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Electronics Production | June 17, 2008

Outsourcing trends in the EMS industry are changing

Outsourcing trends within the EMS industry start to change, if not reverse, many companies have approached outsourcing in a very minimalist way.
David Bance at Prism Electronics noted that there are three main reasons for this change. Many companies have approached outsourcing in a very minimalist way – looking at the ultimate cost reductions. However, most companies can not predict demand efficiently, which makes calculating costs somewhat of a challenge. Last but not least, Mr Bance states that there are additional problems due to language barriers, cultural differences, time zones and legal systems, etc. David Bance told Cambridge Networks at the Electronics Knowledge Transfer Network (EKTN) that the "Outsourcing in electronics manufacture is changing and some recent trends are reversing, including off-shoring manufacture among smaller OEMs. Manufacturing is now being brought back closer to home”. Placing production close to end consumer markets, suppliers, etc. will ultimately reduce costs and will ease communication problems within the supply chain.

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