Page 2 - Industrial Technology magazine February 2021 issue

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BREXIT BRIEFING

Brexit Briefing is a special edition of Industrial Technology EXTRA – our interactive electronic
supplement to the printed edition of Industrial Technology. Brexit Briefing brings you right up to date
with all of the changes that arise from the UK withdrawing from the EU, covering the details of the
trade agreement that will impact on UK manufacturers, and identifying areas where UK companies

can steal a march on their competitors. It also provides essential business information to help
companies plan and strategies for the year ahead.

Contents include: WINTER 2021
l Unravelling the rules of origin for manufacturers Industrial EXTRA!
l Workplace predictions for 2021 Technology
l Reshaping post-Brexit Britain
l Are you in the dark about your energy usage? BREXIT BRIEF
l Report uncovers losses in so-called 'hidden factories'
l Post-Brexit compliance for CE-marked products
l Making savings to secure the future ORIGIN OF GOODS
ORIGIN OF GOODS
l Hidden supply chain costs damage profitability IS KEY CHALLENGE
IS KEY CHALLENGE
l Economic predictions for 2021 TO OVERCOME
TO OVERCOME
l And much more

Optimised for viewing on screen, the publication
can be downloaded in PDF format, on our Flipbook
library, and is available via the Industrial POST-BREXIT
Technology app. You can download the Industrial COMPLIANCE
Technology app both for iPad and Android FOR CE-MARKED
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BREXIT BRIEFING BREXIT BRIEFING
BREXIT BRIEFING
good being exported back to the EU. All Every organisation can make Time running out for decarbonisation
taken into account when determining origin.
BREXIT BRIEFING Let’s look at some examples. If you’re a UK cumulation agreement, the battery packs operations carried out in the UK or EU are Insufficient BREXIT BRIEFING savings to secure their future Siemens has published advice for businesses on steps they can take to decarbonise
could imported from the EU, incorporated
BREXIT BRIEFING
company manufacturing fruit smoothies, the
into a UK manufactured vehicle and then
Processing must be more than the
commodity code is 2009. The origin rule is
Unravelling the rules of Change of Tariff Heading (CTH) – ie it has to Evidence of origin is different to other UK Processing Article (Article ORIG.7). sourced from outside the UK or EU without production records, supported by a BREXIT BRIEFING GLOBAL OUTLOOK 2021 BREXIT BRIEFING New research from PA Consulting shows OPTIMISATION PERFORMANCE BY RANK there is a growing urgency for businesses to
processes
listed
Decarbonisation is a clear global target and
exported back into the EU.
in
the
smoothie and just adding some sugar or Evidence of origin
change first four digits. If you’re importing a
act. If they don’t, they risk exposing
EXAMPLE 3: FOOD AND BEVERAGE
Big data dissatisfaction is
trade deals. Because of the volume of goods
EXAMPLE 4: AUTOMOTIVE PRODUCTION
themselves to potential risks from policy-
adding a little bit more fruit, then it wouldn’t
l A tin of chopped tomatoes processed
qualify for a change of tariff heading. But if
origin for manufacturers you’re sourcing all the raw fruits, they would this as simple as possible. There will be no Similarly, in agri-food goods where you have at a 50% MaxNOM rule, for instance, if you’ve WORKPLACE PREDICTIONS FOR 2021 driving demand at the Edge ECONOMIC PREDICTIONS FOR 2021 have a significant opportunity to reduce costs 2. Life sciences costs. In addition, decarbonisation is not just business
affecting the rule of origin.
driven increased operating costs, increased
l A diesel engine manufactured in the UK
involved, efforts have been made to make
organisations across a number of key industries

in the UK

1. Automotive
supplier’s declaration if required. If we look
energy costs or increased compliance
got parts and components that are less than
requirement for an EUR1 Preference
an objective imposed by policies such as the
fall under Chapter 8, and they are going to
Paris Agreement: with the right approach,
be sufficiently processed, and the finished
50% and the rest of the value is made up of
a rule of origin that means the goods have to
Certificate to be issued for movement of
GLOBAL OUTLOOK 2021
3. Industrial engineering
be wholly produced, if you still have to
product would be classified as 2009.
profit, labour, manufacturing costs, then
goods between the UK and EU. Instead, the
also
creates
tangible
After enduring its deepest recession in 74 years in 2020, the global economy is expected
As organisations look to position themselves
The Workforce Institute at UKG released its annual predictions of the top trends that will
it
source some of that product from outside the
4. Energy and utilities
The agreement of a trade deal between the UK and EU will have come as an enormous In this example, you could import fruit from trade agreement allows the use of two UK or EU, provided that its less than 15% by you’re not really going to need a supplier’s 2020’s legacy will be one of immense imperative to drive true engagement – one complex compliance landscape: Labour BUSINESSES COVID CASES IN EMERGING MARKEKTS (TO NOV 2020) Frost & Sullivan’s recent analysis, Growth to rebound in 2021, acc
organisation and govern-
processes,
different types of evidence – invoice

