EL SEGUNDO, CA – Despite optimistic remarks from EMS providers and ODMs, the global contract manufacturing industry is unlikely to experience a dramatic recovery in the near-term, says iSuppli Corp.
 
“While there are some mildly encouraging signs, iSuppli believes it isn’t wise to call the market bottom in the contract manufacturing industry at this time,” said Adam Pick, principal analyst for EMS/ODM services at iSuppli. “iSuppli’s latest research indicates that some fundamental issues – including OEM demand levels, excess capacity, margin erosion and solvency concerns – may inhibit a quick turnaround for most EMS/ODM players."
 
There are some small signs of improvement in the EMS/ODM industry, the firm says. For example, revenue for the Top 10 EMS providers declined 16% year-over-year in the first quarter, up two points sequentially.
 
The research firm was responding to jumps in stock prices for Foxconn, Flextronics, Jabil and Sanmina-SCI, which are up 36% to 180% during the past 60 days.
 

• Prev
• Next