AT THIS stage of the year, we can see how predictions made in 2021 have panned out, as well as being able to work out where we think we’ll be by the close of 2022. In terms of the electronics industry in the UK, there was a lot in store at the start of the year.
So, what did we think was coming up for the electronics industry in 2022 and where are we now?
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What did we expect?
At the end of last year, there were some key predictions made about the UK electronics industry. One of the main ones was that, as the rising cost of imports and long supply delays became the norm, we’d see more manufacturers moving operations to the UK to avoid these holdups and charges – and this started to happen towards the middle of the year.
The benefits of moving electronics companies to UK-based locations have become increasingly clear in the last few months, with processes running more smoothly and quickly, plus faster delivery times.
Another major forecast was that electronics firms would embrace market intelligence tools. These tools would be used to keep up to speed with supply chain concerns and focus on online outlets.
By moving online, stock levels and the management of products has become easier and more fluent over the last year. According to a recent report, this move to online retail is a Europe-wide trend, with €113 billion of revenue generated by European online consumer sales.
Additionally, with billionaires heading into space in recent years, exploration beyond the Earth’s atmosphere has been making headlines again. It stands to reason, therefore, that one of the major forecasts was that 2022 would see a focus on electronics from the perspective of IoT.
This predicted space race is likely to influence those who are keen to get into advanced coding or other related tech industries. After all, these small-scale smart projects form the foundations for some of most advanced tech we enjoy today.
The factors that influenced these changes
Some of these predictions have panned out as expected. Some of the key factors that led to these changes taking place include the supply chain issues and changes in how we access products – largely caused by the pandemic and Brexit.
The queues that are typically attributed to Brexit and the wide-ranging impact of the coronavirus pandemic have been things that we’ve come to expect, making it easy to predict changes in the electronics industry. It goes without saying that many industries were negatively impacted by this, especially the automotive industry, which is still being bogged down by delayed semiconductor manufacturing and supply across the world.
However, rising inflation, conflict in Ukraine (followed by sanctions) and the other economic changes we’ve experienced this year were not on the cards late in 2021. As the economic picture changes almost daily, it’s expected that predictions for 2023 will be heavily influenced by what’s taken place so far.
