Join us as we unravel the story of the electronics industry in 2024, honing in on the critical world of PCB assembly, a cornerstone of modern tech that has been instrumental in driving innovation and adapting to shifting market demands. We’ll delve into this year’s defining trends and examine the key drivers shaping the evolution of the UK’s PCB industry. From market shifts to technological advancements, we’ll explore the forces driving progress and share insights into where this fast-paced sector is heading next.
2024 UK Market Trends
The UK continues to hold a significant role in the global PCB market, particularly in the manufacturing and assembly of high-performance and specialised PCBs. While the UK’s PCB sector is smaller compared to major manufacturing hubs like China and Taiwan, it remains a key player in Europe, especially in industries that demand precision and quality.
In 2024, demand for PCBs has been driven by growth in several critical sectors, including automotive, medical devices and telecommunications. The automotive industry’s push toward electric vehicles (EVs) has significantly boosted the demand for advanced PCBs, especially for battery management systems and electronic control units (ECUs). Similarly, the medical technology sector requires high-quality, biocompatible PCBs for devices such as diagnostic equipment, implants and wearables.
Telecommunications, particularly the rollout of 5G networks, has been another driving force. As demand for faster, more reliable communication infrastructure increases, specialised PCBs used in 5G equipment, antennas and base stations have seen substantial growth.
Challenges Faced
The UK’s PCB assembly sector faced a number of challenges in 2024, particularly in terms of labour shortages and rising production costs. The demand for more advanced and specialised PCBs has surged. However, there has been a noticeable gap in the skilled workforce needed to meet this demand. With a lack of trained technicians and engineers in PCB assembly at large, some manufacturers have struggled to maintain production levels while ensuring quality. Thankfully this has not been the case for MPE Electronics.
Inflation and increasing energy prices have significantly impacted production costs for the UK’s PCB assembly manufacturers, making it more expensive to operate factories and maintain profitability. The cost of raw materials, particularly copper, and other critical components used in PCB manufacturing has also risen. This has led to higher prices for end products, affecting both manufacturers’ margins and the cost competitiveness of UK produced PCBs on the global market. These financial pressures have created a challenging environment for the PCB industry in general as it seeks to remain competitive while managing rising operational costs.
Positive Developments
Technological advancements
In 2024, the UK’s PCB assembly industry has made significant strides with the adoption of cutting-edge technologies to improve efficiency and sustainability. Automation, including surface mount technology and artificial intelligence (AI), has revolutionised assembly lines, enhancing both speed and precision. AI-driven systems now play a crucial role in quality control, allowing for real-time defect detection and predictive maintenance to reduce downtime. By automating repetitive tasks and improving consistency, these technologies have helped PCB assembly experts keep up with rising demand while reducing labour costs.
A move to focus on sustainability
Sustainability has also become a key focus in electronics manufacturing. Eco-friendly materials, such as lead-free solder and recyclable components, are increasingly being used to reduce the environmental impact of production. Green PCB technologies, which focus on reducing the use of toxic chemicals, are becoming more common, aligning with the global push for sustainability. UK manufacturers and assembly experts are adopting practices to minimise electronic waste and enhance energy efficiency, ensuring that their operations align with environmental goals.
Nearshoring
Another emerging trend in the PCB assembly sector is nearshoring or reshoring, which involves relocating PCB manufacturing closer to the end-user markets, including the UK. This strategic shift is primarily being driven by the need to reduce reliance on long and complex global supply chains, which have proven vulnerable in recent years. The disruption caused by the COVID-19 pandemic and ongoing global conflicts have highlighted the risks of overseas manufacturing, where delays, tariffs and component shortages became significant challenges. These disruptions made it increasingly difficult for companies to secure the necessary parts and materials, leading to longer lead times and costs.
With local production, UK based electronics manufacturing services providers not only minimise the risks associated with global supply chain disruptions, but can also respond more quickly to changes in demand, reduce transportation costs and improve their ability to adapt to market needs. This shift not only boosts cost efficiency but also fosters innovation by enabling quicker prototyping and product iterations.
The rise of miniaturisation
The growing trend of miniaturisation in the electronics industry is significantly influencing the PCB assembly sector. As technologies advance, the demand for smaller, more intricate printed circuit boards continues to rise, particularly in fields like 5G, wearable devices and IoT. These applications require highly compact designs with increased functionality, driving the need for advanced materials and manufacturing techniques. High-Density Interconnect (HDI) boards are at the forefront of this trend, offering more complex circuitry in a smaller space, which is essential for powering cutting-edge technologies.
The need for miniaturised PCBs is also fueled by the growing demand for flexible PCBs, which can be bent and shaped to fit in tight spaces or unique form factors. These flexible designs are critical for devices that require compact, high-performance components, such as medical implants, automotive sensors and consumer electronics. HDI boards, combined with advanced manufacturing processes, enable the creation of these intricate, high-performance PCBs while maintaining reliability and durability. As the demand for miniaturisation increases, PCB manufacturers are continuously innovating to meet the needs of industries pushing the boundaries of size, performance and functionality.
