Act now

The new European directives on lead-free electronic components might be a challenge for small companies to put into practice but the sooner they get to grips with the new rules, the better, writes Alpha Micro Components managing director Christos Papakyriacou.

The looming deadline of 2006 for EU members electronics companies to produce and offer lead-free components is something that smaller manufacturers and distributors hope will pass them by.

Many SME electronics companies have been carrying on with ‘business as usual as if the new European directives – Waste Electronic and Electrical Equipment (WEEE) and Restriction of Hazardous Substances (ROHS) – will never happen. This is understandable.

Stopping work in order to devise new lead-free products or scrapping a whole franchised range because it contains lead are simply not options for many companies.

In an ideal world everyone would love to see the transition to lead-free and elimination of hazardous material go smoothly, but this is one of the biggest changes the electronics industry has ever made, and it is not going to take place without side-effects.

When new legislation comes in, with it comes a lot of red tape and bureaucracy, which can be very time-consuming. There are forms to complete, checks to carry out and new designs to develop. This is not a problem for large manufacturers who have in-house quality assurance teams and a large number of engineers, whose sole purpose is to respond to new initiatives and brief other employees.

Electronics giants Panasonic and Sony are already offering green alternatives, demonstrating that the global, multi-million-euro companies can achieve what is being asked of them. But is it fair to enforce the same legislation on a SME of 20 employees or less?

Blanket legislation does not appear to be an effective approach. In my experience, it is the case that everybody in smaller companies has to pull together, which takes up valuable time that should be spent on developing products and relationships with customers. Small engineering teams cannot cope under the strain of doing their daily workload as well as trying to develop new designs, in this case lead-free products. The worst-case scenario is that smaller companies will lose money and sales opportunities while trying to implement new strategies.

Although there has been a lot of advanced warning, there does not seem to have been very much support and advice from governments as how electronic companies should comply with the new legislation, or at least it is not very easy to get hold of.

In the case of distributors, developing new lead-free components is not a problem, but the question of what they are going to do with all the lead-containing stock they currently hold has not been addressed.

Again for an SME to just get rid of whole lines, due to the fact that they contain lead, could be extremely detrimental to its business. Moreover, some manufacturers that are already offering lead-free alternatives have not been receiving any major demand for these products yet. It seems that a substantial part of the electronics industry, whether it is distribution, manufacturing or design, is just carrying on as usual, or perhaps it is just the calm before the storm!

There has been much discussion over the issue that China, the largest electronics and component producer in the world, does not have to comply with any EU legislation. So in terms of lead and other toxic materials, they can still produce equipment in the same way with the same materials for the foreseeable future.

This will have a great impact on the UK and European market, as it will be difficult or in some cases impossible for OEMs and ODMs to buy lead-free products from Asia, which in turn will mean there will be a smaller resource of components and prices may increase. The lead-free legislation might, despite its admirable aims, make Europes electronics sector less competitive in the global market.

Thats not to say it is all doom and gloom. After all the intense hype, worry and panic, the new WEEE directives and ROHS may actually be implemented with success across Europe. Instead of causing the European electronics industry to crash, it could actually encourage Europe to buy from within instead of seeking out cheaper Asian alternatives, increasing business within the EU.

It is an important step that Europe is making and it demonstrates the importance and value the electronics industry gives the environment. My advice to the electronics industry as a whole is start doing some research and get prepared. The information is out there, but it is not going to be handed to you in nice bite size chunks. Changes are definitely on the way, and SMEs are the most vulnerable, so it is better to act now while there is still time rather than leave it to the last minute.