Comment: Let’s continue and extend support for electronics

An open letter to the next prime minister from Peter Brooks, CEO of the Electronics Systems Community

Dear next PM

Electronic systems underpin virtually every aspect of the modern economy. The UK sector comprises over 45,000 businesses, employs over one million people and adds nearly £100bn to GDP.

The Electronic Systems Community (ESCO), formerly the UK Electronic Alliance, is a partnership between government and industry which has produced some notable successes, although there are still issues of some magnitude to address.

In January this year No.10 hosted a round-table, attended by leaders from the electronic systems sector and representatives from the Department for Business, Innovation and Skills (BIS) to kick-start ESCO’s Trailblazer Apprenticeship programme. Within two months a new degree apprenticeship standard had been designed, specified and approved.

We believe that it is vital for the good work on employer ownership of skills and employer control of skills funding to continue if we are to have a skills system fit for the 21st Century and one which will enable us to compete on an even footing with the rest of the world.

Internet of things
Another area in which the UK can shine is the internet of things. We are working hard to ensure that not only the software applications and communications aspects are recognised, but that the hardware – the devices themselves – are given their true significance. Thanks are due for the £40m announced in the budget to support this activity and create two demonstrator sites – a great start.

Europe
The UK makes a substantial contribution to the funds of the EU and in one specific case we are not maximising our return on that contribution. The government has done an excellent job of supporting early stage research, but for electronic systems we are significantly behind competitor nations such as France and Germany in taking advantage of later stage European funding that is designed to help companies turn research ideas into products that generate jobs and growth.

The Electronic Components and Systems for European Leadership (ECSEL) programme is a €5bn (£3.6bn)fund which has been established to develop the electronic systems industry in Europe. UK companies can apply for 50% of the funding required for a project, but can only unlock the ECSEL funding (25%) if 25% is available from the member state; in our case via Innovate UK (formerly the Technology Strategy Board).

Investing in ECSEL therefore brings more of the UK’s investment in Europe back to the UK, and helps further exploitation of the excellent earlier stage funding we do.

Industry 4.0
Another area where your government could unlock private industry funds to match a public contribution would be for the next manufacturing revolution, Industry 4.0.

We believe that by building a Living Laboratory – initially to demonstrate to end users and other stakeholders the opportunities that Industry 4.0 offers, but later to expand this into a development and interoperability test facility for UK automation equipment – manufacturers could ensure that the UK is at the forefront of the development of industrial automation.

This will enable manufacturing industries to increase competitiveness and flexibility, bringing high-quality manufacturing jobs back into the UK.
Energy efficiency

One more area we’d like to bring to your attention is energy efficiency. There are major opportunities for this industry if government would help by facilitating the market and removing commercial and regulatory barriers. For instance:

• domestic buildings which account for 25% of the UK’s carbon emissions
• commercial buildings where energy use costs make up 20% of the average UK business overheads
• factories and industrial uses, where just under 20% of the UK’s final energy is consumed.

Through cost-effective investment in energy efficiency, by 2020 the UK could be saving the equivalent of the output from 22 new power stations.
We urge you to continue with this government/industry partnership working under the new administration.

Peter Brooks,
CEO of the Electronic Systems Community

What is the ESCO?
The Electronic Systems Community of trade associations and representative bodies provides a forum for the electronic systems community to address issues and a two-way communication channel with government departments.

The ESCO executive committee includes Baroness Neville-Rolfe, Minister of State for Intellectual Property; Warren East, former ARM CEO and now CEO of Rolls Royce; and Sir Hossein Yassaie, CEO of Imagination Technologies.

See also:  Stem the tide of our worsening tech skills gap An open letter to the next Prime Minister fromWendy Devolder, CEO of Skills Matter

and

Don’t ignore manufacturing, it matters An open letter to the next Prime Minister from Adam Fletcher, chairman of the Electronic Components Supply Network (ECSN)

sue proud

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