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Key Points in the Growth and Future of Electronic Manufacturing Services

Electronic manufacturing services, which were nonexistent only a few decades ago, continue to evolve into more than just the makers of circuit boards today. The need for these services on the other hand is set on a steep rise as more demand for all manner of electronic goods stems up in all corners of the globe. Even without an elaborate research, it is definite that EMS will remain very relevant now and in the foreseeable future.

Earlier on, companies that made large scale electronic goods used to manufacture the electronic components of their products for themselves. By the end of the 1970s, independent manufacturers came up and started providing the manufacturing services to those companies. This new kind of business form came to be known as electronic contract manufacturing. The companies that offered the services undertook the tasks of designing, testing, manufacturing and assembling of the electronics parts for the equipment manufacturer.

Studies show that electronic manufacturing services (EMS) have become a key player in today’s electronics industry. These services provide flexibility and economies of scale to equipment manufacturers, and have led to the success of even the small scale companies that have little infrastructure setup for manufacturing. The manufacturing process of electronic components is quite demanding, and that is where the outsourced manufacturers base their business models. The electronics manufacturing companies specialize in the acquisition of large raw material stocks and engage in big economies of scale while manufacturing for more than one client. They also provide value added services such as handling repair and return after sales services. Researches done to establish how effective this strategy is have all concluded that this model of business saves the clients a lot in terms of manpower, time, resources and logistics among other factors.

Researchers have also noted that electronics products today are becoming much cheaper even as they become more superior and technologically advanced. This is a phenomenon that they credit largely to involvement of EMS. Manufacturers are today more obliged to work with others as most of the processes and raw materials they need involve intermediary components which the other manufactures specialize with. A strong relationship has been fostered between companies that develop electronic equipment and those that manufacture the parts. Their interdependence has seen them employ cost cutting measures such as locating close to one another to reduce transport and other logistical costs. Ongoing research now hopes to provide clues as to whether the presence of the electronic manufacturers is responsible for the fast paced growth in innovations being witnessed today.

The global electronic manufacture industry is big, and it involves the manufacture and assembly of electronic products for both domestic and professional use. Apart from the use of electronics at home or in the offices, other industries and factories that manufacture other goods also require some form of electronics in their manufacturing processes. As a consequence of this fact, research into impacts of EMS now goes much further than just the electronics industry. It appears that even as industries and manufacturers push global development, there exists a whole other industry behind them that provides the actual manufacture of the necessary components.

EMS providers who were once only suppliers of the manufactured components have now also started providing assistance in design, conceptualization, software design and other sections of product development. This has been seen by researchers as a means of staying on top of the competition as more and more EMS pop up around the globe.

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maheshsharma • June 19, 2014

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