EMS/ODM market is shrinking

The electronics contract-manufacturing industry revenue is supposed to expand to $432.3 billion by 2012, rising for the compound annual growth rate by 7.2% from 2007. This is a slowdown compared to the compound annual growth rate by 15.5% between 2002 and 2007 and 49% during 1990s. Adam Pick analyst at iSuppli told EDN, “As many of the larger CMs attempt to retrench and 'right-size' their businesses, revenue growth has become stagnant or even negative.” Therefore, he says, “an examination of possible acquisition targets becomes a top priority for larger companies.”