Product category:
General Subcontracting Services
News Release from: Axiom Manufacturing Services | Subject: Contract electronics
Edited by the Manufacturingtalk Editorial
Team on 27 June 2007
Reborn Welsh contract electronics
manufacturer
Based in Newbridge, Wales, Axiom Manufacturing Services is one of many Welsh companies reinventing itself, in their case into a contract electronics manufacturer.
The recent spate of manufacturing job losses has cast a dark shadow over this once pivotal sector of the Welsh economy However, a number of business owners and industry experts across the country remain more confident than ever about its future and expect the technology and manufacturing industries to continue making a valuable contribution to our communities for many decades to come
This article was originally published on Manufacturingtalk on 30 Aug 2001 at 8.00am (UK)
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One such business owner and long time manufacturing worker is Philip Lawrence from Pencoed.
Having recently purchased automotive firm Floform in Welshpool, Mid Wales from its English owners, Mr Lawrence believes it is all about how you approach it.
He said: "The concept of profit maximisation has led to the decline of manufacturing jobs in Wales and it is the greed of overseas companies, perfectly able to remain profitable while based here that is causing jobs to be lost to lower cost economies across the country.
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"At Floform for example, up to 60 per cent of the cost of components is attributable to the price of raw materials.
As such it is vital for us to continue investing in the right type of equipment and skills of our people to ensure that we not only make cost savings wherever we can, but that we continue to play a positive role as one of Welshpool's largest employers." The Welsh owned firm which employs more than 100 people currently exports around 70 percent of its spark plugs electrodes, diesel injector sleeves and semiconductor mounts to a range of blue chip companies around the world.
These include Volvo, Hyundai, Bosch, IR and Micro-Semi in America.
Mr Lawrence also believes that although the days of high volume manufacturing are coming to and end, manufacturing in Wales can still add value over lower cost locations.
This view is also shared by Dr Chris Young, Chief Executive of the Welsh Electronics Forum and member of the Manufacturing Forum for Wales: "The UK electronics industry is worth GBP23 billion a year and is the fifth largest in the world.
In Wales Manufacturing translates into 20 percent of Gross Value Add and despite recent job losses still account for 179,000 jobs.
"However, like all the most vibrant economies, Wales has a sizeable and globally significant cluster of technology companies and likewise will continue to move away from the domination of mass manufacturing of low-value consumer products associated with the late 1990s and into much higher value niche, business-to-business markets." She also believes that the balance has shifted from a small number of large companies to a much bigger number of small companies.
Issues such as recruitment and raising skill levels to world-class standards in a very fast paced environment are crucial to the survival of Welsh companies and the industry as a whole.
"Like my colleague Harry Tee from the recently established UK Electronics Leadership Council, I believe that Welsh and other UK companies must succeed, not on production costs, but on Intellectual Property.
"The labour market of the future is therefore likely to be very different to that of the past.
As low-value assembly jobs are exported so new, higher-skilled jobs must be created and these jobs will be in the development of new products and technologies and in the management of global supply chains and logistics".
Another company which has had to completely reinvent itself in order to survive is Newbridge-based Axiom Manufacturing Services.
The company which formerly manufactured hi-fi systems for the consumer market transformed itself into one of the top ten UK contract electronics manufacturers, providing components, sub-assemblies and products for use in the medical, industrial, defence and aerospace sectors in the UK after adopting a continuous innovation and quality strategy.
Managing Director, Shaun Ashmead said: "In a highly competitive environment where everyone is looking for an advantage, your investment in your people is what will set you apart from the competition.
"By providing our people with 'business excellence' skills, we have developed a manufacturing service which enables Axiom to react quickly to changing markets and customer needs and we can continue to focus on quality and value-add." This approach has paid off for the company which recently announced a GBP2m a month turnover and received numerous UK accolades for its green approach to the environment and its people practices.
Mr Ashmead added: "I am confident that Axiom will continue to play a major role for further job and wealth creation in Wales, but we need to ensure that we retain the qualities that many of the bigger companies cannot compete with." For Simon Thomas of Newport-based Asset International investing in new technology and the continuous upskilling of staff has moved the business into a whole new realm.
He said: "Despite the escalating cost of raw materials, we have improved our turnover by a record 28 percent on last year.
Much of this is a result of the dedication of our people and investing in the right technology and facilities at the right time." Part of the listed UK infrastructure, building and construction products group, Hill and Smith, Asset provides water management solutions for all the major construction firms and water companies across the UK.
The company, now in its sixth year of trading as a limited company, is also investing GBP1m in a fourth production line.
This will allow the business to double its capacity and manufacture Weholite plastic pipes in diameters up to 3.5m.
Added Mr Thomas: "We've already secured forward orders of around GBP1.5m for use in phase four of the water industry's capital works programme known as AMP4.
"Our success did not happen overnight though and we have had to Work systematically on changing the perceptions of people who have been using the same traditional materials for decades.
We also add value by providing solutions that are durable, cost-effective and above all environmentally friendly." The company now expects to create a number of new jobs over the next few years.
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