Electronics Production | September 12, 2007

Medical electronics demands new<br>competencies from manufacturers

According to Bill Roberts from Technology Forcasters, contract manufacturers (CM) have spent time and effort to call themselves “EMS" providers because the do more then just manufacturing. However Solectron's medical division still only prefers the name CM.
This says more about the differences between medical equipment and other electronics. To get the medical deals, Contract Manufacturers need to broaden their core competencies beyond what is normally associated with electronics. "In the medical segment, we've changed the moniker from EMS to the broader term of CM because we are broader than electronics in servicing this market.", Dick Rubin, director of marketing for Solectron's medical business said.

The medical segment has higher margins then other electronics, and the segment is growing for the CMs. “If the contract manufacturers wants to secure a share of that market, they must acquire expertise in technology, quality systems, and documentation", Roberts claims.

According to recent research by Technology Forecasters the total outsourcing for medical electronics is expected to rise from a current penetration rate of 12 % to 14 % by 2010.


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