In recent years, the concept of reshoring or regionalisation has gained momentum due to various recent supply chain risks and challenges, including the impact of Covid-19, supply chain disruptions, geopolitical risks, and increasing costs.
As a leading contract electronic manufacturer, we understand the significance of reshoring and how it can positively impact businesses. By bringing electronics manufacturing back home, companies can reduce their dependence on overseas suppliers and, consequently, the risks associated with global supply chain disruptions. This ensures greater control and resilience over supply chain management.
Improved quality control
Quality control is a crucial element that is often enhanced through reshoring. When manufacturing is outsourced overseas, maintaining the same levels of product quality can be challenging. By reshoring, companies have greater control over the production process, leading to improved quality standards and product consistency. This results in better customer satisfaction and trust in the brand.
Reduced costs and quicker turnaround times
Despite the initial viewpoint of offshoring being more cost-effective, domestic production can offer long-term financial benefits. Hidden costs such as shipping, customs duties, and quality control issues associated with overseas production can add up over time.
Then, there is the “Amazon factor”, which highlights the modern demand for quick product delivery. When products are manufactured on the other side of the world, delays can occur, prompting companies to maintain
With rising labour costs in countries like China and India, reshoring manufacturing operations closer to home can result in reduced transportation costs and quicker turnaround times. Reshoring assures design teams that their boards and electronic components are less likely to get delayed in transit on ferries or planes, reducing the risk of missing production deadlines.
Stronger communication
FaceTime, collaboration platforms, and social media will never replace the special bonds established by meeting with your suppliers face-to-face. Regular communication and adequate information distribution build trust. When manufacturing is outsourced to overseas suppliers, a lack of communication and collaboration can cause manufacturers to have less confidence and trust in their suppliers.
Reshoring closes the gap between time differences and enables electronics manufacturers to build a better bond with suppliers and work more closely and efficiently with them. Well-coordinated teams deliver better results. In times of supply challenges, the advantages of having your production close by outweigh the costs. Being nearby allows for easier communication with local suppliers, effectively enabling collaborative discussions on navigating troublesome periods.
Environmental benefits
Over recent years, there have been concerns about the environmental impact of outsourcing production to overseas production. As products must be shipped long distances to reach their final destination, this can result in high levels of carbon emissions that contribute to climate change.
Manufacturers can significantly minimise their environmental impact by reducing the carbon footprint of long-distance shipping and complex global supply chains. Local production allows for better monitoring and adherence to ethical and environmental regulations.
Strengthened local manufacturing base
Reshoring helps strengthen the domestic manufacturing base. This helps ensure long-term stability for the industry and reduces dependence on foreign suppliers, encouraging greater self-reliance and resilience within the national economy.
Get in touch for UK electronics manufacture
While reshoring is here to stay and offers numerous advantages, it’s important to note that it’s only part of the solution. Even when companies bring electronic manufacturing home, the supply chain for crucial components like PCBs and semiconductors often relies heavily on overseas sources. This means the risks of global supply chain disruptions haven’t entirely disappeared.
Our history as a PCB manufacturer, prior to transitioning to a Contract Electronics Manufacturer (CEM), demonstrates the potential that exists within the UK. Companies like FermionX previously operated successfully in this space, highlighting the achievability of local PCB production. This experience, combined with our extensive knowledge in the field, positions us as a valuable partner in navigating the challenges of reshoring and supply chain management strategies. We can help our customers achieve their goals for greater supply chain resilience, cost savings, and local economic impact.
At FermionX, a UK-based electronic contract manufacturer, we welcome any current and potential customers to visit our advanced production facility at any time and meet the team that manufactures their products.
Get in touch with us today and see the first-hand benefits of working with a UK supplier.
Email: sales@fermionx.com
Phone: 01903 524600
