How A Cornwall EMS Company Scales With Defense And Aerospace Demand, with Jon Hurrell, Sellectronics

The UK is shifting from “can it compete?” to “how fast can it scale?” and the change is showing up in real purchase orders. I sat down with Jon Hurrell, Managing Director at Sellectronics to unpack what’s powering growth in UK electronics manufacturing services, especially the pull from aerospace and rising defense spending across Europe. From a garage origin in Cornwall to running complex SMT assembly at scale, John shares what it takes to grow without breaking quality, delivery, or customer trust. 

We also get specific about electronics supply chain disruption. PCB lead times are stretching, and AI data centers are a major force behind it, pulling laminate, capacity, and priority toward high margin builds. John explains how that pressure can spill into component availability, especially for higher end parts and the neighboring ecosystem around BGAs and FPGAs, and why “there’s never a quiet time” if you’re managing procurement and delivery commitments. 

As the business grows, customer strategy becomes survival. We talk about the reality of breaking into established prime supply chains, why tier one and tier two system builders can be a better fit, and how startups and neo primes, including fast moving defense and drone programs, lean heavily on manufacturing partners to manage supply chain risk and scaling. We close on the skills gap across UK manufacturing, what it means to home grow talent in a region like Cornwall, and why training and retention are now competitive advantages. 

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Transcript

Welcome And UK Manufacturing Moment

Philip Stoten, Journalist, Speaker & Podcaster 0:00

Okay. Hello, I'm Philip Stoughton from My House to Yours. Welcome to EMS at Sea Level. I am joined by John Hurrell from Selectronics. John, thanks so much for talking to me. It feels like the UK is having a bit of a moment. I think that's partly due to a realization that there is an impressive manufacturing base there, but also the uptick that we're seeing in defence spending across Europe and actually across the world.

Selectronics Background And Rapid Growth

Philip Stoten, Journalist, Speaker & Podcaster 0:32

Before we dig into the trends in the UK, give me a quick introduction to your own background and to selectrotics and how the two of you became one.

SpeakerJon Hurrell, Managing Director at Sellectronics 0:42

Yeah, absolutely. So traditionally I'm actually a mechanical engineer. So I studied uh mechanical engineering at university and then did various different roles. I did uh some design roles in the marine industry, uh, some uh production management roles, et cetera, et cetera. Uh, and then I went into the world of consultancy as a junior consultant. Um, I did that four in total, about sort of 10 to 12 years, um, and during that process met the guys at Selectronics um a lot earlier in their journey. Um kept very much in touch with those guys. And uh about three and a half years ago, they approached me to say, you know, what it would be interesting coming on board and helping them run the business. Um the they they'd seen quite an uptick in growth. Uh they were uh very small at that stage, sort of around the sort of one million turnover to sort of two million. Um, and uh, but we're seeing a big increase in order volume um and something that uh they were you know that they were sort of thinking about their futures as well and and how the business was going to continue beyond them. Um so yeah, we sat down and and uh talked about it and uh I joined the business and uh we've been going from strength to strength since then. So we're now up to 52 employees. Uh we're looking at around about a seven million turnover. Um so we're which we're growing quite nicely. Uh taking a second unit on, start a second shift. So there's there's a huge amount of change going on in the business, um, but it is driven very much by that defense spending and also aerospace.

Philip Stoten, Journalist, Speaker & Podcaster 2:07

Yeah, and driven by demand, which is the important thing, you know, you're responding to what customers are asking for. You're in one of the most beautiful parts of the UK, but not perhaps the most accessible part of the UK and not the first place you think of to build an EMS company. Tell me about how that came about. Is it simply that's where the founders are from?

SpeakerJon Hurrell, Managing Director at Sellectronics 2:26

Yeah, absolutely. Yep, yeah. So the the guy who actually started the business um began in his garage, uh making up some small electronic assemblies for one customer. Um, and uh, you know, it just grew from there essentially. The uh uh so that was Dean and then Jason, his his business partner, joined him quite quickly after that. Uh found a very small unit and then have grown since there. Um so it's uh it's one of those sort of garage stories that you wouldn't believe, you know, making electronics in a garage and they to what we are now doing uh highly complex SMT assemblies and and uh you know all the sort of high-end stuff. It's uh very different business.

