UK sub-contractors likely to get more work say Subcon organisers

MANUFACTURERS are set to place more work with UK sub-contractors and have a high degree of confidence in the strength of the economy, according to new research.

The survey, carried out by the Subcon exhibition, showed that 47.3% of visitors to Subcon 2013 show planned to increase the amount of work they placed with UK subcontractors in the next 12 months.

The strong tendency was to place more work with local suppliers. When the question was opened up to cover placing work with all sub-contractors, regardless of location, this figure only increased to 47.8%.

With Subcon 2014 taking place at the NEC, Birmingham, from June 3-5, organisers said the signs were that it is ideally timed to take advantage of this upsurge in business for sub-contractors.

This year’s event is set to be the biggest yet, with more than 300 subcontractors exhibiting, representing every aspect of outsourced manufacturing services, from design and prototyping, machining, moulding, fabrication, composites and electronics assembly to finishing and testing.

Subcon 2014 also sees a stronger than ever participation by UK sub-contractors who are expected to represent some 70% of the total number of exhibitors.

Event organisers said the growing size of the sub-contract sector reflected the advantages that came from using specialist third-party manufacturers to produce products.

Asked why they placed work with sub-contractors rather than doing it in-house, manufacturers cited more flexibility, staying focused on core business, cost, quality and the ability to meet delivery deadlines.

One respondent commented: “We outsource our manufacturing to UK sub-contractors in order to focus on product development and service, while keeping capital costs down.”

Another key reason cited was that companies were simply too busy to carry out the work in-house.

This bears out the other findings of the survey relating to business confidence.
Two-thirds (66%) of respondents thought the UK economy would improve in the next 12 months – up from 24% a year ago. A similar figure, 67%, thought that the UK manufacturing sector would improve in the next 12 months – up from 32% a year ago.
Subcon visitors were most positive about the outlook for their own companies, with 68% expecting business to improve in the next 12 months.

Grant Burgham, Business Development and Portfolio Director at Centaur Exhibitions, the organiser of Subcon 2014, said: “Manufacturers are looking to take advantage of a buoyant economy to grow their businesses. Sub-contractors give them the capacity, flexibility and expertise to help them achieve this.

“Subcon is the UK’s only dedicated showcase for contract and sub-contract manufacturing and I am certain that the timing is right for Subcon 2014 to be the best event yet for our visitors and exhibitors alike.”