ACEM points way to a united future
05 December 2007
EM&T’s first guide to the EMS sector was done, a decade and a half ago, in tandem with ACeM – the Association of Contract Electronic Manufacturers. So now we have come full circle as ACeM introduce this issue of Electronics Outsourcing with its outline for the future.
It would certainly be an understatement to say that the contract electronic manufacturing market in the UK has been going through bumpy times. Since the millennium the sector has faced numerous challenges, and has been forced to adapt to new realities. However, recent reports do indicate that the market is settling down and now is a good time to take stock of the sector’s contribution to the economy as a whole, and what should be done to improve it.
The world market for electronics-based equipment is currently growing at eight per cent per annum and exceeds $1,200bn (£580m). Electronics and electronic components form a fundamental part of most modern products.
UK electronics production currently ranks seventh in the world just behind Germany. The sector is supported by a strong academic research capability and supplies market leaders in a wide range of areas, including process control, electronics design, instrumentation and systems integration.
Many of the larger manufacturing facilities have been moved to cheaper locations offshore, but the UK Electronics Sector still employs 400,000 people and operates 7,000 manufacturing sites. Overall market revenue is over £37 billion, with production of in the region of £23.3 billion (UKTI Sector Review). These figures confirm that the sector still has a significant UK presence. It is often said that SMEs are the lifeblood of the UK economy and nowhere is that truer than in this sector.
Electronics has always been one of the foundations of modern society, pervading almost all products and services. However, in the UK, the sector is difficult to define and, as result, suffers from both a lack of visibility and a unified representative voice. The industry has punched below its weight when trying to influence policy. The 2003 Electronics Innovation & Growth Team (EIGT) report made a number of recommendations on these issues.
ACeM hopes to act on these recommendations. It is a collective body of leading manufacturing companies, specialising in the provision of products and services to OEMs and design house entrepreneurs. The group seeks to identify leading edge and technology outsourcing markets within which manufacturing in the UK is sustainable in the medium to long term. It also champions the sector in dialogue between Government and the manufacturing industry. ACeM is part of Intellect, the trade association for the UK technology industry. Representing over 800 companies, it runs 20 electronics groups including ACeM.
With the contract manufacturing sector becoming increasingly buoyant, industry associations like ACeM can play a vital role in shaping and securing the future of the sector. Responding to this challenge, ACeM recently appointed a new chair and is rolling out a new work programme.
Specifically, ACeM aims to:
Help companies maintain a good level of awareness of developments and trends within the contract manufacturing marketplace
Provide a conduit for information exchange between contract manufacturing companies, their potential customers and Government
Ensure these companies have a strong voice with the government on key issues and are well positioned to provide expertise and contract manufacturing experiences to help shape future policy
Encourage networking and collaboration with other sectors within the electronics industry and with other industries like healthcare and defence
Provide accurate information regarding electronic contracting and best practice
In the short-term, ACeM hopes to achieve this by focusing on a few key areas including: a code of practice that will provide a benchmark for customers and the industry against which they can measure performance, work with HM Revenue and Customs to ensure that contract manufacturing companies are able to claim R&D tax credits, as well as exploring opportunities for Government funded training programmes.
As Phil Inness, chair of ACeM explains:“The contract electronic manufacturing sector in the UK is an important one with world-class standards. Intellect’s ACeM group has an important role to play in developing the sector. Over the next couple of years, we plan to run a programme that will provide practical help to manufacturers to improve their businesses and grow the sector in the UK. It is vital that we engage with all UK contract manufacturing companies to maximise the value and impact of our activities.”
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