NEWS & EVENTS
GDPR AND BREXIT
EMS
WHAT DOES THE FUTURE HOLD
FOR MANUFACTURING?
By Jonathan Plummer, General Manager of
Electronic Manufacturing Solutions
GDPR and Brexit both seem to be all anyone
has talked about over the past few years.
Yet no one seems to be any clearer on these
topics.
GDPR (General Data Protection Regulation)
came into force in May 2018. But many
companies (particularly smaller ones without
a specialist, dedicated team handling data)
are still unsure about what exactly this
entails. As for Brexit, no other country has left
the EU before so there really is no yardstick.
And with more scare stories available than
facts, it is very difficult to know what may or
may not happen post 29th March 2019.
So, in light of this – what does the future
hold for the manufacturing industry?
manufacturing industry, GDPR offers a
framework for building trust and being
more transparent. It doesn’t stop companies
working with personal data. It just allows
them to redefine their relationships with
customers, employees and suppliers.
As a result, manufacturers which work to
gain the proper consent and demonstrate
they are using the data properly will be
rewarded with customers that are willing to
consent to their data being used. Enabling
companies to continually improve and
personalise the services they deliver.
HOW DOES EMS FIT IN?
THE GDPR OPPORTUNITY
Although GDPR came into play almost a
year ago, it’s still a hot topic. The regulation
protects the personal data of any EU
resident and applies to any company that
has employees, suppliers or customers
in Europe. Meaning even a US-based
manufacturing company that uses a UK
supplier for component parts will be bound
by the rules of the regulation. And while
there is a lot of uncertainty about Brexit, one
thing is clear: GDPR is here to stay (the UK
government has already said the regulation
will continue no matter what the outcome
is).
As many manufacturing companies move
from mass production to customisation,
GDPR could be seen as a potential threat to
innovation. On the surface, the regulation
appears to restrict a company’s use of
personal data. Making it difficult for
manufacturers to tailor products and services
based on their customers’ behaviours and
preferences.
However, it also presents a significant
opportunity for the future. Within the
156
PECM Issue 38
of Procurement and Supply (CIPS) found
that 32% of UK businesses who used EU
suppliers in 2017 were already looking for
British suppliers. So, what are some of the
benefits of reshoring?
Many people will argue that offshore
manufacturing is cheaper, but this isn’t
always the case when you take the
logistics costs into account. Plus, there
are fewer hoops to jump through if all
parts of the supply chain remain in the
UK. Local manufacturing also offers added
flexibility, improved communications,
enhanced control and visibility, better lead
times and often higher quality end results.
Additionally, reshoring UK manufacturing
presents a great opportunity when it
comes to retraining people and reskilling
them in new techniques.
OVERCOMING BREXIT
UNCERTAINTY
When it comes to Brexit, things are more
uncertain. We don’t yet know what the
final deal will be (or even if there will be a
deal at all). And there are still talks about a
second referendum to potentially ‘cancel
Brexit’ altogether.
In terms of trading, leaving the EU without
a deal would likely result in the most
change and disruption. This scenario could
potentially see supply chains become
more complex and the cost of moving
goods to or from the UK increase – as well
as restrictions on the free movement of
labour.
But rather than being something to be
feared, this could actually present a good
opportunity for manufacturers to move
production back to the UK in the future.
In fact, a survey by the Chartered Institute
Many manufacturers have already
realised the benefits of reshoring, but
the process is far from straightforward.
Cost and profitability are critical to the
success of any reshoring. At EMS, we have
helped several customers reshore their
requirements for electronic manufacturing
services back to the UK from both the Far
East and Europe. Tools such as the Cost-
Differential Frontier (CDF) calculatorcan
also help companies compare the options
of producing locally or offshoring, by
looking at demand variability and putting
a number on the costs.
As a sole UK manufacturer, all our
production is carried out in Newbury,
Berkshire – allowing our customers to
benefit from all the advantages associated
with using a local company. Our specific
New Product Introduction (NPI) teams
are also always on hand to ensure
communication is clear at every stage
of the process and that everything
runs smoothly – while eliminating any
ambiguity regarding data, production and
processes.
www.emsolutions.uk.com/
[email protected]