Western Electronics CEO Rob Subia talks about hiring, OEM customer trust, and more…
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Industry Pulse
The EMS corner office project launches with Western Electronics’ Rob Subia
EMS, ODM recovery tied to consumer electronics
Hon Hai and several ODMs investing in optoelectronics to take advantage of growing LED TV market. OEMs increasingly turn to third parties for product design. ODM sector increases share of overall electronics contract manufacturing revenues to 45%. EMS industry expected to grow consistently for next five years, with 8% CAGR, ODMs with slightly stronger CAGR of 9%.
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EMS pricing assumptions and economic influences
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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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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Semiconductors, printed circuit boards, computers raise Malaysian manufacturing
First three months of year shows 24% growth in sales value of manufacturing sector. Average sales value per employee in March was 26% higher vs. same month last year. Total number of employees engaged in manufacturing sector in March 2010 rose 1.1%.
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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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?
