If you utilise an offshore manufacturing company, now is the time to bring your production lines back to the United Kingdom.
Over the past six months, the value of the British Pound, compared to the US Dollar and the Euro, has depreciated significantly. Despite some recent gains, the markets remain volatile – especially with the surprise result of the United States’ Presidential Election – and many financial experts believe that the British Pound will not rally, or trend upwards, in the foreseeable future.
Offshore production is now prohibitively expensive
In short, this means that the cost of getting your assembled PCBs from the Far East and other offshore locations has increased significantly in the past few months.
At the time of writing, the value of the Pound compared to the US Dollar is at a near thirty-year low of £1.24.
Given that the Dollar is a universal currency and is used by companies based in the Far East, such as China, the cost of labour and manufacturing from these countries have effectively risen by over 20%.
It is a similar story for the Euro. Despite a recent rally that has seen the value rise from £1.11 to £1.16 in the past month, it is still trading well below its twelve-month high of £1.42.
Obviously, that means that the cost of dealing with manufacturing facilities inside the Eurozone has also gone up.
Another consequence of the Pound’s depreciation is that component prices have increased by a similar percentage.
To counter this, some distributors have increased their minimum spend values whilst others have had to raise their prices across the board. Obviously, this impacts on the overall cost of your PCB and is another expenditure that you will have to contend with.
DJ Assembly, UK-based electronic manufacturing
With import costs increasing, now is the perfect time to choose a UK-based contract electronic manufacturing partner that can safeguard your production lines against currency fluctuations.
That partner is DJ Assembly.
Thanks to our links with Cyclops Electronics, DJ Assembly has access to 177,232 stocked line items. By already having ownership of a large volume of electronic components, we can help keep component procurement costs to a minimum. And if we don’t have the right part in stock, we can call upon Cyclops’ global network to find the part you need at the best possible price.
At DJ Assembly, we are committed to providing a truly ‘Best of British’ base for manufacturing. Not only have we been long-standing champions of the UK’s electronics sector, but by offering a substantial range of electronic manufacturing services we have been helping our innovative and industry-leading OEMs achieve their potential.
Our flexible approach to PCB assembly and EMS ensures that each project we work on is tailored to best suit your business model. Our flexible approach to manufacturing runs across our production process, from our design services to our demand delivery system, right through to our stockholding and scheduling services.
So, there you have it. If you are getting stung by offshore firms thanks to the higher costs of importing, reach out to DJ Assembly.
For free advice on your existing production plans and to get a competitive quotation over the phone, call our team on 01904 436456.
Alternatively, you can use our online quotation form, which can be accessed here.
original photo: estudiante (used under CC)