Electronics Production | November 02, 2009
EMS to see strong growth in Medical, Computer & Consumer
Medical is the end market that offers the most significant growth potential in the long term, with an expected growth at a CAGR of 10.9% from 2008 to 2013. The computer sector is to follow with a CAGR of 9.5% over the next five years.
Both, consumer and communications industries are expected to grow with CAGRs of 7.9% and 7.0%, respectively, through 2013, Lincoln International states in their EMS- Deal Reader. "From 2008 to 2013, the annual growth rates for the industrial, automotive, and defense end markets are expected to be 6.5%, 6.2%, and 5.3% annually, respectively. Overall, the global EMS market is expected to grow 8.1% annually from a $294 billion market in 2008 to a $435 billion market in 2013. It is important to note that although still showing growth, the forecasts are much less aggressive than last year". The shift in production to low-cost regions is starting to wane and most customers are likely to ask their EMS-providers to manufacture close to the actual end market regions. The labor cost differentials for most products are becoming less significant when weighed against the total cost of production, the report states. However, for some high volume products (mobile phones or PCs), EMS-customers need to leverage the lowest cost in manufacturing. Source: Lincoln International Image Source: Assel