IPC: EMS Growth Set to Resume

Electronics manufacturing services (EMS) providers – with the possible exception of mega-EMS Foxconn – have been struggling to maintain the kind of growth they have experienced in prior years. That’s unlikely to resume given the single-digit profit margins that have become SOP for the industry. However, according to the IPC — Association Connecting Electronics Industries® ,…

Where Does EMS Head Next?

The logic behind the concept made enormous sense when OEMs first began focusing on core competencies decades ago. Manufacturing became the main function of specialized contractors such as Flextronics, Solectron, Sanmina, Jabil, Celestica and others while OEMs like IBM Corp., instead of investing in manufacturing plants, concentrated on developing technology, leaving the assembly to the…

EMS Providers Just Can’t Stop the Cost-Cutting

Contract manufacturers may be able to one day put away their cost-cutting scalpel but that won’t be for a while going by events in the market today. In the electronics manufacturing services (EMS) sector, cost-cutting and never-ending rounds of corporate reorganizations have become a way of life as customers and their contractors engage in a…

What Apple’s Sales Cut Means for Purchasing

A 20 percent reduction in Apple Inc.’s iPhone forecast as speculated in some quarters may spell relief for many procurement and purchasing professionals at small and medium OEMs and EMS providers. When demand for Apple devices are at record highs, it’s obvious component buyers at even many of its bigger rivals feel pressured; It’s not…