Electronics Production | June 01, 2008
EMS/ODM industry set to undergo slowdown
iSuppli Corp. has trimmed its long-term growth forecast for global electronics contract-manufacturing revenue to 8 percent during the 2006 to 2013 timeframe, down from its previous outlook of a 9.3 percent expansion.
“Reasons for the downgrade include the large combined size of the $305 billion Electronics Manufacturing Services (EMS) and Original Design Manufacturing (ODM) businesses, which make it difficult to achieve significant percentage growth in revenue,” said Adam Pick, principal analyst for EMS/ODM at iSuppli. “Furthermore, leading EMS provider Foxconn, which has driven much of the growth in the EMS segment of the contract manufacturing market, is beginning to undergo a deceleration. Finally, many EMS/ODM players are rethinking their strategy of pursuing market share expansion and are focusing on their competitive positioning and financial performance.” What other changes will the global electronics contract manufacturing industry see by the year 2013? Based on interviews with 25 leaders in each node of the contract-manufacturing value chain—including OEMs, EMS, ODMs and component suppliers—iSuppli has evaluated the future of contract manufacturing, leading to an array of unique findings that will take the industry from where it is today to where it will be in five years. As a result of these interviews, several major themes impacting the future of contract manufacturing have emerged: • CM Industrial Structure Transformation • OEM Engagement Models • EMS/ODM Service Offerings • Component Supplier Strategies • Global Capacity Rebalancing “During the next five years, industrial forces will trigger an evolutionary transformation within the EMS/ODM marketplace,” Pick said. “Consolidation, OEM procurement strategies, alternative supplier theories, , competitive collaboration networks, and new contract manufacturing strategies will affect the value chain.” Find out what the EMS/ODM industry will look like in 2013 by joining Pick for a unique Webinar entitled: EMS/ODM Transforms by 2013 held on Wednesday, Jun. 4 at 8:30 a.m. U.S. Pacific time. Image is not part of the article.
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