend 95% of their time sat in a parking lot. China will continue to grow driving local manufacturing capacity.
  • Brexit will give UK Auto companies the excuse they are looking for to slash car lines, reduce factory real estate & reduce headcount.

Chris Robinson BSc

www.amberhillassociates.com

 

IR35 Precipice approaches #IR35, #contractors, #tax

Posted on by

Recent Government legislation means that from April 2021 Medium to Large private sector companies will assume responsibility for determining how the contractors they engage with will be taxed.

The definition of a ‘Medium to Large company’ is one which meets 2 or more of the following criteria:-

  • Annual Turnover > £ 10.5 Million
  • Balance Sheet >  £ 5.1 Million
  • More than 50 employees

So lets’ take a step back – what is IR35 ?

HMRC applies certain criteria to determine whether a contractor is within or without IR35

Within IR35 means the contractor pays tax & National Insurance contributions as if they are directly employed by the client – This is deemed to be the case if the client decides working hours, start & finish times, promises work in return for payment, depends on that individual doing the work etc etc

Outside IR35 means the contractor pays their own tax & National Insurance normally by the use of a Limited Company & is deemed to be outside IR35 because payment is on a project basis, no work is guaranteed by the client, work can be done by a ‘substitute’, hours & start & finish times are not fixed etc etc

The main change is this:-

Currently IR35 status is determined by the Contractors Limited Company – from April 2021 this will be the legal responsibility of the client.

The full consequences are yet to become apparent but some organizations have already decided to apply a sweeping classification of all contractors as being within IR35.

Following on from Covid-19 &  Brexix we have to challenge if this is the best approach to meet the needs of a dynamic & flexible economy.

chris@amberhill.biz

www.amberhillassociates.com

 

 

 

Automakers on limp mode………#automotive, #manufacturing, #uk, #Covid-19

Posted on by

As the automotive industry limps back to work post Covid-19 the world is a very different place & will stay that way for a long time. The future success of these companies is very dependent on having an adequate electric vehicle proposition as we head towards the next hurdle which is coming up fast – #Brexit & further ahead the abolition of fossil fuels cars in 2035 or even sooner. So what are the implications for manufacturers based in the U.K.

Aston Martin.

Recently announced redundancy for 25% of its workforce & the replacement of CEO Andy Palmer – the future of Aston depends on the success of its DBX SUV model which is built in South Wales. No electric models on the horizon.

Benley.

VW owned Bentley has now returned to work at Crewe but is struggling to maintain capacity & is rumoured to be running at @ 50% following the introduction of social distancing measures – consequently Bentley has announced redundancy plans affecting 25% of the workforce. Bentley doesn’t have a fully electric car but intends to develop one by 2025.

Jaguar Land Rover

JLR has returned to work at Solihull & more recently at Halewood. They have announced today that Castle Bromwich will not re-open until 10th August.  JLR has one electric vehicle at he moment, the award winning I-Pace but this is built at the Magna plan in Austria. Plans are in place to extend the range & to build these cars at Castle Bromwich. JLR has not announced any post covid redundancies having gone through an extensive restructuring exercise in 2018/19 but no one would be too surprised if further cutbacks were announced given the company has lost 3 months production & was recently granted a 500 million loan from 3 Chinese banks.

Nissan

Nissan recently returned to work at it’s Sunderland Plant following an announcement about a post Covid worldwide restructuring which will see the closure of its Barcelona Plant & commitment to Sunderland as a manufacturing centre for Quashqai & Juke SUV’s & could also produce their Renault counterparts the Kadjar & Capture.

This was further quantified by a statement a week later that this all depends on their being frictionless trade with Brussels. Given recent developments failure to achieve this by the EEC & the UK government would be tantamount to a suicide pact.

The other bonus for Nissan is that Sunderland produces 15k of the incredibly successful electric Leafs per year.

Toyota.

There have been no major announcements from Toyota but they have returned to work in Derbyshire producing a range of hybrid vehicles. Toyota’s strategy is to reduce overall carbon emissions by producing hybrid vehicles rather than full electric vehicles due to the current constraints around battery technology.

Mini

Have returned to work at Oxford having remodelled processes around social distancing & are producing some Electric Minis as part of the range.

Lotus 

— Geely group has invested in Lotus heavily & the company has a tight well targeted product range including the fantastic new all electric hypercar the Evija. The company has also benefited from picking up a number of talented & experienced engineers from JLR.

Whatever the next few years brings we will be looking at a tighter, leaner UK Automotive industry with some losers & some big winners depending on their ability to meet the challenges of post Covid, Brexit & Electrification.

chris@amberhill.biz

www.amberhill.biz

 

 

 

Bring it all home……#reshoring

Posted on by

A recent survey in The Engineer reported that 59% of correspondents think that bringing manufacturing elements of the Supply Chain back to the UK (#reshoring) should be a priority following the Covid19 Pandemic outbreak.

There are some really good points made in the comments section & following Britain’s exit from the EEC there is no reason why this should not be Government policy, even stimulated by official Government subsidies – but should it ?

There is no denying that ever since the late 1970’s Britains manufacturing base has shrunk from around 32% to 10% of GDP – but does this matter ?

To anyone who has been involved in Engineering & Manufacturing over the last 30 years & who has seen millions of good quality skilled & relatively secure jobs migrate to China & Asia to be replaced by insecure temporary low paying ‘gig economy’ roles the answer  has to be ‘yes’

However we also need to remember this shocking decline was also due to a certain amount of complacency in British Manufacturing as a result of poor Management, sloppy working practices & shoddy quality.

Rebalancing the Economy by encouraging high quality Manufacturing supported by competent Management & Customer focussed Quality Management sounds like a positive move indeed.

Chris Robinson

www.amberhill.biz

Auto Industry at a crossroads………….#innovation

Posted on by

Despite claims to the contrary there is little doubt that the Automotive Industry has lagged behind major social trends in terms of energy efficiency, global climate change & emissions.

For decades the industry did little to improve fuel efficiency until the oil crisis of the early 1970’s brought about the demise of gas guzzling V8’s & V12’s.

The industry now faces a perfect storm of stricter emissions controls particularly regarding Nitrous Oxide emitting Diesels & consumer pressure for a ‘green’ alternative.

This has all been exacerbated by the Volkswagen emissions scandal although to be fair to the Automotive suppliers they have been reacting to social pressure to reduce carbon dioxide emissions (from petrol cars) backed by Government incentives to increase diesel motors at the expense of petrol. This has been promoted in the U.K & elsewhere by reducing Road Tax on Diesel cars & making petrol relatively expensive.

Governments seem to conveniently forget it takes 5-7 years to bring a new model to market from initial concept to volume sales.

Whereas most of the major manufacturers have invested heavily in electric & hybrid alternatives they face disruption from ‘new’ players in the market like Tesla. Indeed future competition will come from the Technology sector & not the traditional Automotive sector.

It has been estimated that up to 80% of new cars are bought via ‘cheap’ finance, readily available due to historically low global interest rates. This cannot last & already there is talk of a finance bubble ready to burst.

The Auto industry faces many challenges over the coming years & needs to be fleet of foot & responsive to customer needs if they are to survive the next decade when technology & social changes will only become more pronounced.

Chris@amberhill.biz

www.amberhill-associates.com