Philip Stoten, Journalist, Speaker & Podcaster 2:59

Yeah,

UK EMS After Brexit And Covid

Philip Stoten, Journalist, Speaker & Podcaster 3:00

yeah, it's an exciting journey, isn't it? And it feels like we're at a bit of an inflection point in that journey. I think um Brexit had its impact and there was a bit of a lull post-Brexit as as people kind of figured out what that meant. Interestingly, it did drive some acquisition of UK EMS businesses by um European companies, particularly Scandinavian companies for what for whatever reason. What are you seeing now in terms of the manufacturing base in the UK? Do you think it has become more robust even before this um this inflection in defence spending?

SpeakerJon Hurrell, Managing Director at Sellectronics 3:38

Yeah, I think it depends on industry. Uh I think some of the industries are struggling more than others. Um certainly the the higher tech side of things seems to be doing very well uh linked to the aerospace and the defence. Uh, I think you know, we'd have some customers that are more on the industrial side. They seem to be struggling a little bit more uh with sales, um, but certainly strong on the tech side. Um you know the the the market is uh it's it's fluxing, really, isn't it? So we if you go back to a couple of years ago post-COVID, the market was extremely buoyant because everybody was uh concerned about restricted supply and therefore placing huge orders. A lot of people saw the effect of that afterwards, where orders dropped off quite significantly. We certainly saw that. But it pushed us to diversify our customer base. Um so we've now got a much broader range of customers, um, and some of which are doing very, very well indeed, some of which are you know not necessarily struggling, but I haven't seen much growth. Um but you know who knows what's gonna happen shortly. You know, we've we've we're going through the Iran issues at the moment, um seems to be potentially resolving itself, but you know, that is potential problems, and then you've got the rush of data centers which is affecting the uh PCB supply chain. We're certainly seeing long lead times on PCBs now. Um, and uh, you know, that's then pushing back into other industries. So there's never a quiet time for sure.

AI Data Centers Hit The Supply Chain

Philip Stoten, Journalist, Speaker & Podcaster 4:59

No, never a dull moment, that's for sure. And before we go on to those sectors that are growing and how you how you make the most of those opportunities, just touching on those supply chain challenges. We've heard a lot about printed circuit board shortages recently. That seems to go back to perhaps laminar issues, and the um perhaps the reason for that is AI is sucking the oxygen out of the room in terms of all of the bits that it needs to uh uh to manufacture those data centers and being happy to um pay whatever is needed for them. Is that just causing your problems or do you see any uh we it's mainly bareboard and so the issues you've discussed?

SpeakerJon Hurrell, Managing Director at Sellectronics 5:41

We are seeing some component issues as well, particularly with the higher-end components. Um anything that is you know got some form of uh very high-end uh sort of AI components within it, is is almost impossible to get hold of at the moment, but that is knocking on to some of the other high-end BGAs, FPGAs, that sort of thing, because the manufacturing capacity is going into making the high-end stuff. Um, because obviously that's where the money is for those uh uh manufacturers. So we are starting to see some component problems, not a huge amount yet, but it's coming for sure. Yeah.

Philip Stoten, Journalist, Speaker & Podcaster 6:12

Yeah, and it's kind of as you say, it's that trickle-down effect, isn't it? Where they're sucking the uh they they're using the laminate that should be used for maybe uh regular FR4 to make the printed circuit boards you need. They're also using all the memory chips, which are making a greater demand on the OSATS and the foundry businesses, so they're not making perhaps the semiconductors you want. Is there any trickle down in terms of the demand side? Obviously, it's the very large European companies, EMS companies that tend to win the AI business, but does that mean business that they're less interested in is available to you?

SpeakerJon Hurrell, Managing Director at Sellectronics 6:48

Um potentially, we've seen a little bit um head our way from some of the larger Europeans. Um uh I wouldn't like to comment on why that is. Um it may it may be because of the demands that you know they're so busy doing that that stuff that perhaps they haven't got capacity to deal with um that kind of thing. But um, you know, we'll we'll uh we'll obviously uh take the work with no questions asked and uh yeah do our best.

Philip Stoten, Journalist, Speaker & Podcaster 7:12

There's a strong

Choosing Customers And Moving Upmarket

Philip Stoten, Journalist, Speaker & Podcaster 7:13

argument. There's a strong argument there when you when you look at that for right-sizing customer and the in this relationship. And that's that's kind of a sweet spot or a fine line that you have to walk when you're running a business of your scale. Is that something that you've learned to do?