weight of the final product, that will not affect
relief to manufacturers, but the new rules of origin represent somethng of a maze. Here,
research from PA Consulting, the global
declaration. It’s only where you’re exceeding
financial savings.
impact the global workforce in 2021, highlighting five key opportunities in the workplace
Growth is forecast for the UK,
Demand for low-latency real-time insights is seeing increased demand for Edge
1
methodologies. Falling short
innovation and transformation consultancy,
the 50% that you would need a supplier’s
the rule of origin.
ANDREW THURSTON, customs duty consultant at MHA Macintyre Hudson, navigates us

FIND NEW WAYS
A successful, widespread Covid
declaration or importer’s knowledge.
the EU under bilateral cumulation, and they
vaccination program is expected
These include increased brand reputation,
disruption, but following disruption always

declaration to evidence that.
6. IT and telecommunications
could be included in the UK origin because
in even one area can limit an
In emerging markets, where inflation is a
shows that leaders across sectors have an
organisation’s
With the invoice declaration, a statement of

that not only defines and differentiates an
TO INNOVATE IN
GDP growth is projected to be near 3.0% in
untapped opportunity to significantly reduce
through the detail of these complex rules that manufacturers will need to understand
comes the opportunity to refocus and
7. Defence and aerospace
analytics – a market that Frost & Sullivan says could be worth some $1.18bn by 2025
more immediate concern, monetary easing
laws, workplace rules, migration policies,
there is a change of tariff heading. The
There are some exceptions to manufactured

to enable a transition to post-
organisation’s employee experience, but
reinvent. So said Dr. Chris Mullen, executive
customer preference over competitors and
2021, with greater downside risks.
but below the global average
is ending but policy rate increases will be
regulations will keep evolving.
declaration, the UK exporter needs to state
goods. Textile and clothing products
classed as a UK originating product. The
minimum wage, and Covid-19-related

have paved the way; Now it’s time for other

only potential issue would be the sugar
Europe’s 2021 annual growth

u Origin rule: Production in which all
classified under HS50-63 are subject to
basis
l A mixture of drive fruit and nuts produced
uncertainty. Trust will also extend to
rapid deployment of effective vaccines and
their EORI number, while EU exporters
9. Transport

materials of Chapter 7 used are wholly
rates are expected fall short of
businesses to follow suit.
in the UK
With GDP forecast to contract across the
COVID CRISIS
unleash a new wave of spending on travel 5
customers and communities.
Market, Forecast to 2025, finds that
reopening of economies should gradually
“While the Covid-19 pandemic was

content (under Chapter 17): any non-
require registration for REX (Registered
unimaginable just a year ago, our 2020

globe and as organisations grapple with the
The trade agreement between the UK and smoothie can then be exported to the EU origin is included by the exporter. On the u HS code: 2002.90 u HS code: 8408 specific tolerance thresholds, when are EXAMPLE 5: FOOD AND BEVERAGE director of The Workforce Institute at UKG. also unlocks an ability to embrace regulations to be put forth to do what is right THE FACE OF THE Opportunities in the Global Edge Analytics pandemic economic growth of 4.5%: “The rare in 2021. The global financial sector
PA’s research identified that

Organisations do not need to wait for
10. Government and public sector
obtained
u Product: Diesel engine
originating sugar content cannot exceed
and services, driving robust growth in the
EU has introduced new rules for exporters of
should avoid major crises next
challenges of the Covid-19 crisis, the

detailed in Notes 7 and 8 of Annex ORIG-1.
predictions – anchored by themes of
related
the weakest areas across
Dissatisfaction with Big Data Analytics (BDA)
l Rule requires tomatoes to be produced in
and
Exporter status). There is currently no
Technical advancements such as digital
year: In advanced economies,
is increasing the uptake of edge analytics
wellness, advocacy, and empowerment –
Organisations will explore new avenues to
containment

