"Supply Line Importance"
"Supply Line Importance"
Keyword: Intellect manufacturing
Our article in the Volume 29 Number 3 2003 edition explored amongst other things the "Know How Driven Services" route and some reference to the supply chain. Our next one in Volume 29 Number 4 entitled "Defying the Downturn" also was convinced that we have a bright future albeit with a different shape.
At present, there are further redundancies being announced in the press for our industry especially in the contract manufacturing side. Some more fabricators have either disappeared or been absorbed. A fear is that some time soon we might reach a critical stage in the supply chain commitment to the UK industry. We have already seen one key laminator withdrawing its UK manufacturing facility. Our members are having a further tough time if it was not rough enough already. Most of them we have spoken to or visited are holding their own and even some in niche applications are doing well, but all have said life is very demanding to put it mildly. However, they are providing an excellent service with very lean and fit teams of employees. There have been reports in the press of some disillusionment with long supply chains from the Far East and middle Europe. Many have now realised that there must be clear and accurate calculations of the true landed cost models. The realisation that shorter time to market intervals drive supply line management to be based on true partnerships disciplines the supply chain where product build schedules are shared with the supplier; this complicates the relationship and especially where there are language and ethnic differences. Sars has been another factor.
There have been rumblings in the press and industry about the failure of regional grants not delivering sufficient jobs. The FT reported in June that a third of the largest government investment grants of the last decade had been a failure, promising 27,600 jobs, but delivering fewer than 5,000. On the other day FT also reported that the Ombudsman was investigating why ministers apparently overruled civil servants to allow a grant to be awarded to save 850 jobs in South Tyneside. The result of this investigation is unknown at the time of writing this article. The observer on 29th June claimed that an approach was being made to the European Commission by a group of UK Fabricators claiming that the approval of this grant contravened European Law. There are many angles to a situation like this. For example it could be argued that preserving a certain critical mass of manufacturing in the UK has its merits in order to encourage the support of the supply base. Alternatively there is an understandable view that providing substantial grants for more capacity creates an unfair and unlevel playing field and can produce an unreal situation. Always in the background, of course, are the national and regional political factors.
On another topic it was very pleasing to hear the announcement by Patricia Hewitt, Trade and Industry Secretary about the new innovative growth team (IGT)for Intellect's initiative for the UK's electronics industry. A Steering Group is being formed from a list of heavy hitters in the industry. This group will move on rapidly to advise a course of action and focus for the industry in order to optimise the opportunities for the UK Plc.
We had a Senior Executive Forum on 15th April, which was well attended by Fabricators, ACeM and Suppliers; the networking opportunities in these difficult times seems to be the most popular part of these meetings. The ICT continue to have regular quarterly Council Meetings and regular evening seminars, the next ones being in September and November. In the meantime the ICT held their Annual Symposium on 4th June at the Lea Marston Hotel in the Midlands followed by a plant tour of the Invotec Group's Tamworth pcb facility. This event entitled"Navigating the Technology Network" was well supported and included several excellent papers (details on our web-site). Mrs Val Kennedy presented the awards for the winners of this year's Dave Kennedy Awards; the winner was Kate Geraghty of Shipley Europe Ltd and the runner-up was Iain Boath of Invotec Group Ltd. Both had produced some excellent work for the benefit of our industry. Derrick Bumpsteed, Chairman of the Invotec Group welcomed us for the plant tour and gave an excellent overview of the Group. The tour was a fascinating insight into a disciplined plant working on high tech, niche products. Thanks are due to Peter Starkey of Starkey Technical Services who kindly chaired the day in a most competent way, standing in for Chris Wall, General Manager of Electra Polymers Ltd and Chairman of the ICT, who unfortunately was unable to attend due to illness. Peter also prepared the report of the whole event for us in his usual thorough and professional style.
At the time of writing, we are finalising details for the Annual Conference to be held by popular request again in Cheltenham on 15th October. We have a full programme of interesting papers by leading personalities and our normal Gala Dinner. There will be another SEF in September to keep up the networking opportunities. Business and Technology briefings also will be included in the Autumn Programme. Meanwhile consult the Intellect web-site for the wealth of activities open to all the Intellect members; there really is a huge amount going on.
Frank Coultard
