A Blog on Low Cost Manufacturing

This week I was going to write about new technology however, since the Bangladeshi capital Dhaka has seen a tragic loss of life in a textile factory I wanted to take this opportunity to talk about how this is very relevant to our industry and specifically Cable Assembly.

Just like the textile industry, the assembly of cables is still very much a labour-intensive process as there is only so much that automated tools and machines can produce. Due to the amount of labour involved many people choose to use off shore labour, most commonly to the Far-East. This is not the only destination, however, as many eastern-European countries are now being used.

All of the arguments we have heard on the news and discussion programmes on low cost labour run in parallel with our industry.  For example, if you are paying a very low price for an imported product where is the price being squeezed? Is it in the quality of the materials, is it the workforce in the factories being paid low wages?

For balance I have to say that not all offshore factories are bad, some do treat their workers very well.  However, you wont find the products they manufacture in the bargain bucket.

Consumers paying £3.00 for a T-shirt are clearly aware that there has to be something going on.  In the same way, if you are purchasing Cable Assemblies at rock-bottom prices, you will wonder about the consequences.

So let’s say you buy your £3.00 T-Shirt – what is it’s life expectancy? Upon purchasing, in the back of your mind you know it’s not going to be long before it loses it shape and looks old and tattered.   The same applies to cheap Cable Assemblies, you must know NOTHING is too good to be true. At some point they are more likely to fail and, worst case scenario, fail at a dangerous level because electricity is involved.

Here is where the parallel with the T-shirt analogy stops, because there is one crucial difference.  When you buy the £3.00 T-shirt and you are done with it, in the bin it goes;  whereas the Cheap Cables you have are being sold on.  This is where the ethics count most of all.  As your customers do not know the full supply chain do they know they are buying cheap cables or are they being sold as a premium brand?

You see in this industry there is no fair trade or labelling system to say how well the workers are treated in the factories that produce the parts.  In fact a UK Manufacturer can import all the parts and finish the assembly in the UK and claim the ‘Made in the UK’ badge.

Reflection on the Dhaka tragedy shows that perhaps this is a good time to start asking what more we in the UK can do to promote ethical sourcing.  Once again, I am not saying that all offshore manufacturing is bad and in fact there is a place for it.   We just need to understand that there is a massive difference between low cost and rock-bottom cheap products, and we the consumers need to have the wits to understand the difference so that we can make an informed decision when choosing where to purchase from.

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