for their workforces. By exceeding the
by
goods, with a requirement to retain 40%. If you’re importing large quantities of monetary limit. the UK l However, with cumulation, a UK producer Tolerances are an important tool for rules of now seem serendipitous. support the unique needs of their entire baselines Morgan Stanley projects strong global GDP growth of 6.4% for 2021 – led first by The international outlook for R&D is solutions across industry verticals. Frost & later part of 2021,” said Sara Johnson, expansionary monetary policies
removing
emerging markets, followed by reopening economies in the U.S. and Europe – in a
created
costs
of
sugar from outside the EU, if 40% by weight
u Origin rule: MaxNOM 50%
analysis,

recent
l Maximum 50% non-originating content
comprehensive vision for managing costs
satisfactory evidence of origin. This is of the smoothing contains non-originating The second option is importers knowledge. can import EU tomatoes and process them might not look as though you will meet the “Organisations and their people are now and best position themselves as a organisations can free themselves from promising despite strong headwinds, Opportunities in the Global Edge Analytics Growth IHS Markit. “After a 4.0% decline in 2020, the expected to keep term debt costs sharply business
origin, because where in some instances it
workforce, mitigate the effects of burnout,
governments,
executive director for global economics at

have made decarbonisation more feasible.
Sullivan’s
recovery early in 2021. Lagged increases in
The this allows an importer to claim a
something that’s additional that companies
(parts)
according to research by Ayming Group.
macro outlook that diverges from the consensus. But the UK is some way behind
who manufacture goods or send goods
solutions to go beyond just monitoring a
sugar, then it would not qualify.
destination for talent. Those that do will give
decarbonisation strategies, Siemens has
achieve carbon ‘negativity’ on the supply
for benchmarking cost reduction). This is
global economy is expected to expand 4.5%
forecast to restrain growth as policy support
into chopped tomatoes
when it is established as an every-day activity
rules of origin, being able to factor in
chasing a constantly moving target; instead,
a survey of 180 industry leaders across ten
lower. More fiscally constrained emerging
they can focus squarely on creating finely
preferential duty rate based on their own
side, which is used to offset carbon from
concerning because both areas were also
published a new whitepaper suggesting a
doing things they once thought impossible,
and not as a loose set of actions to take in
l However, with cumulation, EU content can
across the border will need to have in place,
Ayming’s second annual International
markets will rely heavily on forbearance
sectors, demonstrates that every sector has
Market, examines the key competitors in the
next year, with global output expected to
facility’s equipment. With the right control
be counted as originating
back to the EU as a UK originating product
earn it. They will transform process and
presenting a small silver lining to a year we’d
R&D departments are being empowered
engaged workforces that have an advantage
l If less than 50% of the ex-works price is of

forecast analysis by region and industry
imported products. This might apply if you’re
vaccine-driven pick-up in eurozone growth
economic rebound takes hold. However,
which they might not have the facility to do EXAMPLE 2: AUTOMOTIVE PRODUCTION knowledge about the originating status of l The finished product can be re-exported tolerances might be enough to sway the u HS code: 0813.50 showing incredible resiliency and creativity, trust to employees instead of making them tuned operations powered by highly MORGAN STANLEY REAL GDP GROWTH FORECASTS Innovation Barometer (IIB) reveals that edge analytics software market, revenue reach a new peak.” A measures to contai
product to classify as being of UK origin.

policy to imagine what’s possible when you
otherwise wish to forget. As we look ahead
vertical, and much more.
significant energy savings, while modern
in recruiting top talent.
tap into new revenue streams from the
rising public and private debt burdens could
impact – for example, cutting head count in
rates from mid-year. Eurozone real GDP is
Rising Covid-19 case numbers in the US and
success. Their relevance and current
l Hybrid motor vehicle manufactured
neutrality. These are grouped into three
competitive advantage. The automotive
at the moment. in the UK shipping under DDP terms: you’re the non-UK or EU materials then it will qualify Let’s consider the production in the UK of u Origin rule: Production in which i) all the at 2021, workplaces everywhere will be assume good intentions. They will achieve Europe make it difficult right now to envision 2020E 2021 2022E by the creation of innovation ecosystems, the 2 economic recove
timeline
as UK origin
divergent
importer, you’re claiming the preference, you
and
side, actions on the energy demand side and
and how it reacts to load changes.
The agreement allows for both UK and EU would have knowledge of how that product Let’s consider a tin of chopped tomatoes, 0813.50. The rule requires the nuts and fruit obtained, and ii) the total weight of non- presented with the opportunity to take the elevated experience as a stakeholder in the As part of this, organisations should consider MS MS Consensus MS Consensus 3.7 deployment of technology. US CORE PCE INFLATION
methods,

return to pre-pandemic levels not expected
funding
more because employees will enjoy an
terms of cost optimisation.
mixed fruit and nuts, with an HS code of
a return to normal. Yet, even as the pandemic
an organisation is at all six dimensions, the
materials of Capter 8 used are wholly
l Purchase zero-carbon electricity. This
new
to economic growth varying
drags on, the global economy has proven
Demand for machine intelligence (MI) and
l The finished product can be exported to
goods to be counted as inputs from the other
originating materials of headings 17.01
was built up for the rule of origin, so you
compliance as a piece of their overall
significantly reduces direct emissions,

suppliers or signing power purchasing
party when assessing the origin of goods.
lessons learned from the last year to
business.

