2011 EMS industry perspective reveals risks for Flextronics, Sanmina-SCI, Jabil Circuit, Benchmark Electronics, Plexus. 2010 program wins can take 12 to 18 months to ramp. Possible return to M&A across EMS sector. Increased focus on non-traditional EMS markets. Overall 2010 YTD performance lags notably due to magnitude of mid-2010 decline.
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Trends & Observations
2011 Electronics manufacturing services (EMS) outlook with 2010 review
Questions surface on 2009-2014 global EMS industry forecast
Hong Kong-based EMS provider questions recent worldwide EMS industry forecast – comparing combined revenues from the top 50 EMS providers with values for the forecasted period and total available market (TAM). Perhaps other readers have the same question?
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Worldwide EMS / ODM five year forecasts deals blow to pure ODM model, reflects trends and challenges for industry, OEMs
IDC’s five year forecast (2009 – 2014, see chart) for the worldwide EMS and ODM sectors, plus worldwide total EMS industry, reflects the cost (spend) for product outsource design and manufacturing services and MCOGs sourced to EMS and ODM companies across the Americas, Europe and Asia.
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EMS provider OnCore CEO interview
OnCore electronics services CEO talk about end markets the provider serves and challenges taking place in industrial, medical and defense / aerospace electronics sectors.
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Breakdown of electronics end markets served by top EMS providers
Non-traditional EMS markets make up larger portion of business for smaller EMS providers such as Benchmark Electronics, Plexus. Automotive, medical electronics believed to be pivotal components to helping EMS market out of the recession. Also, covers Foxconn, Hon Hai, Jabil Circuit, Flextronics, Sanmina-SCI, Celestica.
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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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