The idea that UK electronics companies are fighting for higher margins is no longer representing the entire truth (this might still be the case in other areas of UK manufacturing – usually not associated with advanced technology).

Manufacturing of consumer electronics  and mass production in general has moved elsewhere, but industry has adjusted and is adapting to a new world where complex electronics and flexible added-value services have become the norm. With low volumes come high margins if technology and quality of services justify the premium price. It’s no chance that Germany is the world’s second biggest exporter of goods after China. Excellence, complexity, flexibility and creativity make products and processes harder to reverse engineer or copy, hence give early adopters enough room to innovate further through R&D investments and keep ahead of the curve. Germany is known for the quality of its engineering base but the UK is known for its world-class services (second only to the US).

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Technorati Tags: advanced manufacturing, automation, electronics, Mark Prisk MP

It’s never promising to break for Christmas holidays with sad and gloomy news. So, the gist of this blog will be encouraging and forward-looking.

Despite general alarming feelings about the UK and European economies, several measures announced in the chancellor’s recent autumn statement are welcomed such as:

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Technorati Tags: Autumn statement, industrial policy, UK Manufacturing

With Chinese wages rising at about 17% per year and the value of the Yuan continuing to increase, the gap between Western countries and Chinese wages is narrowing rapidly. Some analysts overseas expect net labour costs for manufacturing in China and the US to converge by around 2015. After adjustments are made to account for American workers’ relatively higher productivity, wage rates in Chinese cities such as Shanghai and Tianjin are expected to be about only 30% cheaper than rates in low-cost US states. And since wage rates account for 20-30% of a product’s total cost, manufacturing in China will be only 10-15% cheaper than in the US – even before inventory and shipping costs are considered. After those costs are factored in, the total cost advantage will drop to single digits or be erased entirely. (more…)

Technorati Tags: China, Europe, offshoring, UK Manufacturing

Following Intellect’s successful 4G Mobile Broadband conference, I would like to thank our speakers and panellists for their enlightening and provoking presentations and insights during the panel discussions.

Our day was kicked off by John Higgins who introduced John Woodget of Intel, followed by H Nwana of Ofcom and Frank Mather of the European Commission.

John Woodget spoke about the service provider sector - particularly the need for the industry to regain leadership. Intel believes this can be facilitated by a number of measures including; swift release of spectrum, development of longer term strategies, regaining international influence and the promotion of UK industry. (more…)

Technorati Tags: 4G, Adam Pollard, Analysis Mason, Android, Andy Nuttal, Apple, Blue Nowhere, DCMS, Dr Matt Yardley, Ed Vaizey, EU, European Commission, Everything Everywhere, Google, H Nwana, ICT KTN, Intel, intellect, iPhone, John Woodget, Kip Meek, LTE, mobile broadband, mobile network operators, Ofcom, Peter Curnow-Ford, Philip Hargrave, Skype, Stephen Lerner, Three, Vodafone, Wimax

With one day until Intellect’s 4G Mobile Broadband Conference in London, O2 have begun 4G trials in London.

These trials represent a significant ramping up of 4G development and signify O2′s serious intent to provide the first 4G service in the UK. Trials are usually performed in areas with low populations and medium radio traffic, allowing data to be captured easily without fear of interfernce. Trials within London represent a serious undertaking both technically and financially by O2. Their customers can expect data reception to devices at around 50 MBits per second or less for the duration of the trial – the current average being 1.5 MBits per second. (more…)

Technorati Tags: 2012 Spectrum release, 4G networks, 4G trials, 50 Mbps, commercial 4G services, Everything Everywhere 4G, Germany 4G network, Long term evolution, LTE, mobile broadband, O2 brings superfast 4G to London, Ofcom, research and development, Sweden 4G network, Telefonica O2, Vodafone 4G

This weekend sees the opening of a global gathering of ICT executives, government officials and policy makers, who are meeting to share ideas on how ICT can drive economic growth, create jobs, overcome social exclusion and improve quality of life. (more…)

The main idea relevant to businesses stemming out of last week’s Conservative Party conference in Manchester has been the potential to create a market for SME bonds, following Chancellor of the Exchequer George Osborne’s announcement about ‘credit easing’ to help smaller companies. No one seems to know how this is going to pan out and how easy it’ll be for businesses to apply for funding. Though, it was good to see that all three party conferences have debated how we should rebalance the economy and create the right environment for the resurgence of British manufacturing.  (more…)

Technorati Tags: British manufacturing, Chancellor of the Exchequer George Osborne, Conservative Party, Consumer Electronics, Electronics Manufacturing, Eurozone, Freescale, global electronics industry, HP, NXP, OEMs, Philips

According to recent figures put out by the EEF, the electronics sector has seen weaker orders intake over the past three months, with associated concerns about output expansion for the next three months. Companies are indeed tightening the belt due to growing challenges in the global economic environment (the cost of gold has increased dramatically) and are taking their time to make investment and recruitment decisions. However, whereas big and medium size companies are better placed to offset losses, the case is slightly different for single-sited UK SMEs, where the loss of an important customer could be business-critical. The relatively short-term nature of SMEs’ order books in the electronics sector is certainly eroding confidence for some businesses. The UK government should acknowledge that and support smaller manufacturing companies, and allow them to thrive as in Germany where SMEs have been the catalyst for economic growth.

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Technorati Tags: DSEi, electronics, manufacturing, SMEs

There was, once upon a time, a global trend that caused multinational corporations to move towards locations where the cost of human labour was cheaper… Now this trend may cease and even reverse as industrial automation gets smarter, cheaper and cleaner. Who says that a modern, fully automated factory needs to be placed in the Far East indeed? (more…)

Technorati Tags: automation, backshoring, foxconn, Uk electronics, UK Manufacturing

The recent story of Bombardier losing out on the Thameslink train contract to Siemens has triggered talks over whether the UK should act like other European countries and factor ‘socio-economic’ rationales in public procurement policies, or, obstinately continue to be solely market-led. Awarding public contracts based on domestic industrial objectives in addition to a mere ‘value for money to the tax payer’ principle is not just a continental practice. Other western liberal economies have been pursuing similar exercises for many years. The so-called ‘buy America’ policy and offset agreements (especially in aerospace and defence) are good examples of how Americans are making sure their industrial base remains solid. It’s not just a matter of protectionism vs. liberalism – there are many ways policymakers can tackle the issue. Without going into philosophical debates here, the message is clear: It’s now time for the government to think outside the box. With no immediate prospect of new train orders, train manufacturer Bombardier has begun a 90 day consultation with staff at its Derby plant regarding plans to reduce the 3,000 workforce by over 1,400. How many times have we heard stories like this before? (more…)

Technorati Tags: bombardier, buy britain, Innovation, manufacturing, public procurement, siemens, thameslink