Electronics Contract Manufacturing Services Market: Overview

Electronics Contract Manufacturing (ECM), also known as Electronics Manufacturing Services (EMS), is a service outsourced by different companies from all around the world. A very common practice is to offshore or nearshore an EMS provider.

That is why the Electronics Contract Manufacturing Services market is developing uniquely. In this article, we are going to show an overview of an EMS market and suggest the best place to outsource an EMS provider.

Expected growth of EMS industry

Researchers show that the EMS market is going to note an increase in turnover over three consecutive years. Western European EMS market is noting increases in revenue already. What is more, for five more years an average annual growth rate will maintain itself on 2,8%. Particularly beneficial forecasts regard the following industries: aerospace and defense, cosmetics, automotive, control and industrial, medical, and telecom.

Which part of the world would note the most growth?

Analysts emphasize that there would most likely be a transfer of production from the Western European EMS market to other parts of the world. Significant progress will be noted in Central and Eastern European countries, Middle East countries, and countries of North Africa. That is because there is more noticeable pressure on local production and because those parts of the world are willing to offer the lowest price for products of quality. What is worth mentioning, production processes in Central and Eastern Europe will be focused more on the 3C sector (consumer, computing, communications). 

Why is it worth to outsource manufacturing?

Outsourcing an EMS provider is beneficial because then there is no need to buy and manage a whole manufacturing line to manufacture a single product. This solution is being recommended especially for small and medium-sized companies. Outsourced services help to save time, money, and resources – but only if a trustworthy EMS partner has been chosen for the job.

Choosing an EMS provider

An outsourced EMS provider should offer high-end technical infrastructure, professional customer service, and have necessary up-to-date certificates. Remember to always make a thorough research before choosing an EMS provider – ask for work samples and recommendations from previews clients. Communication skills and being fluent in English are also crucial factors that should be taken into consideration while making a decision. It is also a good idea to seek for a service called design for manufacturing (DfM for short, sometimes called a design for manufacture).

The best countries to outsource EMS providers

The best countries to outsource an EMS provider are those that are known for the best cost-efficiency of their work. As the researchers state, there is more demand for services offered by Central and Eastern European EMS providers. CEE countries dominate the European EMS market. At the top of the charts rank the following countries: Hungary, the Czech Republic, and Poland.

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