artificial intelligence (AI) applications at the

where the raw tomatoes are processed in the

the EU as a UK originating product
Finished goods prices are
DEVELOPED MARKETS -5.4 5.1 4.2 3.9
remarkably resilient. Following a steep

rule you can have 15% of the weight made
Full bilateral cumulation will be applied, as could use importers knowledge rather than UK. In this instance we have to look at the 6- to be grown in the UK, but with the tolerance and 17.02 does not exceed 20% of the reimagine a better world of work for the Compassionate and inclusive engagement strategy, identifying work GLOBAL -3.5 6.4 5.4 4.4 2.7 3.0 R&D teams remain resolute in the face of edge is driving the mar
weight of the product
decline in early 2020, the world economy
several key obstacles. Not only has
digit tariff code, 2002.90, with the origin rule
future.”
analytics. By 2025, the global edge analytics
rode a rebound that began in May and
processes that will empower employees with
up of non-originating fruit. So you can bring
recoveries to pre-pandemic levels are

Increases in commodity prices in
Successful organisations are simple,
accelerate to its strongest
steps will typically be overarching and
was expected as part of the trade deal. So As part of the trade deal there is being production in which all of the materials in nuts and fruit from outside the UK or EU, l The tolerance rule permits the use of non- 1 The Great Reset: Work will be 3 management that puts employ- control of their own destiny while still meeting United States -3.5 5.9 3.8 4.1 2.8 1.5 Covid-19 caused expectations for budget software market is est
generator leveraging the guarantees of origin
the statement of origin.
charging solutions.
where goods are purchased, for instance,

l Rule requires the nuts and fruit to be
Let’s now consider the manufacture of a
growth rate in recent years but
increases to decline 12%, but complexity
forecast to take until 2023 or 2024 in Japan
remains on track to surpass prepandemic
Euro Area -7.2 5.0 5.2 3.9
creating a flat organisational structure. A
GDP levels by the end of this year – setting
from Germany, to be incorporated into a UK
nearly five-fold growth, garnering a revenue
ees’ lives ahead of work will
to any energy savings that are a result of
used are wholly obtained.
grown in the UK
and provided it makes up less than 15% of
diesel engine with the HS code of 8408.
l Deploying energy storage on its own is
and several major European economies.
the needs of the business.
(re)shaped in real time as
Under cumulation, any EU content can be
is making it increasingly difficult to
simple business design makes it easier to
specialist internally, to ensure a realistic
finished product, provided there is sufficient
not necessarily providing carbon savings but
of $1.18 billion from $254.8 million in 2020.

downstream for the next six to nine months,
responsibility on both parties to provide
adjustments in parts of a production
UK -11.4 5.3 5.5 5.5
international
successfully,
organisations decide which
and emotional safety, mental wellness, 5

the weight the finished product would still
counted as originating, but in addition parts
originating ingredients
become a leadership mainstay. Physical
lowering
the stage for strong growth in 2021.
processing carried out, these can be
for
example
especially practical AI and

Edge analytics software analyses data on the
In the second half of 2021, consumption
from all over the world can be incorporated
don’t have to be sourced in the UK, they can
vaccines and pent-up demand will help the

collaboration is proving challenging.
device, reduces latency, eliminates the need
implemented.
on the verge of the Great Reset. The
for origin purposes.
patterns are expected to shift back toward
burnout, depression, isolation, social unrest,
Western Europe is expected see a rise in
In its 2021 outlook, the economics team at
Automation and FogHorn Systems. Other
optimisation asset (for example optimising
included as inputs for determining the origin u HS codes: 8702 to 8704 mutual assistance to monitor the evidence Bilateral cumulation means the tomatoes meet the rule of origin. l Total weight of the non-originating fruit or pandemic-era practices stay and go. We’re and political turmoil have weighed heavily on Expectations of technology, Japan -5.2 2.4 2.5 2.4 3.0 4.5 5.4 innovate competition for talent is
Chinese economy expand 7.5% in 2021, its
be brought in from the EU, processed
various functions in an organisation and to
EMERGING MARKETS -2.0 7.4 6.3 4.7
compromising overall process quality.
market vendors include Swim.ai and
identify potential cost savings.
into the engine, and as long as that is less Evidence of origin
Guavus.
Morgan Stanley Research says the V-shaped

