Includes specific questions EMS manufacturers should ask their banks about bank balance sheet risk that can turn a bank from being illicit to insolvent.
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Cost Reductions, Finance
Act now: Banking and capital finance risks to contract electronics industry and manufacturers
Unplugged: Examining reasons behind financial woes facing some contract electronics solutions providers
Electronic OEM equipment manufacturers want to sleep at night knowing their contract electronics provider partner is taking care of the OEM’s business interests, yet every industry has its risks and the contract electronics industry is no different. Risks for contract …
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Top 5 challenges when designing drones
One of the main challenges when designing an unmanned aerial vehicle (UAV), or drone, is ensuring that it can fly smoothly and maintain stability, even in adverse weather conditions or when faced with obstacles. Achieving this requires careful attention to …
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Manufacturing inventory metrics to avoid costly production mistakes
Focusing on the most challenging segment of the purchase order-to-warehouse sequence of events can vary depending on the specific manufacturing supply chain situation and industry. However, one common challenge that many manufacturers face is managing inventory levels effectively. Inventory …
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Ways to protect profit erosion for electronics equipment manufacturers
Below are some of the way electronics equipment manufacturers can protect against profit erosion and while maintaining a strong position in the market. (Read about new product launch costs vs product upgrade costs, here) Investing in research and development can …
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Costing modeler sourcing, manufacturing and assembly of electric vehicles: Tesla Model Y
The amount of technology and electronics in new vehicles is growing each year. From sophisticated vehicle electronic control units (ECU) to manage everything to all electric vehicles (EV), plus the vast array of ever-increasing functional technology and hardware. Take into …
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What is a MOQ agreement and how is it different from a MOR agreement?
A MOQ (minimum order quantity) agreement is one type of the many contracts often between a vendor or supplier, such as a non-OEM components manufacturer, and a OEM manufacturer (or contract electronics provider) in which the OEM buyer agrees to …
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Acquiring success: The latest trends in contract electronics mergers and acquisitions
Many contract manufacturers in the hyper-competitive middle market contract electronics industry continue to face increasing pressures on various fronts. Whether from problems associated with finding customers, followed by challenges retaining and growing those customer programs (most top-line industry growth is …
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Equipment pricing strategy: How currency exchange rates impact manufacturing costs
Currency exchange rates can have a significant impact on manufacturing costs for electronics companies that import raw materials, components, or finished goods from other countries. When the value of a foreign currency decreases, compared to the manufacturer’s domestic currency, the …
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EMS manufacturing factory labor cost checklist review for OEM equipment manufacturers sourcing EMS services
Electronics contract EMS manufacturers will price direct labor (DL) costs into quoted pricing during RFQ phases with OEM prospects and existing customers seeking EMS services. Many electronics OEM equipment manufacturers recognize DL costs tied to MCOGs. But, what many OEMs …
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