Electronic Contract Manufacturing And Design Services Industry

Massive Growth for Electronic Contract Manufacturing And Design Services Industry


Electronics Manufacturing Services (EMS) is a term used to refer to companies that design, manufacture, test, sell, and provide return / repair services for electronic components and assemblies for original equipment manufacturers (OEMs). The concept is also known as Electronics Contract Manufacturing (ECM).

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Some of the key players of Electronic Contract Manufacturing And Design Services Industry:

A&D Precision Inc., East India Technologies Pvt.Ltd, FLEX LTD., Neo Tech Inc., Pivot International, RAYMING, Sanmina Corporation., Sparqtron Corporation, Streamline Electronics Manufacturing, Inc., Venture Corporation Limited

Many consumer electronics products are made in China because of the cost of maintenance, availability of materials, and speed unlike other countries like the United States. Cities like Shenzhen and Penang have become major manufacturing centers for the industry, attracting many consumer electronics companies like Apple Inc. Some companies like Flex and Wistron are both original design manufacturers and electronics manufacturing services providers.

The EMS industry started after the late 1970s when Solectron was founded. At that time, most of the electronics manufacturing for large product runs was taken over by internal assembly. These new companies offered flexibility and eased staffing problems for smaller companies with limited editions. The business model for the EMS industry is to specialize in large economies of scale in manufacturing, raw material procurement and the pooling of resources, know-how in industrial design and the creation of value-added services such as warranty and repairs. This frees the customer who does not have to manufacture and manage large product inventories. As a result, they can react faster and more efficiently to sudden peaks in demand.

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