In 2019, the worldwide contract manufacturing (CM) services market increased nominally — by 2.5 percent in total revenue — resulting in combined EMS and ODM revenue of over $555 billion, an expansion of $13 billion from the previous year, according to New Venture Research. The Worldwide Electronics Manufacturing Services Market – 2020 Edition reports revenue…
A supply chain practice called design registration has dogged the electronics channel for decades. Distributors support their component suppliers by getting their parts designed in to an OEM end-product. In order to be compensated for that effort, distributors must “register” that design with the supplier. Once the OEM device reaches production, the distributor may receive…
As an electronics sourcing specialist, your goal is undoubtedly to receive the best results from your suppliers. Purchasing electronics and electrical systems brings challenges, but these tips could improve your outcomes. Vet your electronics manufacturing services partners carefully An electronics manufacturing services (EMS) partner handles aspects related to the design, testing and building of electronics…
As augmented and virtual reality (AR/VR) technologies come of age, manufacturers are finding ways to adopt these technologies on a variety of fronts, including product development, training, maintenance, repair and worker safety. Flex, a $25 billion electronics design and manufacturing services (EMS) provider, envisions expanding that universe even further. AR/VR is so important to the…
The scope of Industry 4.0 is so broad that in order to succeed, electronics manufacturers must concentrate on areas of expertise rather than master all new technologies. Otherwise, the industry could be mired in a sea of connected industrial processes. At the same time, this complexity opens doors for atypical partnerships that can enhance new…
If you’re concerned about tariffs and the ongoing trade war with China, you’re not alone. Almost every U.S. OEM is feeling the same pressure, wondering if China is a viable manufacturing location for the future, while stressing over how to quickly select and qualify new suppliers in the U.S. and still get competitive pricing. That’s…
The two-day closure of Hong Kong International Airport (HKIA) had not impacted air cargo as of late Tuesday, although future delays appear inevitable. Given the volume of freight that passes through the airport — 5.1 million metric tons in 2018—any disruption of air traffic can hinder cargo departures. Air freight carriers, including Cathay Pacific, FedEx,…
Editor’s note: This is one of two articles focusing on strategies that mitigate the impact of tariffs on imported goods. Tax and business advisory firm KPMG identified seven successful tactics in its webinar TradeWatch: Section 301 Tariffs; What we’ve Learned in Year One. This article covers recommendations one through three. Tariffs, according to leading tax…
The global electronics manufacturing services (EMS) industry increased its revenue by 15 percent in 2018, according to New Venture Research’s (NVR) annual EMS report, to reach nearly $542 billion. Combined EMS and original design manufacturer (ODM) revenue grew by $70.7 billion in 2018. Revenue growth from 2013 to 2016 had been flat, according to The…
Editor’s Note: This is the second of two articles examining the impact of tariffs — positive and negative–on the electronics industry. For political pundits, the United States government’s tariff strategy is about political leverage. For electronics OEMs, however, tariffs are about business. “As a United States patron, I look at it through the lens of…