Texcel Technology Plc: Trusted Contract Electronics Manufacturer (CEM)

Texcel Technology Plc is a well-established Contract Electronics Manufacturer (CEM) with over 49 years of expertise in the design and manufacture of electronic assemblies. Throughout its long-standing history, the company has built a strong reputation for delivering high-quality solutions to a broad range of industrial sectors. From intricate PCB assemblies to full box builds, Texcel’s comprehensive capabilities enable it to meet the diverse needs of its clients, ensuring that each project is completed to the highest standards. By continuously investing in its resources and staying at the forefront of technological advancements, Texcel remains a trusted partner in the electronics manufacturing industry. 

Key Customer Requirements from a CEM

At Texcel Technology, customer satisfaction begins with the basics—delivering high-quality products at a fair price. These two elements are the foundation of any successful partnership in the electronics manufacturing industry. However, Texcel understands that today's customers expect more from a Contract Electronics Manufacturer (CEM). Beyond quality and price, clients look for a supplier that is adaptable, resourceful, and proactive in solving challenges.

"Can Do" Approach

One of the key factors that sets Texcel apart is its "Can Do" approach. In the fast-paced world of electronics manufacturing, simply informing a customer that a critical component is obsolete or unavailable is not enough. What customers need is a proactive partner who can offer viable alternatives and help them keep their projects on track. Texcel’s team excels in providing timely solutions, often presenting a range of substitute components that meet both technical requirements and availability constraints. This hands-on approach allows clients to move forward without unnecessary delays, maintaining momentum in their production timelines.

Quick Quoting & Decision-Making Support

Time is always of the essence in electronics manufacturing, and Texcel recognises the importance of offering fast, accurate quotes. With its streamlined processes, Texcel can quickly provide customers with all the information they need to make informed decisions. Whether it’s about component selection or production timelines, Texcel ensures that its customers are equipped with actionable insights that help guide them through the manufacturing process. This ability to offer comprehensive support allows customers to evaluate their options confidently and continue their projects with minimal disruption.

Financial Stability and Flexible Supply Options

In an industry where supply chain disruptions are becoming increasingly common, financial stability plays a critical role in ensuring that Texcel can offer flexible supply solutions. Customers need to know that their CEM is reliable and able to weather market fluctuations. Texcel’s solid financial foundation enables it to provide customised supply arrangements that meet the specific needs of each project, whether through strategic stockholding or tailored delivery schedules. This flexibility gives customers peace of mind, knowing that their manufacturing partner can adapt to their unique requirements without compromising on quality or delivery times.

Engineering Support: Solving Customer Challenges

In today’s competitive market, many customers face limitations in their in-house engineering resources. As a result, they rely heavily on their CEM partner to provide not only manufacturing services but also technical expertise to overcome complex challenges. Texcel Technology understands this need and goes beyond the typical scope of manufacturing by offering comprehensive engineering support to ensure the success of each project.

Collaborative Problem Solving

At Texcel, collaboration is key. The engineering team works closely with customers at every stage of the process, providing valuable insights and problem-solving expertise. Whether it’s during the design phase or in the middle of production, Texcel’s engineers are always on hand to assist in overcoming technical obstacles. This close working relationship enables customers to resolve critical issues quickly, often saving valuable time and resources. By taking a proactive approach to problem-solving, Texcel ensures that delays are minimised and projects stay on track, which is crucial in fast-moving industries.

Assistance in Testing and Test Jig Design

Another area where Texcel’s engineering team adds significant value is in testing. For customers with limited internal resources, designing and building test jigs can be a challenging task. Texcel steps in to offer its expertise, helping customers develop customised test solutions that meet the specific needs of their products. This not only ensures that the final product meets all required specifications but also streamlines the overall production process. By offering this additional layer of support, Texcel enables its customers to maintain the highest quality standards while minimising the time and effort spent on in-house testing.

Adaptation to Supply Chain Shocks

In recent years, global changes and unexpected supply chain disruptions have become the norm, creating new challenges for businesses across all industries. For electronics manufacturing, these disruptions can lead to delays, increased costs, and uncertainties. To navigate these turbulent times, customers need a CEM that not only understands these challenges but also has the ability to adapt quickly and minimise risks.

Minimising Customer Risks

Supply chain shocks—whether caused by global events, material shortages, or transportation disruptions—can have a significant impact on manufacturing timelines and costs. Texcel Technology recognises this reality and is committed to helping customers mitigate these risks. By leveraging its extensive network of suppliers and its ability to source components from a wide range of sources, Texcel works tirelessly to keep projects moving forward, even in the face of unexpected disruptions. This proactive approach helps minimise delays and ensures that customers are not left without options when the supply chain is under strain.

UK-Based, Owner-Managed Structure

One of Texcel’s greatest strengths lies in its UK-based, owner-managed structure. Unlike larger, multinational CEMs, Texcel remains nimble and customer-focused, allowing it to make decisions quickly and act in the best interest of its clients. This level of responsiveness is particularly valuable during times of uncertainty, when swift action and clear communication can make all the difference. Texcel’s local presence and hands-on management approach ensure that customers receive the personalised attention they need to navigate supply chain challenges effectively.

