The manufacturing sector employs a total of 2.7 million people in the United Kingdom alone. With the average salary reaching £32,500 per year, it’s no surprise why thousands of skilled workers are drawn to manufacturing industry each year. Boasting an “above average salary” and a wide variety of job progression routes, these positions are now in huge demand from both UK residences and those overseas.
Unfortunately, the majority of manufacturing processes require the use of heavy machinery and specialist equipment, resulting in a huge increase in risks compared to desk-based job roles. In the following article, we will be evaluating the risks involved with the manufacturing industry with the goal of helping both employers and workers better protect themselves.
The United Kingdom’s Manufacturing Industry
Despite the slight decline in the 1940s, the manufacturing industry has grown at a rate of 1.4% per year. Now considered to be a highly valuable source of income for the United Kingdom’s economy, the manufacturing industry generates around £400 billion each year in taxable product sales. Whilst service-based income still holds around 70% of the distribution of gross domestic product, manufacturing holds a huge per cent of industrial generated taxable revenue.
Common Risks In The Manufacturing Industry
Due to the nature of manufacturing, risk will always be a factor you have to manage. These risks come in two main forms, the risk posed to the company employees and risk to the company as a whole. In the following section, we will be advising some of the best possible solutions for effectively managing this risk
Risk Assessment – Company Employees
A manufacturing company’s employees are the beating heart of the production line itself. The vast majority of manufacturing businesses are not fully automated and require human interference in one way or another. Every manufacturing business varies but wherever there is human interference there will be a risk. Whether it be slips, trips and falls or the misuse of heavy equipment, managing this risk is essential for maintaining a healthy and happy workforce.
The Solution – Protective Equipment
Employing suitable protective equipment and an adequate health and safety policy will help ensure that risk is minimized within the workplace. It’s practically impossible to completely eliminate risk but by educating staff about the potential high-risk areas and what can be done to help prevent accidents, your business is in a much better place than companies that do not put the health and safety of their employees first.
Risk Assessment – Company-Wide
It may sound a little strange to be discussing the company-wide risks within this article but this is definitely something we need to consider. At a moments time, a claim can be made against the business which can lead to hundreds or even thousands losing their jobs. Claims are one of the most common risks for any manufacturing business but there is also a certain level of risks surrounding managing a company’s cash flow.
The Solution – Financial Protection
It’s essential for all businesses operating within the manufacturing industry to have the correct level of cover in place. By investing in a manufacturing insurance policy you gain protection against claims made against the company and any financial loss generated by these claims. Insurance will also cover the legal costs of protecting your business if the claim is taken to court.
Manufacturing Workers Risk Assessment Summary
The manufacturing industry continues to account for 45% of global exports and 69% of research and development making it one of the key pillars the UK’s economy depends on. Managing sector-wide risk is essential for ensuring the long term success of this sector enabling it to continue growing and supporting workers.