advantage,
l Align energy KPIs with business KPIs to
nuts cannot exceed 15% of the net weight
for large amounts of data transfers, maintains
highest rate since 2013. After the cyclical
u Origin rule: MaxNOM 45% (EXW) and
asset, which they can leverage to create a
automation, will be higher than
power flow of on-site generation).
of the goods for UK purposes. They can then battery packs of heading 85.07 of a kind Under the UK/EU trade agreement, bilateral sufficiently to change the tariff heading, and Evidence of origin is different for wholly of the finished product circumstances of 2020 brought out the everyone. While businesses have done more ever. The pandemic has ushered in new China 2.3 9.0 8.0 5.4 5.6 However, advances in technology are ef
joblessness as public funding of furlough
be re-exported back into Europe as UK-
Bilaterial cumulation
than 50% of the ex-works price, the engine
recovery that the team forecast in its 2020
then exported to the EU as a finished product
than ever before to protect workers, their
to the deceleration path that began in 2012,

measuring
technologies that have reshaped our
considered
creativity and resiliency of workplaces
energy tariffs, while on-site generation on its
when

will qualify as a product of UK origin.
goods industries could see conditions soften
used as the primary source of electrical
midyear outlook is now entering a new self-
originating goods. power for propulsion of the vehicle must cumulation has been accepted. This covers, of UK origin. Tolerances produced goods and sufficiently transformed But care must be taken because this is worldwide, as many businesses did things families, and the broader community, cracks more pressure on organisations to deliver a India -5.7 9.8 8.3 6.0 2.5 2.3 empowering R&D professionals, who see customer
Brazil -4.0 4.3 3.5 2.7
personal and social lives. This will put even
disruption,” said Anisha Vinny, program
Supply chain disrup-tions should also slowly
it as the most important driver of
SiSense and NVIDIA are still piloting edge
sustaining phase and is on track to deliver
they once thought impossible. With months
goods. For wholly produced goods, there
Challenge
seem
6.4% GDP growth in the coming year.

Determining origin l Rule requires a maximum of 45% (by for example, UK origin parts being exported One of things to consider in the rules of needs to be a statement of where the goods something that HMRC will look at and will try of data to analyse the impact of actions, over run more deeply each month. matches workplace technology experience that Russia -4.0 3.4 3.0 3.2 innovation, selected by 39% of survey manager for infor
to the EU for processing, and EU finished
may
methods
be originating
chain
supply
the
the impact of climate change,
technologies at Frost & Sullivan.

optimising with other energy elements, from
energy.
To determine origin, you first need to know value) of non-originating materials to be product incorporating that UK origin being origin is tolerances, which can be used to vessel used has to be registered in the which are not. If you’ve not got a supplier’s organisations decisions make conscious about policies, and Organisations that will excel in 2021 will be technology experience. “This projection stands in stark contrast to synchronised global growth, an emerging- The stage could be set for another su
have been grown or reared. For fish, the
employees’
the next year we’ll watch in real time as
their

shipped back to the UK. In that case, the
however, they have not been included in the
the first six digits of the tariff heading of the
consumer
to work out which parts are of UK origin and
deliberate
used and battery packs must be originating
a march on the competition.
finished product would be specified as being
l Support customers to decarbonise,
technical
holistic solution provided by microgrids. This
continue next year: “We expect to see
beginning in the second quarter of 2021.
particular product. If you don’t know that,
led by compassionate and inclusive
product portfolio to include edge analytics
the consensus, which forecasts 5.4% global
involves power generation with low-carbon
maintain rule of origin even when some parts
nature
of
weaken in 2021: A lagged
R&D
beneficiary country and has to sail under its
flag or an EU member state.
market rebound and the return of inflation.
technologies like solar PV, wind power,
Microsoft, and Amazon Web Services (AWS)
businesses are looking for outside
response to the Fed’s sharp pivot
growth and worries that the pandemic will
can also be combined with energy tariffs
continued scrutiny of the ESG contributions
have to be sourced from outside of the UK or
you need to refer to the customs tariff.
start 2021 slowly, accelerate in
declaration and you need to have one, then
Initially, emerging markets will likely drive

