£30m saved as waste cut and productivity goes up

Sep 17 2009 by Andrew Mernin, The Journal

A PROJECT launched last year to help manufacturers cut wastage and boost productivity has enabled North East firms to save £30m in 12 months, it was revealed yesterday.

The Manufacturing Advisory Service North East (MAS NE) was launched last autumn as a £30m, five-year plan to help manufacturers and has since assisted 543 companies in the region.

On average, MAS NE’s intervention in businesses has resulted in a 25% climb in productivity, a 26% rise in on-time deliveries and a 33% increase in stock turnover.

After leveraging £32m of European funding into the project since its launch, regional development agency One North East yesterday said a further £1.5m would be pumped into the scheme to extend its focus to cover waste reduction and renewable energy.

Regional Business Minister Rosie Winterton was in the region yesterday to see the work of the project at close hand as she visited medical devices maker Rocket Medical in Washington.

She said the Government was keen to continue its to support manufacturers to ensure they are well place to prosper when the dark clouds of recession shift.

She said: “The Government is keen to work with the manufacturing industry to help them to improve productivity and that’s why we have assisted programmes like this that have looked to try to develop it with organisations like One North East.

“Looking to the future we want our manufacturing industries which is the back bone of our economy to be in the best possible place to take advantage of the recovery when it comes.”

The Minister also praised the work of Rocket Medical, which she said was leading the way in product innovation and design. MAS NE is currently working with 60 firms across the region providing practical advice and guidance to boost productivity and generate efficiency savings.

The scheme’s first annual results show that businesses have made £21.1m productivity savings, including working capital reductions and energy procurement savings.

Meanwhile, energy usage reduction savings total £6.8m – the CO2 equivalent saving of 39,000 tonnes per year. MAS North East is an amalgamation of MAS (Manufacturing Advisory Service) and NEPA (North East Productivity Alliance), which were combined last year.

Rocket Medical employs 106 staff at Washington which is the manufacturing arm of the family owned business founded in 1964, with its head office in Watford.

It makes cardiothoracic, infertility treatment, radiology, drainage and surgical instruments, with a predominantly UK-based marketplace, but also exporting to more than 80 countries.