The UK EMS industry has changed beyond recognition
In the early 1980s, the UK electronics manufacturing landscape looked very different from today. Much of the work was still carried out inside original equipment manufacturers, supported by a relatively small base of subcontract assemblers. “EMS” was not yet a widely used term; the industry was still closer to local subcontract electronics manufacturing.
By 2026, the sector had become a mature, specialist, multi-billion-pound industry serving aerospace and defence, medical, industrial, instrumentation, energy, transport and communications markets. Historic EMS-only data is limited, but the early UK market was likely made up of dozens rather than hundreds of true EMS companies, with value probably measured in the low hundreds of millions of pounds. Today, published estimates point to a UK EMS market worth around £11 billion, or more than £20 billion if broader electronic manufacturing services are included.
China changed the market — but not the whole story
China began taking meaningful electronics manufacturing share during the 1990s, with the biggest acceleration in the late 1990s and early 2000s. Lower labour costs, expanding supplier ecosystems, global trade liberalisation, investment in Chinese manufacturing centres and China’s entry into the World Trade Organization in 2001 all helped shift high-volume production east.
For the UK, the effect was significant but selective. High-volume consumer and computer-related electronics were most exposed. However, the UK retained strength where proximity, engineering collaboration, IP protection, compliance, traceability, security and responsiveness mattered more than the lowest possible unit labour cost.
A smaller volume base, but a stronger specialist role
Depending on definition, the UK now has the low hundreds of dedicated EMS or contract electronics manufacturers. Reed Electronics Research refers to approaching 300 UK EMS manufacturing facilities, while a separate UK contract electronics manufacturing report analyses the largest 196 companies. The wider electronics manufacturing ecosystem is much larger, with thousands of companies across design, integration, manufacturing, microelectronics and associated services.
The result is not a simple story of decline. The UK has fewer large-scale mass-production electronics plants than it once had, but it has developed a stronger position in specialist, regulated and technically demanding markets where high reliability, long product lifecycles and close OEM collaboration are essential.
OSIE UK: local capability connected to a global network
OSIE UK is a good example of the modern UK EMS model. Based in St Neots, Cambridgeshire, it supports customers with PCB assembly, advanced assembly and test, new product introduction, product launch, production migration, order fulfilment and logistics services.
As part of OSI Electronics, it also connects UK customers to global manufacturing services across product development, NPI, mass production, sustaining engineering and lifecycle management. OSI Electronics’ global footprint includes operations in North America, Mexico, the UK, Singapore, Indonesia and Malaysia, with its global headquarters in Hawthorne, California and a regional headquarters in Singapore. That local-to-global structure reflects how many OEMs now think: keep engineering support, responsiveness and complex manufacturing close to the customer, while using international capacity where scale, cost or supply-chain strategy require it.
Technology has redefined EMS
The biggest technology shift was the move from through-hole assembly to surface mount technology. That transition enabled smaller products, higher component density, more automation and better repeatability. Since then, EMS has continued to evolve through fine-pitch assembly, BGA, lead-free soldering, automated optical inspection, X-ray, functional test automation, traceability and advanced production systems.
Today, EMS is no longer just about building boards. Customers expect design-for-manufacture, design-for-test, supply-chain risk management, obsolescence planning, repair, refurbishment, lifecycle support and digital manufacturing capability. OSI Electronics’ global manufacturing services model reflects that shift, combining engineering, NPI, production, fulfilment and sustaining support.
Where the UK EMS industry is heading
The next phase of UK EMS will be shaped by regionalisation, automation, strategic sectors, sustainability and service integration. Customers are increasingly looking beyond headline labour rates and asking where products should be built based on risk, lead time, IP protection, resilience, regulation and total landed cost.
That creates an opportunity for UK EMS companies in mission-critical, regulated and lower-volume products. Aerospace and defence, medical technology, energy systems, transport electrification, industrial automation, security and instrumentation all play to the UK’s strengths.
Automation, AI-assisted inspection, connected test data and smart-factory systems will make local production more competitive. At the same time, sustainability will become a bigger differentiator as customers focus on repairability, circularity, responsible sourcing, lower-carbon supply chains and waste reduction.
Conclusion
The UK EMS industry has come a long way from its early subcontracting roots. China and Asia changed the economics of volume manufacturing, but the UK has adapted around complexity, reliability, engineering collaboration and strategic value. The EMS companies that succeed in the next decade will not simply assemble electronics; they will help customers design, launch, manufacture, sustain and improve products across their full lifecycle.