Contract Manufacturing
Why contract manufacturing is the future for the power electronics industry
Paul Bentley, managing director of GD Rectifiers, discusses the long-term benefits of contract manufacturing A
s the global demand for efficient, compact and high- performance power electronics continues to surge, industry leaders are turning to contract
manufacturing as a strategic solution to meet rapid innovation cycles, reduce costs and accelerate time-to-market.
From electric vehicles and renewable energy systems to consumer electronics and industrial automation, the power electronics sector is undergoing a profound transformation and contract manufacturing is emerging at the heart of it.
Contract manufacturing, once primarily viewed as a cost-cutting exercise, has evolved into a sophisticated, value-driven model that provides OEMs with enhanced flexibility, access to advanced capabilities, supply chain resilience and engineering innovation. According to recent market analysis, the global power electronics contract manufacturing market is projected to grow at a CAGR of 8.6 per cent through to 2030, reaching over $150 billion in value, £45 billion in the UK alone by 2030.
Why contract manufacturing is the future for the power electronics industry
Addressing industry complexity with specialised expertise
The power electronics industry is inherently complex, involving high-voltage design, thermal management, electromagnetic interference mitigation and stringent reliability requirements. Manufacturing these systems demands not only precision but also deep domain knowledge in materials science, embedded software and compliance with global standards such as IEC and UL and ISO certifications. Contract manufacturers are no longer just assemblers; they’re strategic partners that offer extensive engineering expertise. Providing critical know-how in areas like power module design for high-current applications and automated test systems that are essential for quality and scalability. OEMs gain access to world-class engineering resources without the overhead of maintaining large internal teams. This allows companies
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manufacturers will become more integral, with companies embracing this model to benefit from enhancing agility, reduced capital investment, global scalability and access to cutting-edge expertise.
to focus on innovation, product development and customer engagement while leveraging external manufacturing partners.
Faster time-to-market in a competitive marketplace
In a fast-paced innovation-led space, such as the EV and renewable energy markets, contract manufacturing enables fast delivery on next-gen power solutions. In addition to agility, contract manufacturers offer Design For Manufacturability (DFM) insights early in the product development cycle, minimising costly redesigns and improving yield rates. Their ability to scale production rapidly, from low volume pilots to full-scale manufacturing – supports OEMs across all stages of growth.
Supply chain resilience and risk mitigation
Geopolitical uncertainty, trade disruptions and raw material shortages have exposed vulnerabilities in global supply chains. For the power electronics sector that is heavily reliant on components like silicon carbide (SiC) and gallium nitride (GaN) semiconductors, supply chain resilience is more critical than ever. Contract manufacturers (CMs) offer the added benefit of a diversified supplier network, offering alternative sourcing strategies, and providing inventory management services. Many CMs have long-term relationships with component suppliers, enabling them to secure critical parts that OEMs might struggle to obtain. The main advantage of using contract manufacturer partners is their ability to navigate global supply chains even in the face of significant global disruption.
Cost efficiency without compromising quality
While cost reduction is no longer the sole driver of outsourcing, it remains a powerful advantage. Contract manufacturers operate with economies of scale that most OEMs cannot match. Outsourcing to a contract manufacturer provides a leaner operation with better cost predictability, with companies able to reinvest savings into R&D and customer acquisition.
Sustainability and regulatory compliance Contract manufacturers are increasingly offering green manufacturing practices, including RoHS-compliant assembly, waste reduction programmes and renewable energy sourcing at production sites. In addition to sustainability being key, a robust understanding of international regulatory requirements is critical for companies shopping globally. From UL and CE certifications to ITAR compliance for defence- related applications, experienced contract manufacturers ensure that products meet all necessary legal and safety standards.
Building strategic partnerships The future of contract manufacturing in the power electronics industry lies not just in outsourcing, but in strategic collaboration. Forward-looking OEMs are forging long- term partnerships with CMs that include joint development agreements and co- innovation initiatives.
As the power electronics landscape becomes increasingly dynamic and competitive, the role of contract
manufacturer partner UK-based manufacturing: all contract manufacturing is performed at GD Rectifiers’ ISO 9001:2015 certified facility in West Sussex, offering local, reliable production capacity with global reach. Flexible, scalable capabilities: providing low to medium and volume production, ideal for prototyping, niche markets, or fast-moving industries like renewables, aerospace and automotive. Custom engineering support: working closely with customers to develop tailored power semiconductor assemblies, heatsinks, rectifiers, filters and voltage controllers, offering both off-the-shelf and custom builds. Global component sourcing: as an authorised distributor for over 30 of the world’s leading power electronic component brands – including IXYS, Semikron, Bussmann, Enerdoor and Mersen, GD Rectifiers ensures stable and cost-effective component procurement. Obsolescence management: GD Rectifiers can support legacy systems, offering component sourcing, re-engineering and reverse engineering for products affected by obsolescence. Fast lead times and prototyping: with in-house design, prototyping and production teams, GD Rectifiers can turn around custom assemblies typically within 4-6 weeks. As demand grows for custom, reliable and efficient power solutions, the value of partnering with a long-standing British manufacturer like GD Rectifiers becomes clear. Offering world-class expertise, flexible production and end-to-end support, GD Rectifiers enables OEMs to stay agile – without the overhead of in-house investment.
www.gdrectifiers.co.uk Components in Electronics October 2025 51
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