EMS industry growth still largely tied to PC industry. Competition among EMS / ODMs will continue to keep prices and profit margins low leading to eroding ASPs that will continually challenge EMS and ODM providers.
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Benchmarks & Best Practices
EMS pricing assumptions and economic influences
Mark Larson talks Digi-Key, semiconductors, electronics components, distribution
Larson says performance marketing is rapidly replacing relationship marketing. EMS providers and OEMs recognize committed inventory heavily buffered by uncommitted inventory. Semiconductor chips will continue to address increasingly specific needs of customers. Market forces putting severe competitive pressures on local distributors forcing re-analysis of business models.
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H-1B Visas and maintaining foreign workers on- and off-site
Technology companies rely on international workers across global locations and are the largest users of degreed professionals from other countries. Read about the impact of foreign workers. How do foreign workers influence your organization?
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Electronics distribution executives reveal supply chain insight
Improving product mix slows average selling price (ASP) erosion. Distributors and suppliers may be gaining pricing power. Systems distribution industry should grow faster in 2010 than historical 4% to 6% growth rate. Electronics components distributor Avnet experiencing customers offering to pay for better allocation.
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2010 Semiconductor revenues target $300 billion
This year marks all-time annual high for global semiconductor revenue. Demand for consumer electronics continues to surpass expectations. Global factory revenue for electronics systems could reach $1.5 trillion. Strong sales predicted for PCs, mobile handsets, LCD-TVs, semiconductor-rich systems.
EMS M&A heats up in Q1 2010
Some EMS transactions occur outside core manufacturing activities. Private equity, OEM divestiture activity in the mix. Sanmina-SCI cash cycle worsens. Elcoteq lowers inventory turns. Flextronics increase days payable outstanding.
Q1 Survey of 586 reveals caution in tech supply chain
Many of the 586 survey respondents across North America, Asia and Europe indicated the worst of the recession is behind us but Venture Outsource cautions this does not mean the horizon ahead is calm.
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2010 Report: Global manufacturing labor rates, trends and competitiveness
China had highest rate of labor force participation for persons ages 25 to 54. U.S. remains leading producer of manufactured goods. Largest labor force was combined EU-15 countries. Sweden had highest social insurance costs as a percent of manufacturing hourly compensation. Republic of Korea had largest increase in manufacturing labor productivity.
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New challenges as China REACH regulation matures
Understand how China REACH changes impact your company. China knows what works in global market supply chains and what doesn’t. Do you?
EMS as a growth industry and reasons for optimism
EMS industry underestimated. Growth opportunities seen at numerous EMS companies. Sanmina-SCI in major identity makeover. Flextronics disproportionate beneficiary in computing. Clean tech aids non-traditional EMS sectors. OEMs reevaluate strategies.
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