Despite sustained industry efforts throughout 2012, the goal of accelerating inventory velocity remains elusive for the global outsourced manufacturing business, contributing to the sluggish growth outlook for the first half of 2013. To be sure, the new year has delivered some reasons for optimism, with improvements in select macroeconomic data such as a boost in…
The 2012 growth outlook for the outsourced manufacturing industry has vacillated since the year began. Earlier in the year, business activity was upbeat and companies were generally optimistic about growth prospects for the second half. While IHS Corp. still forecasts the industry will post modest growth by year-end, the outlook for outsourced manufacturers has changed…
What's the winning business proposition in today's outsourced electronics manufacturing business? Surprisingly, the answer is not cost, leverage, or the aggregation of supply and demand, three attributes often cited as principal virtues by outsourced manufacturing firms. Instead, in our view, the key factor for success in the current business environment for outsourced manufacturing is speed…
Despite a stronger-than-expected performance in the first quarter that spurred a mild upgrade in the growth forecast for 2012, the outlook for the electronics manufacturing services (EMS) market this year is somewhat uncertain, with no clear trends defining the industry this year. The global EMS market revenue is set to rise to $217 billion in…
After two decades of concentrating on capacity, the focus of the electronics manufacturing services (EMS) industry now is shifting to capability, with competencies including manufacturing skills and supply chain management gaining in importance, according to IHS iSuppli EMS & ODM Market Research at information and analytics provider IHS Inc. Over the past two decades, the…
It may not be easy to envision amid the current state of economic uncertainty and demand volatility, but the global electronics manufacturing industry could be on the cusp of a massive growth phase, as original equipment manufacturers (OEMs) engage in a new round of outsourcing. This will be one of three major trends reshaping the…
Amid rising economic and market uncertainty, the electronics supply chain is moving in divergent directions when it comes to inventory, with contract manufacturers attempting to attain the leanest possible stockpiles and original equipment manufacturers (OEMs) laboring to ensure they have sufficient supplies on hand to rapidly respond to any rise in demand. The two forces…
Despite rising concerns in the electronics manufacturing services (EMS) business about a possible return to the disastrous market conditions seen in 2008 and 2009, the industry appears to be better prepared for a downturn than it was three years ago, likely mitigating the impact of a potential slump. Just a few months ago, economic headlines…
With the growth of electronics end markets slowing and companies flush with cash, outsourced manufacturing firms are set to accelerate their merger-and-acquisition activity during the next one to three years, according to IHS. Following a relatively quiet period over the past several years, conditions appear to be ripe for industry consolidation in the electronics contract…
Having spent the last decade focusing on reducing cost and increasing efficiency, the global electronics supply chain is entering a new phase where innovation in products and processes will drive industry activity, requiring electronics manufacturing services (EMS) providers to focus their investments on helping customers produce improved products and processes. Jim Brown, president of software…