The UK’s Contract Electronics Manufacturing (CEM) market is undergoing significant changes today. Global supply chain issues and changing customer needs are reshaping CEMs’ roles. Reshoring trends and sustainability demands are also factors in this change.
At NOTE UK, we have had a front-row seat to these changes – and often have played a leading role in responding to them.
The Resilience of UK Manufacturing
The UK’s electronics manufacturing sector has shown strong resilience. This is true despite recent challenges like Brexit and the COVID-19 pandemic. There has been a renewed appreciation for the strategic value of local supply chains. Customers want more than competitive prices. They seek reliable partners who offer speed, flexibility, and engineering excellence.
More customers want to reduce reliance on overseas manufacturing. They are reshoring or near-shoring important parts of their production. This is not only about supply chain security – it’s about agility. In fields like medical tech, industrial automation, and defense, responsiveness is just as crucial as cost.
Demand for Value-Added Services
The traditional boundaries of contract manufacturing are blurring. CEMs now need to do more than assembly. They must also act as partners in design and engineering. At NOTE UK, we’ve invested a lot to help our customers throughout the product life cycle. We support quick R&D prototyping, test equipment creation, and design for manufacturing in NPI stages.
The growing complexity of electronic products drives this trend. Customers need partners who know their applications. They should manage multi-tiered BOMs and assist with fast product iteration cycles. It’s not 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 now essential. They help meet the quality and efficiency that modern customers expect. At NOTE UK, we use Industry 4.0 technologies. They improve traceability and cut lead times. This helps us keep quality high, even with more complex products.
But technology is only part of the equation. Our people remain our greatest asset. The skills shortage in electronics engineering and manufacturing is serious. Addressing it is crucial for the UK to stay competitive. We focus on training and partnering with local institutions. This helps us 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 is rising in key areas like renewable energy and transport electrification. ESG goals are driving OEMs and CEMs to adopt sustainable practices. This shift creates new opportunities for innovation and differentiation.
To thrive, CEMs need to stay agile. They should invest in people and technology. Also, building strong, collaborative relationships with customers is key. At NOTE UK, we’re not manufacturing electronics – we’re helping shape the future of the industries we serve.
About the Author: Neil Owen is the Vice President at NOTE UK. NOTE UK is a top provider of Contract Electronics Manufacturing services. They are recognised for quality, flexibility, and excellent customer service across various sectors.