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© Photographer / Dreamstime.com Electronics Production | November 07, 2011

EMS revenue increases, shifting production decreases

EMS industry revenue has increased and shifts in production to low cost regions has begun to wane, according to analysis by Lincoln International.
EMS industry revenue increased 37.0% in 2010 from its all time historical low in 2009, said Lincoln International. On a last-12-month 2011 basis, the 15 largest publicly traded EMS providers in the world produced a sales increase of 19.2% versus the same period a year earlier.

Overall EMS LTM revenue has increased for EMS providers across all tiers. Large EMS providers’ revenue grew 20.0% on an LTM 2011 basis versus an increase of 18.5% in 2010. The Mid Tier LTM revenue rose 11.2% relative to an increase of 19.3% in 2010. Small Tier EMS companies grew LTM 2011 revenue by 17.4% compared to an increase of 14.9% in 2010.

Lincoln International said medical, computer and communications markets will continue to lead growth in the future.

The shift in production to low-cost regions is starting to wane with customers requiring their EMS partners to manufacture products near regions are sold. For some products labor cost differentials are less significant when compared to total cost of production Lincoln International said, however some high-volume products still rely on low cost manufacturing.

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