SpeakerJon Hurrell, Managing Director at Sellectronics 7:28

You've learned to reference a customer who's a good fit. Yeah, so we've um I spent a huge amount of time when I first came to the business um trying to push for prime uh supply, um, but didn't take us long to understand that actually that was going to be a very, very long process and unlikely to happen just because they've got naturally got their suppliers they trust at the moment and actually trying to get into that is very difficult to break into. So we've been targeting more the sort of next level down, the the tier one, tier two suppliers, uh OEMs that uh that do systems. We've had quite a lot of luck uh with that on the defense side and also within the aerospace as well. Um, but our average order has increased significantly. So we used to do a lot of uh what we call ourselves low volume high mix, but actually, you know, our volumes are going towards medium now, I would say. Um and you know, a good customer for us might be sort of a million pounds a year, um, whereas before it might have been 300k. Um so we're we're pushing up that level and it does put pressure on the smaller customers because it's always natural for us to you know focus more on the larger ones, but that's what the larger European companies will be doing, they'll be focusing on their much larger customers and trying to work out how they can still satisfy the smaller ones. Um this is a natural business process as you grow, isn't it? To work out what is your target market and try and impact on that.

Philip Stoten, Journalist, Speaker & Podcaster 8:52

Yeah, and create that sweet spot and create that stickiness and relationship with those customers that are gonna

Startups Neo Primes And Drone Demand

Philip Stoten, Journalist, Speaker & Podcaster 8:59

grow with you. The challenge is always recognizing those startups that feel like very small accounts that are gonna come become big partners in the future. Do you find yourself working with startups often?

SpeakerJon Hurrell, Managing Director at Sellectronics 9:09

Yeah, absolutely. So we've we've last year we probably did about three products completely from scratch through to product launch, uh, and they've all done okay so far, but have got you know potential to grow a bit more. Um, we don't actually do any design in-house, but we have partners that work alongside us to design and we prototype and then and then sort of help them with a bit of uh design support for manufacturer to get it to market. Um so we do do some of that. Um it's you know, it's not we don't go looking for it. Um there's quite a quite believe it or not, there's quite a lot of creativity in Cornwall and the Southwest in terms of uh new tech. Um so uh you know there's a lot of London money that's coming down to Cornwall now, um remote working, etc. So you have to find that there is quite a few tech startups that are basing themselves down here. So there is opportunities.

Philip Stoten, Journalist, Speaker & Podcaster 9:59

Yeah, those spin-outs from um Silicon Roundabout, as I think they like to call it around the King's Cross area, is uh uh are starting to build some momentum, aren't they? So I I think I think there is an uh quite a vibrant startup market in the UK now, and there's a probably a better uh picture in terms of uh venture capital available as well, which makes which makes all the difference for those businesses. You know, well-funded startups are good potential customers, uh as well as uh existing ones, particularly in the um defense sector. Normally it's the traditional primes, but because of the way uh war is being waged now, we're seeing more startups, particularly in the drone area. Is that an area that has created some demand for you?

SpeakerJon Hurrell, Managing Director at Sellectronics 10:44

Yeah, absolutely. So you know, I for obvious reasons I can't give too much away. We're working with a uh uh what's called a Neo Prime at the moment to develop a new product. Um the turnarounds on that are very fast and quite you know pressured because got hit certain deadlines. Um so uh yeah, that's it's definitely uh an area where excuse me, an area where we've got some opportunities.

Philip Stoten, Journalist, Speaker & Podcaster 11:08

Um I think what's exciting there, John, is when I look at those startups, and I love the term neo prime, um, when I look at those companies, they really do have to lean on their manufacturing partner to manage the supply chain, manage the scale, which is really challenging for for a startup company. It really gets gives you the opportunity to show your metal and create a really sticky relationship. Is that something that you found with those? If you if you put in the extra effort, there's a there's a demand.

SpeakerJon Hurrell, Managing Director at Sellectronics 11:42

Yeah, absolutely. And you know, it is hard to manage, particularly with uh, you know, quick turnarounds and then the issue we've already talked about about PCB delays and things like that. Um, and you know, also the the the ability within the supply chain to be able to produce certain tech levels uh in terms of PCB, that's been a bit of a struggle as well. Um we've had to be looking uh outside the UK for for support with that. Um and you know it it's it's trying to, as always, manage expectations, but also try and do absolutely your best in order to get something to market um so the customer gets what they need, but also then you know, you try and develop the relationship so you're in the right place to then take on the volume work.

