|
|||
|
|
The Electronic Manufacturing Services (EMS) Industry is expected to grow at a rate of 25% per year to approximately $178 billion in the year 2001. Increasingly, OEMs are taking advantage of the wide range of manufacturing expertise that contract manufacturers are offering:  *Compound Annual Growth Rate Prior to the 1980's, electronic manufacturing services (EMS) were primarily utilized to reduce labor costs and to provide additional manufacturing capabilities. Typically, EMS customers provided all board designs, components and testing. In the 1980's, due to a sudden increase in electronic manufacturing, EMS providers expanded their services to not only provide consignment but complete turnkey services such as product design, materials management, final assembly, and in some cases, after-sale services. Total worldwide revenues for EMS providers in 1997 accounted for approximately 14% of total electronic costs of goods sold, and that number is expected to rise to 26% by the year 2001. OEMs surveyed in the United States and Canada indicate the percentage of their cost of goods sold outsourced will grow from 27% in 1996 to 42% in 2001. In Europe, it has been forecasted to grow from 27% to 33%. Presently, close to 60% of all products produced by EMS providers are for the computer or consumer products industries. Other industries utilizing EMS include automotive, communications, medical and office equipment.
|
||
|
|||