The Importance of a Reliable CEM Partner

It’s during challenging times that the true value of a dependable CEM partner comes into focus. When global disruptions occur, having a reliable and flexible partner like Texcel can be the key to maintaining production schedules and meeting customer demands. Texcel’s commitment to its clients goes beyond providing manufacturing services—it’s about building long-term partnerships that can withstand market fluctuations and supply chain uncertainties. By offering flexible solutions and maintaining open lines of communication, Texcel ensures that its customers are supported, even when the unexpected happens.

Building Strong Customer-CEM Relationships

In the highly competitive field of electronics manufacturing, success is not solely determined by technical capabilities or pricing. The strength of the relationship between a CEM and its customers plays a crucial role in ensuring long-term success and project satisfaction. Texcel Technology understands that building and maintaining strong relationships with its clients is key to delivering consistent results and fostering loyalty.

Transparency and Honesty in Collaboration

At the heart of Texcel’s approach to customer relationships is transparency. From the initial stages of a project through to delivery, Texcel prioritises clear and honest communication with its clients. By ensuring that both parties are aligned on expectations, timelines, and potential challenges, Texcel fosters an environment of trust. Customers are kept informed at every step, which allows for timely decision-making and the ability to address any issues that may arise proactively.

Mutual Understanding and Support

Texcel’s emphasis on collaboration goes beyond simply fulfilling orders. The company strives to understand the unique needs and challenges of each customer, tailoring its approach to ensure that these needs are met. This level of mutual understanding ensures that both parties are working toward a common goal—successful project outcomes. Texcel is committed to supporting its customers, whether that means offering technical advice, providing updates on production, or resolving any supply chain issues.

Building Trust Through Open Communication

Strong relationships are built on trust, and trust is built through consistent, open communication. Texcel places a high value on maintaining open lines of communication with its clients, ensuring that they always have a clear understanding of where their project stands. This open dialogue not only helps to avoid misunderstandings but also strengthens the overall working relationship, ensuring that clients feel supported and confident in their partnership with Texcel. By fostering trust through transparency and active collaboration, Texcel continues to build long-lasting relationships that go beyond individual projects.

The State of the UK CEM Market

The UK Contract Electronics Manufacturing (CEM) market is a vital sector within the broader electronics industry, playing a key role in supplying electronic assemblies and solutions across multiple industries. Over the past few years, the market has shown steady growth, but it faces challenges, particularly for smaller companies that struggle with limited resources and increased competition.

UK CEM Industry Overview

The UK CEM market is valued at approximately £1.6 billion and has seen solid growth, with an average sales increase of around 11% in the past year. This growth highlights the ongoing demand for electronics manufacturing services, driven by innovation and expanding industries such as telecommunications, medical devices, and industrial automation. The market is divided into three primary categories: Tier 1 suppliers, which include the largest and most established companies; Tier 2 suppliers, which are medium-sized firms with strong capabilities; and a range of smaller, often niche-focused CEMs.

Profit Margins and Market Dynamics

While the overall market is growing, profitability varies widely across the sector. The average net margin for UK CEMs hovers around 5%, but there are significant differences between companies. Some CEMs, especially those focused on niche markets, see much higher margins, while others, particularly smaller firms, may face financial difficulties. One of the primary challenges for smaller CEMs is the need for capital investment in new technologies and manufacturing capabilities. Without sufficient financial resources, these companies can find it difficult to compete with larger firms that are able to invest in automation, supply chain management, and other efficiencies.

Acquisitions and UK-Owned CEMs

The UK CEM market has also seen a trend of acquisitions by overseas companies, as foreign businesses seek to expand their presence in the UK market. This has made it increasingly difficult to find UK-owned CEMs, as many have been absorbed into larger, multinational organisations. For companies looking to work with a UK-owned, locally managed CEM, the options are becoming more limited.

Despite these challenges, the outlook for the UK CEM market remains positive. It is expected to continue growing in the coming years, driven by the increasing demand for advanced electronic solutions. However, as competition intensifies and more companies are consolidated, the number of CEMs in the market is likely to decrease, making it all the more important for businesses to carefully select the right partner to meet their manufacturing needs.

Conclusion

Texcel Technology remains committed to delivering the highest levels of customer satisfaction through its adaptability, technical expertise, and reliable service. With over 49 years of experience in the industry, Texcel has consistently demonstrated its ability to meet the ever-evolving needs of its customers, providing tailored solutions that address both current demands and future challenges. By maintaining a focus on quality, efficiency, and a proactive approach to problem-solving, Texcel ensures that its customers can rely on them, even in uncertain times.

As the CEM market continues to change, with increasing competition and ongoing supply chain disruptions, Texcel’s role as a trusted partner becomes more important than ever. The company’s ability to help customers navigate these challenges—whether through offering flexible supply options, providing engineering support, or adapting to market shifts—solidifies its position as a valuable resource for businesses looking to succeed in a fast-paced environment.

Ultimately, the strength of the relationships Texcel builds with its customers is a key factor in its success. In a competitive and challenging industry, maintaining strong, honest, and transparent partnerships is crucial. Texcel’s dedication to open communication and mutual understanding ensures that both parties are working together towards shared goals, creating lasting relationships that benefit both the customer and the CEM.

For more information get in touch with Texcel:

General: +44 (0) 1322 621700  
Sales: +44 (0) 1322 621710

Email sales.office@texceltechnology.com 

Address
Texcel Technology PLC, Parkside Works, Thames Road, Crayford, Kent, DA1 4SB