leading to overall less carbon related to
operational
the second half: If another modest
Although in most cases it is only four digits
Global
Wilcox,
be imported for the use in the UK
surveyed by Frost & Sullivan claimed that
manufactured goods under the sufficiently
from winter lockdowns, developed markets
years’ worth of digital transformation in mere
wellness, and belonging. An intentional
approach
calculation if used in or assembled onto
development kits to support the developer
because the original export into the EU
strategists urge investors to trust the
rather than moving data to a central hub for

resources up from 35 to 48%. Collab-
There is a transitional period at the moment
investigating and utilising data is a top
have a bigger impact on private-sector risk
analysis.
to
l Shift to low-carbon heat. This can result
appetite and, hence, global growth,” says
economy will expand 9% in 2021, before
would have a statement of origin as well,
understanding
and carbon savings.
recovery and overweight equities and credit
transformed rules, up to 10% by value can be
They will move beyond reacting and begin to
highly successful Covid-19 inoculation
business priority. Cost reduction is cited as
oration may be down, but a new
of sustainability-linked issuance,” continued
that are needed, there are circumstances l Cumulation allows EU originating goods to of EU origin, and there would be no duty EU. For example, where we are looking at With sufficient transformation, evidence it’s something you need to put in place. processes, and practices. management that emphasises empathy, unique While many organisations have undergone Against this macro outlook, Morgan Stanley global GDP growth; then, as they emerge support, with use of external private Emerging markets lead the r
an increase in investor risk tolerance and a
Edge
ecosystem

could add to that momentum. “By March or
Chetan Ahya, Morgan Stanley’s chief
PA Consulting says: “A new ‘always-on’
months, emerging technologies face a day

where you’ll need to go to the 6-digit heading There are some exceptions where the rules EXAMPLE 1: FOOD AND BEVERAGE stating that they are UK origin parts. you don’t necessarily need to have the refocus and reinvent. Which pandemic-era result in foundational solutions built on of reckoning: the focus on AI’s overhyped versus government bonds and cash. April, we expect all geographies and all outsourcing hybrid model is emerging faced numerous cyclical challenges in recent Nonetheless, every recession lea
Emerging markets, excluding China, have
in a drastic decrease in emissions.
community in creating edge analytics
widening trade deficit is expected to drive
challenges specific to their own business will
collaborate to push the technology forward
whereby, if you’re using existing suppliers,
the finished vehicle
Johnson. “Meanwhile, policy support for
Actions on the energy demand side: A key
solutions.
would include the bill of materials or
economist. “We maintain that consumers
a strategic priority by 78% of business
whereby big companies create an
toward
moderating
5.4%
to determine the rule of origin.
supplier’s declaration from day one, but it is
leaders, while 72% are willing to invest in

year real GDP growth is expected to exceed
across industry verticals and locations.
will be translated into carbon savings and
diversity, equity, and fairness. Returning to

and declining costs for wind, solar and
challenges that the energy industry is facing
promises that may never come will be
strategy will depend on a clear vision and
have driven the recovery, and investment
policies will stay and go? Which will be
l Fruit smoothie produced in the
organisations emerge stronger and ready for
sectors of the global economy to be joining
growth – a reflection of the private corporate Global growth in sync
non-originating materials, or where some
technologies that could reduce spending.”
There are two conditions that determine of origin set a maximum limit on the value of UK using fresh fruit from around In our second example, let’s look at the This allows the reduction in any customs something HMRC will be looking at going refined? Which “old ways” of work will come the status quo will be insufficient. replaced by a demand for practical AI and World economies rarely move in lockstep. In the recovery,” says Ahya. innovation ecosystem with smaller ones. years. Now, with more favorabl

forward.

back? The answers may take years to
automation use cases that have an
probability of growth reaching above 5.0% in
and Latin America (NALA) region, led by the
dynamics in many developing nations,
the return of inflation. “When it comes to
sector's risk tolerance and a key feature of
Edge analytics solutions utilise devices such
energy transition and restrain hydrocarbon
origin, and it depends on the type of goods: tariff headings allow a qualifying process to the world, seasonally sourced manufacture of an electric or hybrid motor duties crossing borders where there are EU solidify, which illustrates the true future of immediate impact on their people and The funding landscape has also emerging markets could set the pace for inflation, we see a very different dynamic There is a consensus that a single vendor demand and prices.” the second half of 2021. against s
wholly produced or sufficiently transformed. be carried out, even though some or all of u HS code: 2009 vehicle, covered by HS codes 8702 to 8704. and UK products. I expect that there will be quite a lot of activity work will be steeped in the ability to embrace Lastly, an influx of new Gen X CEOs and operations. any self-sustaining recovery – is bouncing fact, a synchronous global recovery, where The US economy, for its part, has stayed diversified. Incentives remain crucial, with global growth.
growth in both developed and emerging
Here we must not exceed specified
analytics solutions, accounting for 59.3% of
resilient through the pandemic. Consumer
continued high current account surpluses
collaboration is becoming the key to market
identifies ways to increase margins, gain new
high temperature heat pumps depending on

