OEMs Moving Electronics Product Build to US PDF Print E-mail
Written by Mike Buetow   
Thursday, 16 August 2012 09:15

BANNOCKBURN, IL — Electronics manufacturing operations with a total value of at least $2.5 billion are expected to be brought to North America in the next three years, according to a new survey of some 229 companies.

According to the survey, which was conducted in May, OEMs are driving the transition and China -- where else? -- was taking the brunt of the migration.

Survey results showed that original equipment manufacturers were largely responsible for operations returned to North America from overseas since 2009, accounting for more than 90% of the value and number of jobs brought back. The electronics manufacturing services (EMS) industry was also a big contributor. One-quarter of operations that returned to North American since 2009 came from China, with other countries making up the other 75%.

Companies surveyed for On-Shoring in the Electronics Industry: Trends and Outlook for North America, published this week by IPC, had global revenues totaling more than $935.3 billion, the trade group says. The results are consistent with what other observers, including this magazine, have reported.

The EMS industry accounts for the largest share of overseas operations that participating companies plan to bring back to North America in the next three years. New operations, however, represent a much larger share of future North American production and these planned new operations were reported primarily by OEMs.

Companies cited quality control as the primary reason for bringing operations back to North America from overseas. However, being closer to customers is the driving force for companies establishing new operations in North America.

 

Columns

Eastern-US: China’s New Competitor?

Parity emerges among EMS Factories from Asia, Mexico and the US.

For the first time in years we see parity in the Eastern US among EMS factories from Asia, Mexico and the US. This EMS market condition will permit American OEMs (the EMS industry refers to OEMs as customers) to have more EMS pathways to choose from. Now more than ever, such EMS assignments will require deeper investigation relating to the OEMs’ evaluation of manufacturing strategies.

Read more...
 
The Human Touch

For those who count on the electronics industry for big feats, it’s been a remarkable couple of years.

Read more...
 

Features

Advances in Concentration Monitoring and Closed-Loop Control

Contaminated bath water skews refractive index results. New technology can accurately measure aqueous cleaning agent concentration.

Read more...
 
Circuits Disassembly: Materials Characterization and Failure Analysis

A systematic approach to nonconventional methods of encapsulant removal.

Read more...
 

Search

Search

Login

CB Login

Language

Language

English French German Italian Portuguese Russian Spanish
 

Products

Techspray Introduces Fine-L-Kote High Viscosity AR Conformal Coating
Fine-L-Kote high viscosity AR acrylic conformal coating reportedly widens the process window and flexibility. Can use as-is for dipping or thin down for spray systems. Is for selective spray systems...