PARTNER FOCUS FEATURE
THE GROWTH OF CONTRACT ELECTRONICS MANUFACTURING To understand where Circuit Solutions fits into the overall market of contract electronics manufacturing, it helps to understand the status of UK manufacturing compared to the largest manufacturer which is China. A report published by Santander and
Make UK in 2018 explains the position of the UK electronics manufacturing sector and highlights that it experienced the fastest growth of any manufacturing sector in 2018. It goes on to say, despite representing less than 5% of total manufacturing output, the UK electronics sector generated £19.4bn in turnover and £8.4bn in Gross Value Added (GVA) in 2017. Following almost 20 years of decline,
the sector has experienced a major rebound in growth in 2017 and 2018: up 4.4% and 12.4% respectively. In what continues to be a competitive
sector, there are key areas which the report identifies as presenting opportunities for continued growth beyond 2018 for UK firms. This includes the ongoing development of Smart Devices, Digital Medicines and the roll out of 5G across the UK, all of these being in the high technology markets.
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COVID-19 AND BREXIT Covid-19 has and is having an effect on electronic manufacturing worldwide, initially slowing down the supplies of components from China, but now beginning to affect the confidence in the market place. There are signs that this is having an effect on slowing investment from companies for their new products. Brexit is another factor that will
They conclude that the UK electronics sector continues to
be well placed in the fast growing technology sector, which is the market where Circuit Solutions fit in and continue to have growth. The country that has had the greatest impact in
electronics manufacturing is China. They are the leading manufacturer of electronic products in the world producing 23% of all the electronic exports in 2017 with an estimated value of £240bn. Generally China is able to manufacture electronic products 10 to 20% cheaper than major EU countries mainly due to lower labour costs. When contracting electronic manufacturing to China, although the manufacturing costs are generally lower, the set-up costs are higher due to the logistics of setting up a production line 6,000 miles away.
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potentially affect all manufacturing. The UK Government is carrying out its pledge to leave the EU with or without an agreement by the end of the year. Either way it will allow the UK Government to forge new trade deals around the world and give opportunities for companies to explore these new markets. If there is no agreement reached, then WTO rules would be applied from 2021 to trade with the EU and import duties and controls would be imposed. Circuit Solutions is well prepared for
this growth, due to their developing knowledge and experience with their high technology customers. The challenges ahead are the Covid-19 pandemic and Brexit, both of which are affecting all manufacturing business in the UK and throughout the world.
www.circuitsolutions.co.uk
/ ELECTRONICS
ELECTRONICS | OCTOBER 2020
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