We’d like to talk about the topics that have touched the shipping industry the most, inspired vibrant discussions and made us feel more human during 2017.
In 1914, Ford offered its workers double the market average wage and shorter working days. As a result, this helped to minimise their employee turnover. Henry Ford said he “wanted to help his workers have a life, not just a living.”
There has been real growth for the UK economy. But, the countries productivity is still stuck at 2008 levels. While the most growth for productivity has been in the automotive sector. If productivity in the UK (as a whole) had grown in the same way as the car industry, the economy would be £500 Billion larger than today.
Source: BANK OF ENGLAND 2015
James Sproule, the Chief Economist and Director of policy at the Institute of Directors. In an interview with Toast TV said that everything about the car manufacturing industry has improved, “it’s a better made product, made by fewer people and made more efficiently.” John Neil, Chairman and CEO of Unipart Group commented in a similar interview.
“The things that the automotive sector has learnt to do to continuously optimised the use of resources and service delivery. That’s what it looks like on the surface but you have to get behind it and realise it’s a whole philosophy of thinking and working which is deployed in a synchronised way throughout the entire supply chain of the automotive industry.”
This sector has been a driving force behind the UK economic recovery. Due to this, Unipart have collaborated with Universities and are helping to influence and train the next generation of engineers. Graduates will have the skills industry needs, hence this is crucial as more collaboration between business and universities will provide new technology and a higher level of skills that are vital to raising productivity. Consequently, people currently working in the industry believe that if we don’t improve our technical ability we won’t be competitive, there for wont increase our productivity.
John Cridland who is the Director General at CBI said that “what has happened with automotive is they have focused very significantly on the market they are seeking to serve. The industry has then also begun to strengthen its supply chain.” One of the reasons why the car industry has become the poster child for productivity is because their key driver is out preforming the competition. The main aspect of this being productive due to efficient use of resources and eliminating waste. The sector is constantly looking at ways to improve their productivity, through manufacturing, collaborating with higher education, training and engaging their staff and adopting best practices across the board.
But why have other sectors been left behind?
Extracting the waste from the system and improving services is key. People do have to be open and willing to change, staff need to be motivated to become engaged. This is the same throughout the public sector. Peter Vermeulen the deputy vice chancellor at Middlesex University has been working with various sectors directly, learning from them and their expertise and gaining good practices to boost productivity. If we look at construction, 98% of megaprojects face cost overruns or delays, the average cost increase is 80% of the original value and the average slippage is 20 months behind schedule.
Source: companies’ public annual records: IHS Herold Global Projects Database, 19.11.2013
How does this then feed into the day to day?
Furthermore, its fundamental that everyone is engaged and everyone is thinking about how to make improvements. Problems need to be solved at the lowest level of an organisation. The Workplace Research Foundation found that 38% of highly engaged employees have above-average productivity. By 2030, Rainer Strack (a human resource specialist) predicts that the demand for labour and labour supply will have a 20% difference to what it currently is. That means that 8 million jobs will be there but with no one to do them – increase migrations, increase retirement age, more women working. He believes we will face a global work force crisis consisting of a labour shortage, skill mismatch and cultural challenges.
Tuscor’s Top Tips!
Through 23 years of experience in shipping logistics, we have had a chance to work with many different industries. We welcomed challenges and managed thousands of various shipments to the world’s most inaccessible destinations. Our open attitude enabled us...