The worsening of relations between the West and China over Taiwan is a concern for many, not least those whose product requires a semiconductor to make it work. Taiwan dominates the global semiconductor market so, if you need a semiconductor, the chances are it is coming from Taiwan.
The situation highlights why local manufacturing is the way forward. While Taiwan has been able to distinguish itself from its competitors due to its strong capabilities in OEM wafer manufacturing and a complete industry supply chain, the pandemic, along with increased geopolitical tensions, has accelerated worrying trends in manufacturing that were already present. Global supply chains are coming under mounting pressure, prices are rising, and customers are becoming increasingly impatient.
This represents an opportunity for businesses like CB Technology to provide customers with supply chain expertise, value add engineering services, and complete manufacturing capability.
The benefits of local manufacturing include greater supply chain stability, higher quality assurance, less waste, fairer working conditions, and adherence to strict safety standards. In short, local manufacturing partners can be relied upon.
And there are a number of other benefits too: local community employment, a closer relationship between designer and manufacturer, and the maintenance and development of skills, to name just a few.
There are several exciting sectors in Scotland that could take advantage of local manufacturing services for mutual benefit. For example, if we look at the space industry, there are 80 companies in Scotland operating in this sector. The value of this industry is expected to rocket to more than £4 billion by 2030, growing faster than anywhere else in the UK.
Other sectors, such as life sciences and robotics, are also thriving, and both are areas in which we have expertise to share. We are keen to form close relationships with ambitious companies and offer them the opportunity to work with a top quality manufacturer on their doorstep.
There’s another major benefit to local manufacturing - the battle against global warming and climate change. Keeping manufacturing local reduces the CO2 emissions produced by transporting products from A to B. Railway transportation, for example, becomes easier, which is a good option for the environment.
CB Technology understands the challenges posed by global instability coupled with domestic pressures such as inflation and the difficult labour market. While this is a tough time for Scotland’s business community, it is leading companies to rethink their sourcing strategy and their manufacturing supply chain. And it is becoming clear that partnering with a well-invested, well-run local manufacturing solutions provider makes good business sense for many companies.
