KATEK is leveraging its scale and position as one of the top EMS providers in Europe to support its OEM customers. However, the electronics industry is on a continuing march toward globalization. Thus, KATEK is looking to expand beyond its regional market.
In part four of this five part series, KATEK CEO Rainer Koppitz explain what he believes large OEMs expect from their manufacturing partner:
- Support the full value chain, from design through prototyping and multi-disciplined manufacturing, though end of life
- Follow customers wherever they go, regardless of geography
- Have the same systems and processes everywhere in the world
KATEK has already invested in Malaysia and is planning for additional investment in Asia and the Americas. Koppitz is convinced the electronics manufacturing services provider will need to have a global footprint, global account management and global systems that allow for solid factory-to-factory communication and the ability to move a product seamlessly from one location to another.
The global EMS environment is different than it was only a decade ago. Tariffs and trade wars have tarnished China as a manufacturing mecca, yet it is an active and attractive market. Other regions in Southeast Asia are gearing up to become alternatives to China for low-cost manufacturing.
Manufacturers are also under pressure to manufacture in a region for consumption in that region, a reversal of the dominant offshoring model. While this is good news for EMS in the Americas and Europe, it also underscores the necessity of a global footprint. KATEK’s management is targeting digital transformation as part of its globalization process.
The digital transformation in the manufacturing market was valued at $263.93 billion in 2020 and is expected to reach $767.82 billion by 2026 with a CAGR of 19.48 percent over the forecast period, according to Mordor Intelligence. With the advent of Industry 4.0 in the manufacturing industry, various plants are fostering digital technologies to enhance, automate, and modernize the whole process.
Digital transformation and automation reduce processing costs and enhance cost efficiency in the manufacturing industry. For instance, digital manufacturing can reduce development cycles and ascend the rate of product innovation thus mitigating manufacturing cost.
Digital transformation in manufacturing addresses various global issues within the industry, including manufacturing companies modernizing their supply chains through Big Data and GPS tracking, which not only helps in data-driven planning but also provide a competitive advantage over counterparts and helps companies stay ahead in the market, Mordor reported.