Saturday 11 May 2024The Benefits of Re-shoring Electronic Manufacturing to the UK

In the wake of recent global crises and geopolitical uncertainties, the concepts of reshoring and nearshoring have gained significant traction in the business world. The COVID-19 pandemic, threats to global stability, and concerns over intellectual property theft have prompted businesses to reconsider the advantages of bringing production back to the UK or closer to European markets. This strategic shift not only helps reduce costs but also mitigates risks associated with complex global supply chains, ensuring minimal disruption and delay. Mike Calladine Wavemar Electronics Ltd MD highlights the benefits of reshoring electronic manufacturing to the UK, emphasising the advantages in overcoming unexpected challenges, improving product quality, and fostering local economic growth.

Reshoring provides companies with a direct line of sight to their production processes. This proximity allows for quicker adaptation to unexpected challenges, ensuring a more agile response to disruptions in the supply chain. The ability to address issues promptly helps maintain operational continuity and customer satisfaction.

Reduction in Lead Times and Improved Product Quality: Bringing production closer to the end market reduces lead times, allowing companies to respond more swiftly to changing market demands. Additionally, proximity enhances product quality by facilitating better communication between manufacturers, designers, and researchers. This close collaboration accelerates innovation and product development cycles.

Mitigation of Supply Chain Risks and Trade Wars: Reshoring minimises supply chain risks by shortening the distance between production and consumption. This reduction in complexity makes companies less susceptible to disruptions caused by geopolitical tensions, tariff hikes, or trade wars. A more localised supply chain also ensures greater control and predictability.

Access to UK Specialists for Problematic Production Issues: Keeping manufacturing local provides businesses with access to a pool of skilled specialists who can offer advice and address problematic production issues more effectively. This localised expertise contributes to the overall improvement of product quality and manufacturing efficiency.

Job Creation and Economic Stimulus: Reshoring creates domestic job opportunities, stimulates local economic growth, and contributes to a healthier national economy. By investing in the local workforce, companies play a crucial role in sustaining and enhancing the economic well-being of the community.

Revitalising Domestic Industry and Boosting Innovation: Reshoring and nearshoring contribute to revitalising the domestic electronics manufacturing industry in the UK. The reduction in costs, enhancement of quality, and the boost in innovation position the country as a leader in sustainable and secure electronics manufacturing.

Investment in Future Generations Through Apprentice Training: A strategic shift toward reshoring involves investment in future generations through apprentice training programs. By developing highly skilled employees, businesses contribute to the long-term growth and competitiveness of the UK’s manufacturing sector.

Closer Collaboration for Accelerated Product Development: Bringing production in-country fosters closer collaboration between manufacturers, designers, and researchers. This collaboration accelerates innovation and product development cycles, allowing companies to stay at the forefront of technological advancements.

Specialised Production with Shorter Lead Times: Reshoring enables the production of smaller and more specialised quantities with shorter lead times. This flexibility allows companies to respond quickly to market demands and optimise their production processes based on real-time feedback.

Mike Calladine Wavemar MD explains – Here at Wavemar, reshoring involves essential strategies like production diversification to streamline capabilities and minimise supply chain complications. Additionally, efforts to reduce waste and multi-skill staff contribute to operational efficiency. The practice of maintaining buffer stocks of completed assemblies further insulates against unforeseen disruptions, reinforcing the resilience of the manufacturing process.

The benefits of reshoring electronic manufacturing to the UK extend beyond cost reduction. By enhancing quality, stimulating local growth, and positioning the country as a leader in secure and sustainable manufacturing, this strategic shift holds the potential to reshape the landscape of the UK’s electronics industry. While challenges exist, the overarching advantages make reshoring a worthwhile pursuit for companies looking to secure their supply chains, protect intellectual property, and contribute to the long-term prosperity of the national economy.