ELECTRONICS
HOW INDUSTRIAL EQUIPMENT AND CONSUMER ELECTRONICS COMPANIES CAN GAIN A
COMPETITIVE EDGE
To remain competitive in an environment shaped by rapid change and increasing complexity, companies in the consumer and industrial sectors face intense pressure to innovate, scale, and respond to shifting supply chain dynamics. Managing manufacturing in-house continues to be a critical decision for Original Equipment Manufacturers (OEMs). Organisations are turning to outsourced manufacturing not just as a cost-saving measure, but to move faster, operate smarter, and grow more sustainably.
Dennis Kirkpatrick, president of Lifestyle, Consumer Devices, and Core Industrial at Flex, explores why it is a critical strategic lever in today’s market, and what companies should consider before making the shift.
H 12
istorically, outsourcing was focused on labour arbitrage and improved capital utilisation. Companies, especially in telecom and consumer electronics, looked to contract manufacturers to
avoid major capital investments in equipment and facilities and to relocate to countries that provide lower labour costs. In the beginning, these were transactional relationships, centred around basic assembly and fulfilment.
Over time, that model evolved. Today, businesses can outsource not just production, but also complex assembly, testing, packaging, logistics, and even supply chain management. The focus has shifted from isolated tasks to end-to-end efficiencies that span design, production, and delivery - creating value through operational agility and access to advanced capabilities.
Interestingly, different industries have adopted outsourcing at different speeds. In
the consumer space, roughly 60 per cent of production is outsourced, compared to just 20 per cent in more regulated fields like healthcare. The key takeaway is this: while the benefits of outsourcing are universal, how and when you pursue an outsourcing strategy should align with your business priorities.
SEVEN KEY BENEFITS OF OUTSOURCING ON AN INCREASINGLY COMPLEX GLOBAL STAGE
Global markets today are volatile and complex. Companies must navigate shifting customer expectations, economic headwinds, geopolitics, regulatory changes, supply chain disruptions, and persistent labour shortages. Managing R&D and product innovation provides OEMs with true differentiation.
By outsourcing manufacturing, they can focus where it matters most while leveraging expert partners that bring scale, speed, and operational excellence.
Winter 2025/2026 UKManufacturing
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48
