Key Takeaways
- In 2026, manufacturers will focus on total value instead of just labour costs, with right-shoring being a key strategy.
- Sustainability and compliance have become essential criteria for OEMs when selecting EMS partners.
- The sourcing environment has stabilised, yet risks remain, particularly in semiconductors and specialist materials.
- OEMs will expect earlier engagement in product development, data-driven manufacturing, and flexible operations from EMS providers.
- UK EMS sector enters 2026 with improved capabilities, emphasizing the importance of partnerships and transparency.
As we move into 2026, many of the manufacturing trends that shaped 2025 have evolved into firmer strategic expectations. Last year, right‑shoring continued to outperform reshoring, with OEMs basing decisions not on labour cost, but on total value – quality, risk, flexibility, lifecycle support and long‑term resilience. Industry bodies such as Make UK and TechUK continue to emphasise the importance of UK electronics manufacturing for complex, regulated and medium‑volume products. When supported by strong quality systems and established global sourcing networks, UK EMS partners remain a commercially compelling choice. The most successful right‑shoring strategies were those developed collaboratively, with clear evaluation of cost, risk and performance from the outset.
By Neil Owen
Sustainability and Compliance: Now Core Buying Criteria
Throughout 2025, sustainability made the shift from ambition to requirement. OEMs increasingly expect EMS partners to demonstrate measurable progress across ESG performance, compliance transparency and digital traceability. Guidance from TechUK, the OECD and the World Economic Forum continues to link sustainability with supply‑chain resilience, competitiveness and responsible growth. As a result, sustainability can no longer be treated as a parallel workstream – it is now embedded directly into partner selection, governance frameworks and risk management. The strongest momentum has come from EMS providers and OEMs who align objectives, data and accountability early in the relationship.
Sourcing in 2025: More Predictable, Yet Still Exposed
The sourcing environment improved over the past year, driven by stronger planning discipline, better visibility and closer collaboration between OEMs, EMS providers and global suppliers. Lead times stabilised across many component groups, and availability improved compared with the volatility seen in previous years.
However, the risk landscape did not disappear – it simply became more selective. Localised disruptions within specific semiconductor categories highlighted ongoing sensitivity to geopolitical tensions and regional concentration. Demand for memory and advanced semiconductors continued to increase, particularly for storage‑intensive and AI‑driven applications, applying pressure in focused areas of the market.
Specialist PCB materials, particularly high‑performance laminates, also experienced constraints as tariff changes between the United States and China affected cost structures and availability.
As a result, effective sourcing in 2025 was defined not by broad‑based shortages, but by early identification and mitigation of targeted risks. Multi‑tier sourcing, proactive lifecycle management and transparent communication with all stakeholders proved essential in sustaining continuity, compliance and commercial stability.
What OEMs Will Expect from EMS Providers in 2026
Looking ahead, several priorities are becoming baseline expectations:
- Earlier Engagement in Product Development
Design for Manufacturing (DfM), Design for Test (DfT) and Design for Supply Chain embedded from the outset. - Data-Driven Manufacturing
Digital integration, real-time visibility and lifecycle traceability as standard. - Flexible Capacity and Agile Operations
The ability to respond to ongoing forecast volatility without compromising quality or compliance. - A Partnership-Led Commercial Model
Long-term collaboration delivering stronger outcomes than transactional engagement.
The Outlook for 2026
The UK EMS sector enters 2026 with stronger operational discipline, enhanced capability and a more strategic focus on value. Uncertainty remains, but demand for electronics continues to grow across MedTech, industrial technologies, green solutions and connected systems. UK manufacturing will remain essential for complex, regulated and medium‑volume applications where quality, speed, sustainability and partnership matter most.
Ultimately, success in 2026 will be driven by insight, adaptability and integrated partnerships built on transparency, shared objectives and long‑term value.