The virus’s impact has been profound both in terms of supply and demand and, although we are starting to see a slow recovery of sorts, it’s fair to say that for many it is far too early to quantify the impact it’s had, and will have, on the electronics industry.
Much has been made of a “return to a new normal,” but at the moment it is almost impossible to know what that will look like in the weeks and months ahead.
But, as with any crisis, there will always be new business opportunities that will arise, especially out of one that has had such a significant impact on how people work, rest and play.
Research conducted by ByteSnap Design in the UK found that many UK electronics companies have a clear strategy for the future, as well as a sound grasp of the effects the virus has had on the electronics industry.
Thirty six per cent said they expected a drop in demand, 18 per cent said they were planning for further supply chain disruption, 13 per cent saw increased opportunities while a further 9 per cent saw a need for more on-shoring.
A majority of those questioned, surprisingly or should that be optimistically, expected the UK to be back to ‘normal’ within the next twelve months. whatever that ‘normal’ is.
While concerns are growing about the virus’s economic impact it’s interesting to note that companies see opportunities arising out of the crisis, especially in terms of medical technology and the IoT, and that those companies that put the effort into continuing to innovate were expected to bounce back more quickly. The report suggests that those companies that don’t keep up with technology will ultimately fail - but there’s nothing new in that!
In fact the top three ways respondents suggested for weathering the pandemic and its aftermath were, after innovating at 30%, being more flexible (29%), followed by the need to be lean and engaging in good financial management.
Concerns with supply chain disruption saw a sizeable number of respondents looking to de-risk their supply chains. Many were concerned about over-extended and fragile supply chains, design and manufacturing security and an over-reliance on imports from China – a finding that was reinforced by the fact that 80% of respondents said that they would be considering more on-shoring.
The electronics industry has experienced many ‘Black Swan’ events in its history, but it is certainly fair to say that Covid-19 is one that has dramatically moved the goalposts for both the private and the public sector.
One benefit that has come out of the crisis, however, is the impact technology has had in helping us to carry on living our lives and that the digital transformation, whether that’s more teleworking or automation, that we have seen in the past few years has now moved front and centre.