How MPE has embraced 2024’s advancements and opportunities
Equipped with our positive outlook and can-do approach, we have embraced the advancements and opportunities that 2024 has presented. This year has been exceptionally upbeat for us, marked by significant achievements and growth.
Here’s a recap of what we’ve accomplished this year:
Investment in automation
A new pick and place machine
The Mycronic MY300DX pick-and-place machine we’ve purchased this year highlights our commitment to innovation in PCB assembly. Installed in February, the machine has enhanced production efficiency, placing up to 40,000 components per hour with high precision. The advanced system offers faster changeovers, increased flexibility and better component handling. This upgrade has improved production quality and reduced costs, ensuring faster lead times and lower risk of defects. Read more here.
Unveiling our depaneling machine
Our investment in the Seetrax CirCut P35 depaneling machine has enabled us to automate the separation of individual circuits from larger panels, significantly reducing production time and eliminating manual cutting. This precision has enhanced our workflow efficiency, lowered costs and minimised manual labour while improving quality and reliability, particularly for critical applications in sectors like medical and aerospace. Find out more here.
New facilities
In August this year, we began a new lease at a 2,064-square-foot facility at Riverside, Bellbrook Business Park in Uckfield, to enhance our operational capacity to meet growing demand. This expansion allowed us to increase our service capabilities, including box building, testing, inspection and assembly, while reducing lead times for our customers. The new unit, located near to our primary location, supports our long-term strategy to handle more custom projects and offer greater flexibility. Read more about this new facility here.
Dedicated production spaces
We successfully transitioned a client’s in-house PCB assembly to our new facility at Riverside, where, through close collaboration, we have established a dedicated production area, tailored processes. This new space allowed us to adapt our facilities, including installing custom shelving and rerouting electrical lines, to meet the client’s unique needs.
Sustainable packaging
Our new Continuous Improvement Team launched an eco-friendly packaging initiative this year to reduce waste and costs while maintaining product quality. By reusing supplier packaging and cutting bubble wrap use, we’ve already achieved a 56% reduction in packaging costs. The project is part of a broader strategy to improve operations and reduce our environmental footprint while ensuring timely delivery and quality for our customers. Discover more about our green packaging initiative here.
Nicola Evans, our Managing Director, has this to say on what 2025 will bring for MPE Electronics: “We are poised for growth and with our new machines and expanded facility, we are fully prepared to welcome new products and customers. Regardless of what 2025 brings, we remain committed to upholding our core values. By staying true to our ethos, to promote and maintain a family atmosphere, we will continue delivering exceptional service and the highest quality products to our customers via our greatest asset – our highly skilled, long serving team.”
2025: What’s Next for PCB Assembly in the UK
Electronic Vehicles
Looking ahead to 2025, the UK’s PCB assembly industry is poised for significant growth, driven by advancements in electric vehicles and 5G technology. As the automotive sector increasingly adopts electric vehicles and autonomous driving systems, the demand for advanced PCBs in these applications will rise. EVs, autonomous vehicles and related technologies require complex, high-performance PCBs to manage power, control systems and connectivity, all of which present exciting opportunities for UK manufacturers.
5G networks
The telecommunications sector’s expansion into 5G infrastructure is expected to further drive demand for specialised PCBs. 5G networks require high-density, high-speed PCBs to handle the increased data transfer and connectivity demands.
At the same time, the PCB assembly sector’s resilience and ability to adapt will be crucial. With ongoing challenges such as labour shortages, rising production costs and potential for global supply chain disruptions, the UK industry looks likely to continue to focus on technology investment and innovation. Automation, AI and sustainable practices will play key roles in overcoming these obstacles, helping the sector maintain its competitive edge in the global market.
Growth and Innovation
2024 has been a year of both opportunities and advancements for the PCB assembly sector. As we reflect on the trends, technological innovations and market shifts that have shaped the industry, it’s clear that the UK remains an important player in global PCB manufacturing, and MPE has successfully embraced these changes to enhance our capabilities, drive efficiency and support sustainable practices. Looking ahead to 2025, we’re excited about the sector’s focus on automation, sustainability and emerging technologies – trends that will continue to open doors for growth and innovation. We are committed to not just adapting to these changes but leading the way in shaping the future of electronics manufacturing.
MPE Electronics is an established and experienced contract electronics manufacturer specialising in PCB assemblies and full box build assembly for a wide range of commercial and industrial businesses.
To find out how MPE Electronics’ PCB manufacturing and assembly services can benefit your business, contact our expert and friendly team on +44 (0)1825 764822 or enquiries@mpe-electronics.co.uk.
