According to a new manufacturing index, the value of contract and subcontract manufacturing in the UK engineering sector was 18 percent higher over the course of 2015 than it was in 2014. In the last quarter the value of the UK contract and subcontract sector was 15 percent higher than in the previous quarter and 32 percent higher than in the corresponding period in 2014.
The Qimtek Contract Manufacturing Index showing movements in demand for machining, fabrication and other outsourced manufacturing services in 2015. 100 = the average monthly figure for 2014
The Contract Manufacturing Index (CMI) has been developed by sourcing specialist Qimtek to reflect the total purchasing budget for outsourced manufacturing of companies looking to place business in any given month. This reflects a sample of over 4,000 companies who could be placing business that together have a purchasing budget of more than £3 bn and a supplier base sample of over 7,000 companies with a verified turnover of in excess of £25 bn.
The index takes as its datum a figure of 100 for the average value of active sourcing budgets on a monthly basis throughout 2014. On this basis, the overall index value for 2015 was 118 and the average index value for the final quarter was 144.
On a process by process basis, machining orders increased by 12 percent in 2015 compared to 2014 and dropped by 1.4 percent in Q4 2015 compared to Q3 2015. Machining orders in Q4 2015 were 32 percent higher than in Q4 2014.
Fabrication orders increased by 32 percent in 2015 compared to 2014 and rose by 32 percent from Q3 2015 to Q4 2015. Fabrication orders in Q4 2015 were 53 percent higher than in Q4 2014.
Overall machining accounted for 54 percent of the business covered by the survey, with fabrication accounting for 41 percent and the remainder including plastics moulding and electronics.
Looking by sector, the majority of the sourcing budget fell into fairly wide classifications including ‘industrial machinery’ and ‘other’. Where a specific end market sector was quoted, the most important were, in decreasing order, construction, electronics, oil/chemical/energy, medical/scientific and automotive.
Commenting on the launch of the Contract Manufacturing Index, Qimtek owner Karl Wigart says: “It has always been difficult, if not impossible, to put an accurate figure on the volume of contract and subcontract manufacturing in the UK. There are no agreed definitions as to what the terms cover and no way of separating them out in UK or EU manufacturing output statistics. With the introduction of the Qimtek Contract Manufacturing Index, we finally have a way of understanding how the market is moving, even if we can only guess at absolute values.”
Qimtek is the leading independent network for the UK engineering and manufacturing industry that connects active buyers and suppliers so both can grow their business.
Since its foundation in 1992 Qimtek has built an unrivalled reputation as the UK’s leading destination for manufacturers looking to source high quality UK-based engineering services.
Qimtek’s network provides manufacturers with access to engineering resource, enabling high quality components or end products to be sourced quickly and effectively. Qimtek also provides the opportunity for UK engineering to showcase its skills to manufacturers, quickly quoting for work that can drive profitable mutual relationships.
Updates on the Qimtek Contract Manufacturing Index will be issued on a quarterly basis.
For more information or comment on the Qimtek Contract Manufacturing Index or the contract and subcontract manufacturing sector, contact:
Qimtek Ltd
Tel: 01256 394500
Email: karl.wigart@qimtek.co.uk
www.qimtek.co.uk