G English Electronics’ MD, Dave English, believes companies investing in their infrastructure now will be perfectly positioned to accommodate growth as it returns.
The UK electronics industry continues to experience challenging times across most sectors. There are exceptions but in general there has been a decline from mid-2023 until now. This, of course, follows a period of exceptional growth which led to component shortages and customers double ordering to secure parts. Although a natural correction should be expected there has been a continuing reduction in demand. It is not clear how much of this is due to consumption of existing stocks and how much is a reduction in manufacturing. It is likely the current situation will remain well into 2025.
Looking ahead there is good reason to be optimistic. Beyond the expected return to growth of traditional sectors, new markets will increase component demand, such as renewable energy, automotive and telecommunications. For example, the UK’s commitment to net-zero emissions and expansion of 5G networks will generate demand for battery technology, power electronics and EV infrastructure.
Supply chain issues are much improved so manufacturing companies can support returning growth. Likewise, investment in automation will help UK businesses compete on price in global markets.
In summary, while the UK electronics industry faces challenges, the clouds will pass to reveal sunshine coming from the substantial potential in emerging areas.