Daletech has found a way to keep the wheels of business turning as usual despite the impact of Coronavirus on UK Manufacturers

Daletech has found a way to keep the wheels of business turning as usual despite the impact of Coronavirus on UK Manufacturers

Published Friday 28th February, 2020

Like all PCB manufacturers in the UK, Daletech has felt the squeeze from this predicament, but we’d like to assure you that we’re not going to let it beat us. Instead, we’ve been working tirelessly to find alternative sources for our essential materials, in order to minimise the impact on our customers. 

Why is the coronavirus having such an effect on the UK electronics industry?

In an attempt to limit the spread of this virulent human strain of the coronavirus, China has taken some strong steps. With the international community watching to see how the authorities deal with the problem, the Chinese government has placed all factories in affected areas on complete lockdown. With 95% of our parts being imported from China and the Far East, and many of our PCB components being manufactured in these factories, it’s not great news for us or our clients.

In addition to the lockdown, the government extended the Lunar New Year public holiday from January 30th to February 2nd and actively encouraged citizens to stay at home. 

Whether these measures will work to keep the situation under control is still unclear, but the coronavirus is impacting UK manufacturers as a result. 

Of course, we applaud the Chinese authorities for taking necessary measures to deal with a problem that’s both hugely challenging and life-threatening, but it does mean that supply lines to the global electronics market are largely cut off. 

How Daletech is dealing with the problem

Staying at the forefront of the UK’s electronics manufacturing industry is a challenge that Daletech has never shied away from, and we’re not going to let this disaster turn into a crisis. 

With around 50% of all electronics components being manufactured in China, it’s clearly the market leader, but that’s also down to their ability to quickly produce huge numbers of high-quality materials at competitive prices – exactly what our customers demand. 

Over the years, we’ve built some great relationships with our suppliers in China and the Far East, and we’ve been incredibly happy with the quality and prices of the products we source from them. Unfortunately, those suppliers are in the affected zone – but rather than sit on our hands and hope that supply channels will soon reopen, we’ve been working hard to source alternative components from unaffected areas of China. 

These components are of equal quality to those we have always used, but they do come with a price premium. In the short-term, it’s business as usual as we’re supporting our customers by absorbing those costs – a decision we will continue to honour for as long as we can.

Hopefully the measures put in place by the authorities in the affected regions will quickly bring this situation under control, and we can re-establish our normal trade links.

What this outbreak teaches us is that it’s important for a modern company to be proactive, and even though the coronavirus is impacting UK manufacturers, Daletech has the situation under control.

LMFLMANatWestGoldman Sachs