In today’s fast-evolving landscape, the UK’s Contract Electronics Manufacturing (CEM) market is undergoing a period of profound transformation. Global supply chain disruptions, evolving customer expectations, reshoring trends, and sustainability pressures are all converging to reshape the role of CEMs across the country.
At NOTE UK, we’ve had a front-row seat to these changes – and in many cases, have played a leading role in responding to them.
The Resilience of UK Manufacturing
Despite the challenges of recent years, including the aftermath of Brexit and the COVID-19 pandemic, the UK’s electronics manufacturing sector has proven remarkably resilient. There has been a renewed appreciation for the strategic value of local supply chains. Customers are looking not just for price competitiveness, but for reliable partners who can deliver speed, flexibility, and engineering excellence.
We’ve seen a significant uptake in customers seeking to reduce dependency on overseas manufacturing by reshoring or near-shoring key parts of their production. This is not only about supply chain security – it’s about agility. In sectors like medical technology, industrial automation, and defence, responsiveness can be just as critical as cost.
Demand for Value-Added Services
The traditional boundaries of contract manufacturing are blurring. CEMs are increasingly expected to offer more than just assembly – they must become integrated design and engineering partners. At NOTE UK, we’ve made significant investments in our capabilities to support customers through the entire product lifecycle, including supporting customers with rapid R&D prototyping, test equipment development and design for manufacturer during NPI stages.
This trend is driven by the growing complexity of electronic products. Customers need partners who understand their applications, can manage multi-tiered BOMs, and help them navigate rapid product iteration cycles. It’s not just about making the product – it’s about enabling innovation.
Technology and Talent
Digitalisation continues to be a defining force in the industry. Smart factories, automation, and real-time data analytics are no longer “nice to haves” – they’re fundamental to delivering the quality and efficiency modern customers demand. At NOTE UK, we’ve embraced Industry 4.0 technologies that enhance traceability, reduce lead times, and ensure consistent quality, even as product complexity increases.
But technology is only part of the equation. Our people remain our greatest asset. The skills shortage in electronics engineering and manufacturing is real and addressing it will be critical for the UK to maintain its competitive edge. That’s why we continue to focus on training and partnerships with local institutions to build the next generation of electronics talent.
A Sector Poised for Growth
Looking ahead, I remain optimistic about the UK CEM sector’s prospects. Demand in key verticals – from renewable energy to transport electrification – is growing. Environmental, Social, and Governance (ESG) goals are pushing both OEMs and CEMs toward more sustainable practices, opening new opportunities for innovation and differentiation.
To thrive, CEMs must remain agile, invest in both people and technology, and continue to build deep, collaborative relationships with customers. At NOTE UK, we’re not just manufacturing electronics – we’re helping shape the future of the industries we serve.
About the Author:
Neil Owen is the Group Managing Director at NOTE UK, a leading provider of Contract Electronics Manufacturing services with a strong reputation for quality, flexibility, and customer service across multiple sectors.