The Trump administration's position on the free trade agreement (FTA) known as NAFTA is crystal clear: it is considered a "bad deal." What's less clear is how any action taken by the administration will impact cross-boarder commerce.
The Trump administration has said it will renegotiate or pull out of NAFTA to preserve U.S. jobs. Electronics manufacturing services providers are among the businesses taking advantage of the relatively-low costs of production in Mexico. It appears EMS companies are thriving there. Four of the 10 most-impressive EMS operations in the Americas are based in Mexico, according to VentureOutsource.com.
The EMS consultancy asked more than 5,000 electronics manufacturing professionals to rank EMS companies based on performance criteria. Two manufacturers are in the U.S.; two are in Canada; and two are in Brazil.
Free-trade agreements significantly benefit businesses, according to KPMG Thomson Reuters. Although the intent of FTAs is to simplify trade across boarders, the process is nonetheless complex, KPMG experts said. A significant number of businesses don't take advantage of FTAs because of tax issues and paperwork. The challenges that get in the way of full FTA utilization are complex of rules of origin, challenges in gathering required documentation, and a lack of internal expertise, according to the consultancy.
Although Mexico has received most of the recent attention related to NAFTA, renegotiation of the agreement would impact Canada as well.
The VentureOutsource.com Top 10 EMS Providers in the Americas for 2016 (in no particular order are):
Celestica, Toronto, Ontario, Canada Celestica’s Toronto operation hosts a concentration of engineering, commercialization, supply chain, complex system manufacturing and after-market services expertise for customers in the healthcare, smart energy, aerospace and defense and industrial markets. Toronto is also home to Celestica’s headquarters.
Mack Technologies, Juárez, Mexico Mack’s 84,000 square feet Juárez facility is within thirty minutes of the El Paso, Texas International Airport. The facility offers medium to high volume North American manufacturing for circuit board assembly and systems integration. Materials management focuses on local commodity sources to keep costs low. Complete system integration capabilities and a range of fulfillment solutions help make the Juárez facility attractive for a range of outsourcing requirements with labor intensive requirements.
Jabil, Manaus, Brazil Jabil Manaus’ team delivers high-quality products for customers in the set-top box, digital camera, LCD TV and kiosk industries and has been doing so for more than 12 years. The Manaus site is located in the only industrial-free trade zone in Brazil and has a team of employees dedicated to the community and environment. Jabil Manaus’s diverse suite of technological offerings help Jabil customers innovate and bring products to market quickly and reliably.
Foxconn, Sorocaba, Brazil Foxconn’s Sorocaba facility has quality certification for ISO 9001, ISO 14001 and OHSAS 18001. A complement to Sorocaba is its RF equipment and considerable functional test capabilities among other technologies. One noteworthy product Sorocaba produces is the Apple iPad. Sorocaba also produces OEM notebooks and other computing product and has capable new product introduction (NPI) processes and deep field failure analysis capability.
Kimball Electronics, Reynosa, Mexico Kimball Electronics’ Reynosa facility has ISO 9001, ISO/TS 16949, ISO 13485 and ISO 14001 certification. Capabilities Reynosa offers include PCBA manufacturing, subassembly and system build, RoHS compliant manufacturing, In-circuit test and functional testing. Types of product produced at the Reynosa facility include ventilators, sleep apnea devices, variable speed monitor controls, electrical substation equipment, power metering controls and HVAC motor systems and controls, to name a few.
Plexus, Guadalajara, Mexico This Plexus facility is located in Zapopan, a city and municipality located in the Mexican state of Jalisco, part of the Guadalajara Metropolitan Area. Plexus invested roughly $40 million developing its 265,000 square foot Mexico manufacturing plant located in Guadalajara Technology Park. At full capacity the site was designed to employ more than 740 people.
Sanmina, Ottawa, Canada Some of the focus at Sanmina Ottawa is in creating complex optical and RF/microwave products utilizing deep expertise in optical, RF and microelectronics. Some supporting capabilities include product design and development, test and process engineering and new product introductions (NPI) serving medical, industrial, telecommunications and defense and aerospace industries at the component, module and systems levels.
NEOTech, Otay Mesa, Tijuana, Mexico NEOTech’s Tijuana facility offers printed circuit board assembly, box build and systems integration services, medical device manufacturing and new production introduction (NPI) services for customers in the industrial, medical and military/aerospace markets. NEOTech Tijuana recently added new high speed surface mount surface mount technology machines to provide additional capacity for printed circuit cards.
Microboard Processing, Seymour, CT Microboard Processing (MPI) is a woman-owned, privately held, ISO 9001:2008 and ISO 13485 certified and ITAR compliant contract EMS provider serving medical electronics, aerospace, defense, telecom, industrial electronics and commercial markets since 1983. MPI’s staff includes 25+ engineers supporting NPI to full volume production, with design-for-manufacturability and test (including RF) in house.
KeyTronicEMS, Spokane Valley, WA The KeyTronicEMS Spokane Valley is also where the Company headquarters is located. Services offered in Spokane Valley include full product assembly and sub-assembly, printed circuit board assembly, plastics molding, tooling plus depot repair and reverse logistics.
Criteria respondents were asked to consider for determining reputations of top EMS providers in industry for VentureOutsource.com’s ranking includes: depth and scope of management; available technology manufacturing quality and factory cleanliness.