The information presented in this section is limited to electronics manufacturing with is part of SEMTA’s remit, including the following Standard Industrial Classification (SIC92) codes:

• 30: Manufacture of office machinery and computers.
• 32: Manufacture of radio, television and communication equipment and apparatus
• 33: Manufacture of medical, precision and optical instruments, watches and clocks

The UK electronics industry is worth approximately £23 billion a year and is now the fifth largest in the world in terms of production. The Department of Trade and Industry (DTI) estimates that, including the supply chain, the industry comprises more than 7,500 companies employing 420,000 people. This sector accounts for 19% of total employment in the engineering industry and 15% of engineering establishments (with 5 or more employees). Employment in electronics was estimated to be around 263,000 people in 2004, but it is expected to fall to 240,000 by 2010.

For information on the demographics of the electronics workforce go to the equal opportunities section.

Electronics growth was 4% in 2003 and is forecast to be over 6% annually until 2007. The UK maintains a leading position in the global marketplace for future technologies due to its high skills base and strengths in research and development. The UK is a centre for global electronics development companies with: major Research and Development or manufacturing bases; major design houses; leading edge development in 3G mobile communications; and the production of fibre optic systems and components.

The occupational distribution of employment in the electronics industry is similar to that of UK engineering. Professional and associate professional (technicians) make up a greater proportion of the electronics workforce than engineering as a whole. Key technical occupations include:

• design engineers
• electronic engineers
• software engineers
• production engineers
• other engineers, including control, application, project and process
• skilled operators
• technicians – equipment, process and product

Geographically, a large proportion of the electronics industry is found in the South East, which has 21% of total electronics employment. The next two areas where electronics employment is high are Scotland (13%) and the East of England (11%). There are concentrations of electronics employment in Hampshire, Essex and in the Lothian region of Scotland. Although Northern Ireland accounts for only 2% of the UK electronics workforce, electronics represents 23% of total engineering employment in Northern Ireland. Electronics accounts for 26% of engineering employment in Wales mainly due to the presence of large electronic employers, such as Sony, Panasonic and LG.

40% of electronics sites have difficulty filling current vacancies and of the main hard-to-fill occupations: 39% were for technicians in electronics; 26% were for operators/assemblers; professional engineers (21%); and crafts-persons (11%). Hard-to-fill vacancies are mainly due to a lack of suitably qualified applicants (including a lack of electrical/electronic and computer/machinery programming skills) and previous job experience.

Skills gaps include:

• key/personal – 5%
• IT/computer – 11%
• management – 9%
• marketing/selling – 1%

Key future skill requirements are: technical skills; personal and generic; plus major cross industry skills needs (for example a combination of general engineering and specific electronics skills).  For management occupations, strategic, leadership, supply chain management, entrepreneurial, production planning and general management skills will be needed in the future.  Professional occupations will require design, electronics, software and production engineers particularly for research and development activities.  At intermediate/technician level good technical skills combined with team leadership and forward planning skills will be needed in the future.

Future trends in this industry are focused on:

• constant innovation as product life cycles and design cycles are becoming shorter
• small supply chains firms meeting quality and skills requirements of larger firms
• increasing productivity by improving position in the supply chain through Research and Development and working in partnership with other small firms on large contracts
• implementing lean manufacturing and increased automation of technology
• investment, innovation, supply change management and lean manufacturing for major productivity gains
• up-skilling, flexibility, agility and adaptability of workforce

Future drivers of change:

• rapid technological change
• pervasive nature of electronics
• cyclical nature of the sector
• globalisation of the supply chain
• intensification of competition

Source: SEMTA 2006 and SEMTA 2003
 
For further information on employment levels and predicted levels in electronics together with occupations distribution in the industry go to: