Recently, there’s been a series of articles in the press from UK-based EMS companies suggesting that manufacturing is ‘coming home’. A number of them have stated that they are winning business from people who’ve previously gone offshore. That’s clearly good news for them but we feel that to suggest that offshore isn’t working, is a very sweeping generalisation and is worthy of further analysis. Hence this blog.
It’s perhaps no coincidence that the companies who have made these statements do not have an offshore capability of their own! Of course, offshore is no panacea. But, under the right circumstances, for the right product with the right build volumes, offshore is an entirely appropriate and effective manufacturing strategy.
And how do we know this? Because, within the Paragon Electronics Group, we have plenty of experience in offshore manufacturing. This includes our own facility and our range of accredited manufacturing partners. Firstly, with our own, in-group, contract electronics manufacturing services company, JJS Electronics, we have state-of-the-art manufacturing facilities in both the UK and Czech Republic. We recognised the role of Central and Eastern Europe (CEE) relatively early and JJS Electronics s.r.o. (our wholly owned assembly facility in Chomutov, in the Czech Republic) has been operational for nearly six years now.
We employ over 160 people at our Czech facility and are actively recruiting. Every member of our Czech workforce consistently exhibits an exceptionally strong work ethic and a desire to help us exceed our World Class standards. Quality, processes and procedures are the same across the Paragon Electronics Group and we operate the same QMS, IT and phone systems at all group sites. Indeed, each group company recently achieved AS9100 registration which included our components and supply chain management business – Paragon Electronic Components plc. Furthermore, our Chomutov facility is one of only 26 companies to receive this certification in the Czech Republic. Offshore’s detractors often hold a naïve view of these regions. This view is misplaced; the Czech Republic is an EU country and its workforce is extremely talented. We’re proud to have Chomutov assembly professionals on our team.
Another example of our offshore experience is Paragon’s Electronics Manufacturing Management (EMM) service. This has been provided by Paragon since 1997. Paragon works with a network of contract manufacturers around the world, who we can select based on the specific requirements of a project. When it comes to contract manufacturing, we always say that one size does not fit all, which is why we work with assembly partners in the UK, Europe and the Far East – a time proven approach that continues to work extremely well.
Going back seven or eight years, it seemed like there was a near ‘gold-rush’ to push projects out to China. Without a doubt, some companies outsourced projects that were entirely inappropriate, this was due to a range of factors e.g. complexity, volume and proximity to market to name but three. However, when it comes to the question of UK vs. offshore, it’s totally inappropriate to make glib comparative statements as, in many ways, it’s horses for courses.
We’re a British-based group of companies and we’re extremely proud of the skills, expertise, technology and experience we have here in the UK. But we’re also proud of our Czech workforce with their strong work ethic and technical skills base and our global service partners including those in the Far East. To counter the anti-offshore comments that we’ve seen in the press recently, I’d suggest that OEMs are careful before writing-off an approach that could benefit their customers in a variety of ways. Take each project on its merits, understand all the requirements and identify the ‘best-fit’ manufacturing strategy. It’s the only way to keep everyone happy!
- John Mayes, Group Managing Director
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