the parts have not changed tariff heading.
clear commitments and a dedicated budget
Wholly produced goods are those which are Certain processes are said to be minimal and u Origin rule: CTH, provided that the total maximum amounts of non-originating Full bilateral cumulation allows an exporter in terms of mutual assistance to get things For this Great Reset, the triumvirate of the and thought – to executive suites. More Boomer Successful AI deployments will unburden markets accelerate in the same year, has spending has nearly returned to pre-Covid R&D tax credits most popular at 4%
CXOs will bring diversity – in gender, race,

as routers, sensors, integrated access
forms of increasing energy efficiency in a
uncertainty.
already well into their recoveries, while in the
material. So where you’ve got an ex-works
weight of non-originating materials of
grown or dug up from the ground in a
back as well.”

both to use originating materials and
Monetary policies should remain

Three key factors will characterise the next
Baby
presents an opportunity to rejuvenate an
East, and Africa (EMEA) region is the
applications remain overcomplicated – a
large, arguably more domestic demand-
levels, while average personal incomes of
yen should benefit from strengthening
happened only a dozen times over the past
(for example moving from natural to “green”
headings 17.01 and 17.02 used does not
member state of the EU. The term thus
clear way up to the C-level for all aspects
$900 billion would be expected to raise full
than
their
diverse
up and running and to get everything
from a basic upgrade to LED lighting to a
embraced this concept.
second-largest revenue contributor in the
the United States, Eurozone, the
managers and empower employees. They
organisation – increasing collaboration and
gas).
40 years – the last in 2017.
more sophisticated upgrade to electric
particular problem for SMEs with limited

relating to decarbonisation, beyond just
evidenced properly. So you could find that
products, and to carry out processing or
exceed 40% of the weight of the product
applies mainly to products which occur
price of, say, £100, provided less that £45 of
year US GDP growth to more than 5.0% next
levels in September, even after the first round
stage of the V-shaped recovery, says Ahya:
renminbi is forecast be supported by
unemployment spike to levels not seen in
means that even if a EU intermediate product
production. These include:
heralds of cultural change.
R&D themselves, so these challenges
MS FORECASTS GLOBAL SYNCHRONOUS RECOVERY
originating material, then it would qualify.
stimulus, and if lockdowns are implemented
that protect their people and their bottom line
naturally and to goods made entirely from therefore cannot be used as sufficient l Rule requires all non-originating raw that ex-works price is made up of non- production on non-originating materials. It your company is visited by HMRC in the CEO, CFO, and CHRO developing policies predecessors, they will be embraced as will help gauge sentiment and accelerate US households surpassed prepandemic resources. SMEs often cannot finance oriented economies, like India and Brazil, a Put simply, the pandemic has
number of indicators have recently exceeded

industry verticals, the manufacturing sector
significant impact in the overall success of
facility, or improvements in the efficiency of
ways. It changes the way organisations think
decision-making for everyone. Organisations
materials to change tariff heading
to contain the latest surge of infections, real
those products. the products remain in good condition l However, any non-originating sugar With this particular rule of origin, it adds in is not itself deemed as originating from the you’re doing things correctly. a competitive edge. 4 Outside forces – including the and (and their employees) will pay closer atten- suggest a sustainable US recovery, with have caused a jump in private funding, positive year-on-year growth.” generations, and policymakers are expected leads the way, followed by energy
pre-COVID-19 levels and are registering
mainland China’s accelerating economy and
of fiscal support expired. These factors
markets, ie generate excess electricity that
medium term, to check origin and to check
l Preserving operations to make sure that
remain near or below zero well beyond 2021.
EU, UK firms can count the EU value-added
to do whatever it takes to create jobs and
while moving the business forward will gain

with equity/debt funding up 6%, and

pandemic,

economy,
Products outside of these food and l Breaking up and assembly of packages l If the above is met, then the finished that the battery packs have to be of in that product when using the input in a final 7 There are two types of supplier’s declaration. Trust will become a foundational regulatory change – will push demanding significant value from systems crowdfunding up 17%. Morgan Stanley economists expect this return employment to pre-Covid levels as To capitalise on the immense growth Discret
logistics.”
projected GDP growth of 5.9% in 2021.
during transport and storage
content must not exceed 40% of the weight

tion to current and prospective technology,
agricultural sectors are classified under
quickly as possible – even as economic
sufficient production). There has to be some
while ensuring they measurably enhance
One is a single declaration that covers one

