When manufacturers start to think about IP and manufacturing, the default setting for many is to think of patents, which can be very costly. The second option is to claim 'we don't do IP' and use the ostrich method of burying their heads in the sand and hoping it will go away instead. 

So why is it so important for manufacturers to focus on IP, I hear you ask? Well, with such high value manufacturing taking place, it is important to protect your ideas, your products and your business. A lot of patents are filed in manufacturing for this very reason, but IP is a lot broader than just a patent and this is what we need to understand. We need to look at how IP can be used to further the growth of UK manufacturing, as a lot of value can be attributed to what makes a product unique or distinctive, be it in a process or a programme.

In practical terms there is a lot of value in the less tangible parts of the manufacturing process which can be hard to leverage to secure finance. Automation packages today typically see 70% of their costs accounted for by bespoke solutions and software and as little as 30% in hardware, making them hard to finance through conventional means, such as asset finance.

Even the most progressive of finance companies, who are putting together packages that help towards this sort of investment are clearly going to be pricier than a straightforward asset finance deal, because there is, from their point of view, more risk there. If the Government could underwrite some of that risk we could reinvigorate the way banks invest in manufacturing. 

Now, there is no denying that we need to explore this aspect of financing and give banking institutions the evidence required to take this seriously.

This is not just about what others can do for us, but how we – UK Manufacturing – can help ourselves. Companies large and small need to understand the value they hold. They need to realise the importance of Intellectual Property Rights (IPR) in relation to manufacturing. The so-called 'creative industries' (entertainment, music, film, sport, and so on) act to protect their IP and secure help from Government for it. But where is the voice of the original 'creative industry' – manufacturing – in this debate? If we fully integrate IP management into businesses strategies we can start to access the benefits it could bring.

There is no one solution we can offer when proposing to reindustrialise this country. But the forces that could drive it are taking hold rapidly all around us. We need to be ready in anticipation of this change.