Philip Stoten, Journalist, Speaker & Podcaster 12:23

Yeah. And

Skills Shortages And Training Talent

Philip Stoten, Journalist, Speaker & Podcaster 12:24

John, you were at the Global Electronics Association's UK uh leadership summit a couple of weeks ago in London. I imagine it's valuable for you to spend some time with Piers and talk about the problems that we've talked about on this call and find out if everybody's feeling feeling the same pressure.

SpeakerJon Hurrell, Managing Director at Sellectronics 12:42

Yeah, absolutely.

Philip Stoten, Journalist, Speaker & Podcaster 12:42

What are the what are those events like for you?

SpeakerJon Hurrell, Managing Director at Sellectronics 12:44

Yeah, so the the they're really getting some traction now. So that's my third one that I've been to. Um, and you know, the the amount of people attending is significantly increased now. So there's a real good spread of um representation across the the supply chain. Um and it like I say it's very good to catch up with um some of the other guys that are running these businesses and and hear how things are going for them. You know, it's it's certainly positive at the moment, I would say. You know, this year it sounds like it's gonna be a very good year for everybody, which is good. Um, and you know, also the challenges that we're talking about. It's uh it's good to sort of understand that we're not the only ones in that boat. Um, talk about PCB sorgest components, etc. You know, the skills side of thing is a is a big issue that's talked about a lot, um, and uh how people are trying to fill that gap, um, which is not easy. Um, but also understand the market trends uh and see what's going on outside the UK uh and how that might lead to opportunities for UK companies as well. Is it's always a very useful event.

Philip Stoten, Journalist, Speaker & Podcaster 13:43

Yeah, and do you think those those uh skills issues are a UK-wide problem, or is that more regionalized?

SpeakerJon Hurrell, Managing Director at Sellectronics 13:51

Yeah, I think we're because we're isolated where we are, so you know, there isn't any other electronics, uh really any any other electronics businesses nearby. So we're having to home grow our people and their knowledge, uh which is a challenge, but also it means that they potentially um haven't got any historical. They give you retention. So we can we can train them up the way we want them. We've got internal IPC training, all that sort of stuff. So we're we're quite used to having to deal with that problem. Um it's definitely for us. Um, but I think talking to the other guys, the problem is is relatively wide across the UK. Um electronics is uh it's pushed very hard at the design level. Um, but actually, electronics manufacturing, you know, there isn't as much coverage from a uh a higher education point of view or a you know apprenticeship point of view. Um certainly down here our guys have to do a general manufacturing apprenticeship as opposed to electronics apprenticeship, and then we have to train them to electronics. Um I assume there are apprenticeships in electronics in other parts of the country as well. But certainly the the the trend for a degree in electronics engineering that we, you know, that type of level, the availability is there, but not so much on the um programmer operator engineer style thing.

Philip Stoten, Journalist, Speaker & Podcaster 15:05

Yeah, and no, it's fascinating, isn't it? I got my degree in electronic engineering uh and started my career as a printed circuit board designer. So, you know, straight out of manufacturing and into design and and found my way back into manufacturing, but I think it's it's fascinating. And I think if you are home-growing talent, you've got the ability to retain that talent, particularly if you are isolated. Anyone that lives in Cornwall loves being there, so if you can stay there and create a good career, I think it's um it's it's nice to do.

SpeakerJon Hurrell, Managing Director at Sellectronics 15:35

And it one of the really good things that we've found is we've been uh employing a sort of people in their mid-20s, early 30s, which is almost like the next generation, probably not, you know, we have apprenticeships, but we also employ that. And it's really nice to try and keep those people in Cornwall because historically they would have finished the university and then they would have gone uh away from Cornwall and you lose our talent. So we're trying hard to try and retain that talent, and we seem to be succeeding at the moment, which is great.

Final Thoughts And Sign Off

SpeakerJon Hurrell, Managing Director at Sellectronics 16:03

Yeah.

Philip Stoten, Journalist, Speaker & Podcaster 16:03

Well, keep what you're doing, keep doing what you're doing, John. I think you're doing a splendid job there. It's great to see the business growing. I wish you continued success and look forward to chatting to you again soon. Thanks so much. Thank you very much.