Future for PCB manufacturing
25 September 2007
The number of PCB manufacturers has drastically reduced from the hundred or so that were around a decade ago. Lee Lloyd of Spirit Circuits gives an overview of the market, and examines why there still is a future for PCB manufacturing in the UK.
The Printed Circuit Board (PCB) manufacturing industry in the UK has gone through some pretty radical changes in the past decade, with the overall number of manufacturers reducing significantly, and all of the higher volume producers closing down as a result of price pressure from low labour cost competitors.
The changes reflect the electronics industry in general, where the volume players have all but gone, but where Research and Development continues to thrive. The challenge to PCB manufacturers therefore, has been to adjust to a high mix lower volume business model, where customer service is paramount. Never has the old adage “time is money” been more relevant than in today’s electronics market place. Time to market is a critical factor in any new products success and hence there is always pressure on the lead-time for a new PCB design, particularly as it is usually the last item to be released from a Bill of Materials.
It is this demand for speed that actually offers PCB manufacturers in the UK the best chance of survival. The ability to offer a service that our competitors in low cost countries cannot is the key to success, and this invariably means delivering the product in a shorter time frame. It is now very common to find an offer of PCB’s from China delivered within 10 days. The challenge to UK manufacturers therefore is to reliably offer a standard delivery of 7 days, with premium small batch services of 48 and 72 hours. By recognizing this challenge, and by introducing initiatives that can help meet the challenge, such as improving production efficiency, elimination of waste and staff awareness of the importance of delivery dates, UK manufacturers can maintain their own competitive advantage.
The ability to partner with a low cost based manufacturer is also a key to success. Chinese manufacturers in particular now offer lower and lower volume supply in order to break into the UK market, and in order to allow OEM’s to remain competitive, UK PCB manufacturers are offering customers a brokered service from selected partners. When operated well, the end customer can benefit from a service, which includes dealing with technical queries (translation from “Chinglish”), handling logistics and carriage, supporting exchange rate fluctuations and an inspection process in the UK prior to despatch. Of course, there is also a huge benefit in the price for product, which is generally supplied to a good quality standard and within the agreed lead-time.
Whilst the PCB manufacturing industry in the UK is likely to remain difficult, the fact that electronic solutions and devices are playing a greater part in our day to day lives, means that there will be continued demand for PCB’s. Therefore for companies that are willing to listen to what the market place wants, and can offer a highly customer service driven product, there is still a healthy future for the supply of Printed Circuit Boards.
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