Changing face for UK electronics
07 April 2006
A number of initiatives are aimed at pulling together the diverse UK electronics industry, to give it more direction and a louder voice. John Higgins, Director General of Intellect, outlines developments
Electronics-based equipment is worth over $1200 bn world-wide and has steadily been growing at 8% annually. Electronics and electronic components are at the centre of most modern day appliances and typically account for 20% of a product and in many cases, much more. The electronics sector is going from strength to strength. It is a significant force and new plans are needed to nurture its growth and acknowledge its impact on a global level.
UK electronics production ranks seventh in the world, just behind Germany, with world-class academic research capability. It is a supplier for company leaders in numerous areas such as process control, electronics design, instrumentation and systems integration.
It is true that many of the larger manufacturing facilities have been moved to distant cheaper locations, but studies show that as a sector, UK electronics still contributes more than 2% of GDP and a large £37bn of revenue (the Electronics Innovation and Growth Team [EIGT] report figure 2003) from about 500,000 employees. 80% of total UK enterprises are SME's, but they only contribute about 10% of total turnover. Initiatives such as the Electronics Knowledge Transfer Network (eKTN) will help unlock the capabilities of the SME's and help them to fully utilise their skills and talents.
Electronics is a foundation of modern society pervading almost all products and services. However, the UK electronics sector is elusive when it comes down to a definition. This is because it is fragmented and lacks obvious visibility. Consequently it has punched below its weight when influencing policy. Plans are in hand to change this as a result of the implementation of many of the recommendations from the EIGT report.
The EIGT report produced key guidelines for a new Strategic Leadership Framework to foster a fresh and fitter industry to compete on a world stage.
With a need for a more joined-up approach, The Electronics Leadership Council, which is industry-led with both government and industry stakeholders has been formed to support the growth in this industry. Work streams have been established for focus on key features such as Technology, Public Procurement, Supply Chain emphasis and Skill Enhancement. More recently, the UK Electronics Alliance (UKEA) has been created to develop and implement mechanisms to shape the electronics industry in 2015, while the newly-created Electronics Regulatory Group (ERG) will increase industry influence on EU regulation.
Together, all this will help strengthen the electronics industry, make it less fragmented and put it back on the map.
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