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Electronics Production | March 15, 2005

Electronics outsourcing will reach $294 billion in 2008

According to an article on Purchasing.com's website both ODMs and EMS companies will show steady growth from now on to 2008.
More OEMs are outsourcing a larger percentage of their manufacturing. About 15% of all electronics manufacturing was in 2003 outsourced to EMS- and ODM companies. By 2007 that percentage will be about 23%.

The growth of the ODM market has attracted the distributors. The distributors sees that serving the ODM market is a key to growth.

“In Asia, ODMs play a big role,” says David West at Arrow.“In North America, customers are focused on developing intellectual property, building product and leveraging their name brand,” says West. “ODMs don’t play much of a role. In Asia, many times it is about cost reduction. The role of the ODM is bigger.”

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