In an uncertain political and economic world of Brexit, volatile currency exchange, customs duties and protectionism UK manufacturers are now seriously reviewing their manufacturing strategies.
The move to oursource manufacturing to low cost areas of the Far East seen in the 1990’s and Noughties was the right decision for many companies in order to remain competitive.
However, given the current global business climate companies are now taking a new look at the best location for manufacture of their products.
Able Contract Electronics would make the case that for printed circuit board surface mount assemblies the cost of capital equipment is the same whether in UK of Far East, labour and energy costs may be cheaper in the Far East but given taxes, duties and exchange rates there is an argument that, overall the UK can be competitive. This is especially so for Able as, being privately owned and having low overheads Able feels confident that it can challenge Far East cost structures.
Such beliefs led Able into discussions with a manufacturer of single point ventilation fans. The client who used to manufacture in the UK closed down its production facilities and moved assembly to China. Over the years they have seen volatility in exchange rates, price increases and loss of control over their ability to respond quickly to market demands.
Able have worked with the client in the introduction of their new generation of fans in developing the suite of boards that make up the product. The client will then restart UK production by opening a new manufacturing unit for final assembly.
The client is delighted that this can be brought back to the UK successfully and we look forward to a long partnership with our customer and the opportunity to work with other companies re-looking at their manufacturing strategies.