UK Budget Autumn 2024 and Siemens to buy Altair

𝗔𝘀 𝘁𝗵𝗲 𝘀𝘂𝗻 𝘀𝗲𝘁 𝘆𝗲𝘀𝘁𝗲𝗿𝗱𝗮𝘆, 𝘁𝗵𝗲𝗿𝗲 𝘄𝗮𝘀 𝗮 𝗹𝗼𝘁 𝘁𝗼 𝘁𝗵𝗶𝗻𝗸 𝗮𝗯𝗼𝘂𝘁.  It was a big day in the news yesterday for the engineering and manufacturing world! In one day, UK Budget Autumn 2024 was released and Siemens announced their plan to buy Altair.

With the UK government’s new budget, there’s a lot to unpack.

They’re doubling down on green tech, R&D, and infrastructure, which is critical for our sector. For large businesses, this signals a clear direction: adopt cleaner technologies and up your game in digital and sustainable practices.

But what about small and medium-sized businesses (SMBs)? Often the backbone of our industry, they sometimes feel the most pressure—and the least support—when new regulations and tech mandates roll in.

This time around, the budget includes several initiatives that could make a real difference for SMBs. For instance, the government announced an increase in capital allowances, so SMBs can invest in machinery, digital tools, or infrastructure and receive immediate tax benefits.

The extension of R&D tax credits also opens the door for innovation without overloading the balance sheet—a move that could be pivotal for smaller players looking to stay relevant and keep up with the competition. Plus, the government’s continued push for green investment could make it easier for businesses of all sizes to adopt energy-efficient practices without taking a major financial hit.

But, of course, there’s the “devil in the details.” Can SMBs take full advantage of these changes, or will it still feel out of reach? Incentives are helpful, but they don’t address the complexity and resources required to integrate these changes, especially for businesses with fewer people and tighter budgets.

Then there’s the Siemens-Altair news. Siemens’ acquisition of Altair—one of the leading simulation tech players—signals where things are headed: fully integrated, digital manufacturing solutions that can make processes faster, more flexible, and more efficient. This kind of tech has the potential to level the playing field, but how accessible will it be for SMBs? Simulation and digital twin technology could mean serious savings on time and resources, but adoption costs are a big question mark.

So, what’s the takeaway?

The budget and industry news are clear: the future is digital, green, and fast-moving. For SMBs, this is a moment to assess—are you positioned to take advantage of these incentives and adopt the tech that can propel your business forward? For leaders in all sectors, the question is no longer if but how quickly you can adapt.

What’s your view?

More details for those inclined…

The UK Budget Breakdown

The UK Autumn Budget announced on October 30, 2024, introduced several significant changes for manufacturing, particularly benefiting small and medium-sized enterprises (SMBs) through expanded tax reliefs, increased funding for sustainable practices, and support for digital skill-building. Here’s a breakdown:

1. Full Expensing Made Permanent: Full expensing, which lets companies immediately write off 100% of qualifying capital investments like machinery, IT, and other infrastructure, has been made permanent. This change, which effectively cuts the costs of modernization, is a major benefit for SMBs looking to compete with limited capital. For every £1 spent on qualifying investments, a business can claim back 25p in corporation tax. You can read more about this in Grant Thornton’s review of the Autumn Budget.
2. Enhanced R&D Tax Relief for SMEs: This budget also simplifies R&D tax relief, lowering the tax rate to 19% for loss-making SMEs and combining it with a new rate structure. For smaller companies, this opens the door to more innovation with lower financial strain. As detailed by Make UK, the government’s changes aim to lower entry barriers for companies needing support to pursue R&D.
3. Green Industries Growth Accelerator (GIGA): GIGA’s increased funding (now totaling £1.1 billion) targets low-carbon technologies, like hydrogen production and carbon capture, as well as expanding supply chains for clean energy. This additional support could be instrumental for SMBs in green technology sectors or those adopting sustainable practices to access funding and government resources. GOV.UK’s official budget release details how GIGA aims to support green industries and facilitate UK-based clean energy innovation.
4. Expansion of the Made Smarter Program: Initially a regional pilot, the Made Smarter scheme will roll out across England in 2025, offering SMBs in manufacturing access to digital apprenticeships and advanced technology training. This initiative not only addresses the skills gap but also promotes wider adoption of digital manufacturing tools, crucial for smaller manufacturers looking to keep pace with industry changes. Learn more in Make UK’s Autumn Budget summary.

The UK government’s latest budget moves to fortify the nation’s manufacturing base, with an emphasis on digitalization, sustainability, and R&D support. With more funding and tax incentives in place, the time is ripe for SMBs to consider their readiness to seize these opportunities and adapt to an increasingly green and tech-driven economy.

Siemens Altair Deal Look

The Siemens acquisition of Altair Engineering, valued at approximately $10 billion, is a landmark move that positions Siemens at the cutting edge of industrial software by expanding its capabilities in simulation, AI, and digital twin technology. Through Altair’s strong portfolio, Siemens can offer deeper integration of simulation-driven design across industries, from automotive to aerospace, helping manufacturers optimise processes, reduce costs, and lower environmental impacts. You can read more on the acquisition details in this article by Crain’s Detroit Business and additional insights on the strategy via GuruFocus.

Altair’s software specialises in areas like structural analysis, thermal management, and electromagnetics, as well as data analytics. Recently, Altair acquired Cambridge Semantics, a leader in data fabric technology, adding AI and data analytics to its offerings, which Siemens will leverage to expand its digital solutions for industrial clients. Siemens intends to use this acquisition to enhance the capabilities of its industrial clients, supporting tasks ranging from product design to system-level digital twins. Altair’s existing client base includes major players like Ford and GM, who stand to benefit from Siemens’ extensive resources and infrastructure. For a comprehensive look at Altair’s strategic growth, check out the full background at Markets Insider.

This acquisition aligns with Siemens’ vision to lead digital transformation in manufacturing, allowing Siemens to build a more cohesive, AI-powered, cloud-based toolkit for industries navigating their own shifts toward digital and sustainable practices. The expanded Siemens portfolio will likely become a go-to for companies seeking an integrated approach to efficiency and digital innovation.

Ready to Transform Your Manufacturing Journey? Start with Purpose and Clarity.

As a leader in manufacturing or sustainability, you know the pressure to keep up with the latest buzzwords and technologies. But real transformation isn’t about chasing trends—it’s about aligning your digital initiatives with clear, measurable outcomes that drive value and meet your strategic goals. It’s time to cut through the noise, uncover your unique “why,” and take decisive steps towards a more efficient, sustainable, and resilient future.

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