| IDC: EMS to Grow 8% in '09 |
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| Written by Mike Buetow | |||
| Monday, 22 December 2008 07:09 | |||
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FRAMINGHAM, MA -- The electronics manufacturing services industry is expected to grow 7.8% next year to $313.7 billion, says IDC. This is down slightly from growth of 9.3% in 2008, the research firm says, citing slowing end-market demand for the drop. "The slower growth rate is the result of decreased computer demand and weakened consumer device segment," said Michael Palma, senior research analyst for electronics manufacturing at IDC, in a press release. "While other segments should also slow significantly, opportunities exist for EMS firms in the industrial sector where OEMs are expected to increase their use of contract manufacturers." The industry grew 20% in 2006 and 16% in 2007, the research firm says. As grow slows, several larger manufacturers face overcapacity, competition from new entrants into specific market segments, and larger internal issues with their business models and value propositions. Moreover, OEMs may be inclined to pull or keep designs and product build in-house. Recently, for example, Alcatel-Lucent announced plans to "in-source" $1 billion worth of product. IDC suggests the global EMS industry will see compound annual growth of 8.1% in 2012 on strength in industrial, automotive, and medical devices, with a rebound for networking equipment in 2010. Computers and consumer electronics are less likely to see major rebounds.
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| Last Updated on Monday, 22 December 2008 07:17 |
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