Steve Gaston, business development director of the Midlands Assembly Network (MAN), said we were beginning to see a growing number of companies choosing to outsource some of their manufacturing capabilities in a bid to reduce costs, improve efficiencies and open up capacity.
He added: “The ‘puzzle’ is probably the industry topic of the year and a lot has already been written about how to solve it… investment in automation, investment in skills, investment in systems,” explained Steve, who has been involved in manufacturing for nearly 35 years.
“These are all very valid. However, there has been little discussion about outsourcing, where you source a supplier to deliver your non-core manufacturing operations.”
He continued: “As long as the right strategic partner is chosen, this offers numerous benefits… less unnecessary stock and reduction in work in progress, better cash flow and significantly reduced lead times. It also gives you greater flexibility for volatile volume requirements.”
The Midlands Assembly Network is a collective of eight sub-contract manufacturers and a specialist design consultancy who work together to win work at home and overseas.
The group, which features Advanced Chemical Etching, Alucast, Barkley Plastics, Brandauer, Grove Design, Mec Com, Muller Holdings, PP Electrical Systems and SMT Developments, employs 700 people over 12 factories and this year will smash the £70m combined turnover barrier.
It offers every mechanical, electrical and electronic engineering process, including automation, castings, control systems, etching, fabrication, injection moulding, PCB development and precision pressings.