Logistics: Growing investment in auto-
performance, productivity, and the overall
reimposing Covid restrictions in October as
isations. While some organi-
uncertainty created by the pandemic,
sufficient transformation of the raw materials l Washing, cleaning, removal of dust, product is a UK originating product originating nature. But with the bilateral INDUSTRIAL TECHNOLOGY EXTRA – WINTER 2021 consignment – eg an annual consignment 2 imperative for successful organ- businesses to the brink. In addition to employee experience. Technologies that do In Europe, where many countries began Mark Smith, partner of innovation momentum to continue into next year. At the output improves. Those stimulu
software in this sector. While India is
incentives at Ayming UK, says: “The pace
same time, emerging markets should benefit
eventually pressure wages upward, lifting
oxide, oil, paint or other coverings
sectors is a major revenue contributor in the
United States and EMEA.
to qualify, with the finished product classified to 12 months (which can be back dated). sations faced high-profile internal strife labour regulations will undergo a seismic not will find themselves with a short lifespan expected to resume as economies reopen. of economic change is rapid, and low US real interest rates, a weaker dollar, inflation. “These reflationary policies will also Manufacturing: Predictive analytics, in edge analytics for renewable energy impacts investment in autonomous robo
l Simple paining and polishing operations
on the following industry verticals:
witnessing growth in government investment
from widening US current account deficits,

businesses face the absolute certainty that
from a particular supplier. The other is a long-
new infection rates climbed, growth is
under a different 4-digit tariff heading.
Covid-19 has added fuel to the fire. And,
have key implications for global growth, and
term declaration which covers a period of up
macroeconomic
on the factory floor. The use of edge analytics
as cloud-native solutions make it easier than
The economics team forecasts 5% GDP
shift buoyed by a new presidential
between employees and business leaders in
(mainly solar), green buildings are driving
accommodative
especially for emerging markets, because of
consensus estimate. The team’s 2022
materials and goods on the factory floor is
has yet to fully reveal itself, companies
Singapore,
Indonesia,
need should HRMC decide to audit.
mutual respect thrived. In 2021, trust will be
to make needed adjustments to optimise
use case in the manufacturing sector.
make the next leap to help executive
for emerging markets in 2021, led by a
Malaysia.
balance,” Ahya says. The economics team
energy production. The EMEA region is the
expected to grow substantially over the
Thailand,
more broadly viewed as a foundational
negotiations between the UK and European
innovate
6 WINTER 2021 – INDUSTRIAL TECHNOLOGY EXTRA 8 WINTER 2021 – INDUSTRIAL TECHNOLOGY EXTRA This is the back-up information that you will 2020, those with cultures built on trust and administration in the US and Brexit ever to change vendors. Technologies must growth in 2021, which is slightly below the while the impact of the pandemic on R&D market and policies. That adds up to 7.4% GDP growth 28 a shift in the US savings-investment primarily predictive maintenance, is a critical Energy: Edge analytics data ca
through
must
Union. This will create an even more
forecast 9.8% improvement in India.
outlook for the euro zone, however, pegs
forecast period.
WINTER 2021 – INDUSTRIAL TECHNOLOGY EXTRA
leadership, HR, and people managers
enhance their employees’ lives. GDP growth at 3.9%, versus a consensus downturns. Fortunately, this report reveals believes that this change in regime will in turn

are discovering new ways both to fund
impose Covid-19 closures – has quickly
support, the initial rebound should turn into
INDUSTRIAL TECHNOLOGY EXTRA – WINTER 2021 9 estimate of 2.8%. “With ongoing policy that businesses and governments alike Meanwhile, China – which was the first to drive US dollar weakness and ultimately set INDUSTRIAL TECHNOLOGY EXTRA – WINTER 2021 29
the scene for a reflationary impulse for the
rest of the world.
a robust recovery,” says Ahya. One notable productive.” regained ground, as consumption roars 15
their innovation and make it more
exception is the UK, where Brexit could slow
the pace of recovery. INDUSTRIAL TECHNOLOGY EXTRA – WINTER 2021
14 WINTER 2021 – INDUSTRIAL TECHNOLOGY EXTRA