Welcome to another post in the series Only Connect. It is
written by Nick
Locke, of Nicab
Ltd, who has over 15 years of experience in the
electronics
manufacturing industry specialising in interconnection cable assembly.
I have recently been engaged in a fascinating discussion in an on-line forum made up of UK Electronics Manufacturing Business Leaders and the discussion was about the UK versus Far-East.
The discussion focused on where the UK stands and how we see the Far-East, moreover how the UK can win and keep business in the UK.
Regarding PCB work, some good points were made on why we CAN compete with the Far East:
I have recently been engaged in a fascinating discussion in an on-line forum made up of UK Electronics Manufacturing Business Leaders and the discussion was about the UK versus Far-East.
The discussion focused on where the UK stands and how we see the Far-East, moreover how the UK can win and keep business in the UK.
Regarding PCB work, some good points were made on why we CAN compete with the Far East:
- Product - If the type of product being manufactured is mostly built by machine; it does not matter where those machines are in the world so long as you control your overheads.
- Overheads - The most expensive part of any business is labour, the management being the most expensive. If the management pays itself on success not high wages and perks then a large % of overhead is taken out of the business.
- True cost of manufacture - Probably the most important, you have to consider all costs of manufacturing offshore i.e. remote management of the supplier, visits to the supplier, freight costs, duty, currency fluctuations, etc
What is really interesting is that almost everyone in the industry wants to keep products in the UK, even those bigger companies who own their own Far-East factories. The overall feeling I get is that it's all about control and fast response.
Things will, and do, change all the time. For example, a component goes obsolete or hard to get. In the UK we can react quickly, source alternatives, test and carry on. The whole process is much longer when you are working between offices half way around the world.
Industry association Intellect have produced a great guide to the true cost of off-shoring and it can be found here: www.intellectuk.org/content/view/6269/84/
This discussion is positive and realistic and I hope that we can continue to keep talking and ultimately promoting UK Electronics Manufacturing, as there are many of us out here passionate about keeping it alive and kicking.
Nick Locke, director at Nicab Ltd, has over 15 years experience in the electronics manufacturing industry specialising in interconnection cable assembly. Driven by a passion for interconnection he spends a great deal of his time searching out the latest technology and innovation in interconnection & manufacturing in general.
Keen to pass on information his aim is to engage the electronics community in the subjects and issues he believes are important. Totally devoted to the promotion of the electronics manufacturing industry he sees the future of electronics manufacturing as vital component in the UK economy.
Previous Only Connect entries:
* Only Connect: On using Ethernet connectors
* Only Connect: High-temp superconductors good news for renewable energy
* Only Connect: A positive mindset for winning government contracts
* Only Connect: A Top Ten of connector manufacturers
* Only Connect: Red toxic sludge points the way (Going Green #3)
* Only Connect: Handy Design Tips #4 - Explosion proof Ethernet
* Only Connect: We're changing the world into a better place, baby!
* Only Connect: Handy Design Tips #3 - The right wrong connector
* Only Connect: Proud of the Made In UK mark
* Only Connect: Handy Design Tips #1 - Colour
* Only Connect: Better promoting the value of UK manufacturing
* Only Connect: Easy ways to go green
* Product packaging (Going Green II)
* Only Connect: The Nicab Top Ten connectors
* Only Connect: Handy Design Tips #2 - Problems & Opportunities
* Only Connect: Kudos for Connector.com
What is really interesting is that almost everyone in the industry wants' to keep products in the UK even those bigger companies who own their own Far-East factories. The overall feeling I get is that it's all about control and fast response.
Things do and will change all the time for example a component goes obsolete or hard to get. In the UK we can react quickly source alternatives test and carry on. the whole process is much longer when you are working between offices half way around the world.
Industry association Intellect have produced a great guild to the true cost of off-shoring and can be found here: http://www.intellectuk.org/content/view/6269/84/
This discussion is positive and realistic and I hope that we can continue to keep talking and ultimate promoting UK Electronics Manufacturing as there are many of us out there passionate about keeping it alive and kicking.
