As we look to 2024 waning inflation will provide some relief and there is tentative optimism in the market however the squeeze on finances will continue to be a dampener. Here at CDT, we have a cautiously optimistic outlook with a business-as-usual approach, especially as several trends continue to help drive growth in the UK plastic enclosure market in 2024.
Key trends driving the plastic enclosures market:
Production Reshoring
Supply chains are the lifeblood of many businesses, the pandemic, Brexit and other global challenges exposed these systems and highlighted a need to shift to a more agile solution.
Businesses are increasingly reshoring, i.e., bringing production closer to home. Benefits include reduced transportation costs, lower carbon footprint, better quality and increased speed to market. We continue to benefit from this trend as we see growth in the bundled enclosure manufacturing and custom assembly market. Because we work under one roof in the UK, customers enjoy more control over their projects, with fewer delays and only having one Bill of Materials and one point of contact to manage.
Smart Technology
The use of smart technology continues to increase with the adoption of smart wireless devices, sensors and industrial automation across the UK to enhance productivity in homes, hospitals, retail outlets, factories and motorways.
This is driving a corresponding increase in the demand for plastic enclosures to protect these smart devices. In the medical sciences sector, for example, smart technology now monitors, undertakes diagnostics and administers therapeutic procedures; a trend that looks likely to continue.
Shortening Product Life Cycles
As product life cycles continue to shorten and 3D printing develops, customer expectations have also risen, along with an expectation of rapid prototype turnaround times.
The flexibility and scope for changes in the production of machined plastic enclosures compared to metal or injection moulded enclosure alternatives mean that the former can meet designers’ and developers’ higher expectations. They are increasingly selecting custom plastic enclosures over other types because, with machined plastic enclosures, no expensive, obsolete injection mould tools are involved.
Sustainability
Global warming and sustainability continue to be a focus. According to the World Economic Forum, one-fifth of the world’s carbon emissions come from the manufacturing and production sectors and consume 54% of the world’s energy sources.
We recognise this is not sustainable and in November 2022 our parent company, discoverIE, signed up to become a zero emissions business. We have set a science-based target to achieve net zero emissions for Scope 1 and 2 by 2030 and for Scope 3 by 2040. So, watch this space as we embark on this worthwhile journey.
To Conclude
Here at CDT, we are looking forward to 2024 and whatever the market brings we remain focused on meeting our customers’ needs first and foremost. If you would like to discuss any of the points raised in this article, please do get in touch.