Sector Overview
Electronics is one of the principal branches of electrical
engineering and is in the business of creating, designing,
producing and selling electronic systems, components and
equipment.
The electronics manufacturing sector covers the manufacture of
electronic components including semi-conductors, communications
technology, consumer electronics, computers and other IT
equipment. It also includes the manufacture of electronic
instrumentation and control equipment.
Key facts
- The UK electronics industry is worth approximately £23 billion
a year and is now the fifth largest in the world in terms of
production.
- The UK leads the world production of fibre optic systems and
components.
- The majority of electronics employers are small, with 91% of
all UK sites employing fewer than 50 people.
- Only 2% of all UK electronics sites employ 200 people or
more.
- The UK is a centre for global electronics development companies
with major research and development or manufacturing bases.
- 40% of European semiconductor design revenue comes from the
UK.
- The UK is home to 40% of Europe’s semiconductor design
houses.
Future outlook
The industry is fast moving. It will continue to be highly
competitive, characterised by moves towards high performance and
lean working.
Investment, innovation, supply chain management and lean
manufacturing are key factors that will bring major productivity
gains for the electronics sector.
There will be a greater focus on high
value New Product Design and Introduction (NPDI) activity.
Automotive electronics will be a major growth
leader, as demand for greater comfort, engine efficiency and safety
increases the electronic content of cars.
Consumer electronics can expect a boost.
Here the replacement of cathode ray tube displays by flat screens
will continue. The demand for products such as DVD writers,
set-top boxes, digital TVs, home cinema packages and digital
cameras will drive this sector.
The UK is set to maintain its leadership in 3G
technology with companies locating their R&D facilities in the
UK to capitalise on existing technical knowledge.
People and skills
The skills mix in the electronics workforce is changing.
First-tier companies and original equipment manufacturers (OEMs)
are reducing the proportion of lower-skilled people they employ.
This is happening throughout the supply chain too. The
reasons for this include changes in technology and working
practices.
Instead there is a greater need for professional engineers to
work in design, research and development.
Employers also need more technicians with good technical skills
combined with team leadership and forward-planning skills.
Skills required for the future include entrepreneurial skills,
production planning skills and supply chain management skills.