Electronics manufacturing services

Electronic manufacturing services (EMS) is a term used for companies that design, test, manufacture, distribute, and provide return/repair services for electronic component and assemblies for original equipment manufacturers (OEMs).

History

SCI (then Space Craft Inc.; now Sanmina-SCI) is generally credited for being the first major EMS/contract assembly company in North America.

The EMS industry took off after the late 1970s when Solectron was established. Back then, dozens of small companies existed in the market. These days, while the arena is dominated by a handful of companies such as Hon Hai Precision Industries (Foxconn), Flextronics, Celestica, Sanmina-SCI, Jabil, Elcoteq and a few dozen others, several thousand smaller companies continue to occupy EMS niches.

The business model for the EMS industry is to specialize in large economies of scale in manufacturing, raw materials procurement and pooling together resources, industrial design expertises as well as create added value services such as warranty and repairs. This frees up the customer who does not need to manufacture and keep huge inventories of products. Therefore they can respond to sudden spikes in demand more quickly and efficiently. [http://www.mbtmag.com/printversion.asp?page=www.mbtmag.com/current_issues/2007/april/coverstory1.asp]

EMS manufactured goods are always labeled with the customer's brand and corporate identity.

The EMS industry has undergone a major shift since 2000. During technology's late-1990s heyday, EMS players routinely acquired manufacturing assets in high-cost locations. EMS players largely focused on printed circuit board fabrication, leaving system assembly to the OEMs. And EMS companies largely disdained industries outside the world of information processing (computers) and communications. In recent years, EMS players have shifted production to low-cost geographies; embraced non-traditional industries including consumer electronics, industrial, medical and instrumentation; and added substantial vertical capabilities, stretching from design and ODM through system assembly, test, delivery and logistics, warranty and repair, network services, software and silicon design, and customer service.

EMS have also started to provide design services used in conceptual product development advice and mechanical, electrical and software design assistance. Testing services perform in-circuit, functional, environmental, agency compliance, and analytical laboratory testing. Electronic manufacturing services are located throughout the world. They vary in terms of production capabilities and comply with various quality standards and regulatory requirements.

ee also

*Electronic Contract Manufacturing

References