Manufacturing companies think twice about benefits of offshoring

25 11 2011

One of the most common trends to have emerged within the electronics manufacturing industry over the last decade has been the obsession with offshoring.

Companies were keen to make savings wherever they could and the idea of offshoring several aspects of their work initially seemed to have a multitude of obvious benefits.

However, recent events have given a number of these companies cause to have second thoughts. Phil Inness, Chairman of the Electronic Manufacturing Services Association, has assessed why they may now have cause to regret their actions.

“There has been a mass of migration work offshore in the last ten years,”suggested Inness. “Some of this should have gone overseas without question, while some should not have but did. Companies now realise that offshoring isn’t going to be a fix for all evils and there is much cleverer decision making today.

“The may have realised certain savings, but then ended up with obsolete stock or found the work was wrong and had to be put right, with all the time delays involved.

Now, there’s smarter procurement; if someone wants 73 units, they can order 73 units from aUKcompany and have no wastage. If you go offshore, you may have to order 100 units or more to get the price breaks.”

It appears thatUKcompanies failed to recognise the benefits of keeping the work within these shores, only to learn the lesson down the line in financial terms.

Leading electronics manufacturers

Challenger Components have over 50 years of experience in the electronics manufacturing industry and a variety of additional electrical components. They also work alongside a number of leading brand names within the electronics manufacturing industry such as Amphenol, 3M and ebm-papst.

For full details of all the products available from manufacturers such as those named above, contact www.challengercomponents.com

 

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