More changes to manufacturing supply chains are coming. Whether executive teams are tasked with re-shoring/near-shoring or, simply ‘get out of China’ mandates, reasons for moving manufacturing destinations range from political policies, national and economic security, trade tariffs, currency exchange rates, corporate spend and cost management, to name a few. Regardless of the reason, manufacturing cost of capital for has increased and will continue to do so for the foreseeable future.
How manufacturers set manufacturing supply chain strategy and, whether or not programs adhering to that strategy return desired ROI against timelines imposed by boards and CEOs will be path-dependent and hinge on a number of data sources decisions.
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Savvy OEM manufacturers can determine actual EMS manufacturing internal factory costs across all manufacturing regions and countries, including worldwide currency exchange rates, to optimize fees paid for SMT and PCB and electro-mechanical assembly services and lower total cost of ownership (TCO) or landed target costs.
EMS industry benchmark pricing data is included in our contract manufacturing cost models, which are based on the most accurate information and informed assumptions in the electronic manufacturing industry – and clearly reveal a path to OEM profitability.
Average program savings range from 5 percent to 15+ percent. If you want to see how our models apply to your manufacturing program, learn more here.
For deeper insight
How to find, evaluate, and manage EMS manufacturing providers
Internal EMS factory costs vs EMS pricing vs OEM quoted fees
The growing manufacturing cost of capital
EMS vendor disclosure (sales) vs OEM customer discovery (reality)
Quote/RFQ best practices for EMS manufacturing programs
EMS industry professional documents
Worldwide EMS manufacturer directory with EMS factory destinations
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For additional info on opportunities and strategy, search our website using keywords to help you find best practices for SMT PCB assembly and electro-mechanical assembly programs pricing, manufacturing contracts, contract negotiations, and more.
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