Sixty percent of companies make offshore-sourcing decisions based on rudimentary metrics, such as wage rate, ex-works price or landed cost, often resulting in a 15 to 30 percent understatement of actual offshoring costs. Inclusion of all relevant factors—overhead, balance sheet, risks, corporate strategy and other external and internal business considerations—provides a better determination of the…
Stuttgart, Germany – Bosch aims to lead the mass market for electromobility that will emerge after 2020. In this endeavor, it is relying on its systems expertise and the development and manufacture of key components of the electrical powertrain, such as the electric motor, power electronics, and battery systems. The company will continue to…
The electronics distribution industry is at an inflection point. Not since the 1990s has there been so much change within both the channel and its supplier base. During that decade, globalization, the internet and M&A changed the face of the supply chain. The same forces are at play now, but the results have been very different.…
The electronics distribution industry is at an inflection point. Not since the 1990s has there been so much change within both the channel and its supplier base. During that decade, globalization, the internet and M&A changed the face of the supply chain. The same forces are at play now, but the results have been very different.…
China is no longer a destination for offshoring — it is becoming more of an an outsourcing economy in its own right. Because certain TFT LCD panels were scarce in 2014, according to IHS, top TV brands turned to TV subcontract manufacturers in China. BOE and TCL were chosen for their semi-set outsourcing and original…
Just last month, the U.S. manufacturing industry increased its employment even though a number of other growth indices decelerated. In its Semi-Annual Economic Forecast, the Institute of Supply Management reported that hiring skilled workers remains a challenge for the domestic manufacturing base. Yet a high-tech hiring program regulated by the U.S. government is raising the…
As electronics component sales and service organizations, distributors assist customers in a variety of ways. Master Electronics of Santa Monica, CA, prefers to call its role “problem-solving.” “We will do anything at this company that makes business sense for ourselves and the customer,” says Riad Nizam, vice president of sales for Master Electronics. “If you…
The electronics industry has never known a contract manufacturer like Foxconn Technology Co. (TPE: 2354). It emerged seemingly out of nowhere, grew into a $132 billion behemoth and altered the market’s geographic makeup by facilitating the massive shift of production to China. Now, the EMS provider wants to set up plants in the United States,…
Readers who have followed my writing in blogs and whitepapers may find this blog out of character. Its premise is that the value delivered by EMS companies (contract manufacturers) is higher than the amount they charge for services. While my message is pay for value, it often comes across as too many are paying too…