Building a resilient supply chain
The effects of the COVID-19 pandemic have been felt keenly across the global economy. Combining this with large shifts in geopolitical policy, every single industry has been impacted, and has been experiencing delays and problems with their supply chain. The US is entrenching an ever-deepening trade war with China and the UK has decided to leave the European Union. Therefore for many manufacturing companies, building a resilient supply chain will become more critical than ever.
The COVID-19 crisis in itself has changed the view on supply chains the quickest Initially, as the virus broke out in China, this was a large problem for those sourcing from China and Asia in general. As the virus spread, so did issues with the supply chain. Although we are slowly beginning to see a way out, COVID, much as it as many aspects of society and the economy, has changed manufacturing forever.
Now, as we head tentatively into a post-COVID world, many organisations and industries are considering their approach to the supply chain, and how to make it as resilient and sustainable as possible in the face of whatever challenges may come in the future. What is the benefit or cost to local supply when measured against COVID-19, Brexit and the impending US-China trade wars? What will the long-term effects of COVID- 19 look like?
As a manufacturer based in Europe, supplying to – in the majority – European and US-based partners and organisations, we are strong advocates for supporting European and UK manufacturing. Across a number of industries, there are many opportunities to grow the UK and Europe supply chain which are currently being missed or unfulfilled.
Take the automotive industry for example –
In the last two decades or so, many manufacturers have been specialising their factories – dedicating facilities to one product or one component. The remainder got outsourced stretching supply chains across the globe. As we look at redefining supply chains, we are more likely to find generalised facilities which are optimised based on their location, not their capabilities – allowing for more through-put, growth in the local economy, and a more efficient shorter supply chain. Drawing again on the automotive industry, the UK government is asking the industry to put forward proposals for funding for the UK’s first gigafactory – supporting the mass-manufacture of automotive batteries and other strategic technologies for the next generation of electric vehicles.
Focusing on building a resilient supply chain ourselves is not only beneficial to our organisation, who will be able to achieve efficiencies and cost reductions that will help them be more productive and profitable, but also the wider economy of both the UK and Europe. Encouraging sustainable growth in the economy is absolutely vital, particularly post-COVID.
We’re a Europe-based mica insulation manufacturer committed to developing and delivering quality, innovative solutions across a range of industries, including automotive, aerospace, electronics and military. We’ve been manufacturing mica solutions in the UK for over 100 years, and have grown our capabilities to enable us to create highly bespoke solutions unique to our customers’ needs and the requirements of the end-product.
If you’d like to discuss your insulation or supply chain challenge and partnering with Elmelin, get in touch.