Contract Manufacturers Feeling The Pinch

March 12, 2009
Market researcher iSuppli is reporting a major downturn in an important part of electronics, the electronics manufacturing services (EMS) sector, in 2008 compared to previous years. In 2008, the collective revenue for the world's top 10 EMS providers ...

Market researcher iSuppli is reporting a major downturn in an important part of electronics, the electronics manufacturing services (EMS) sector, in 2008 compared to previous years. In 2008, the collective revenue for the world's top 10 EMS providers amounted to $129.9 billion, or a drop of 2.8 percent from the $133.6 billion reported in 2007. In contrast, that figure in 2007 represented a 19.2-percent growth over 2006. It marked the first time since 2002 that the top 10 EMS providers saw their aggregate revenue decline on an annual basis.

According to Adam Pick, Principal Analyst for EMS and ODM services for iSuppli, "The EMS industry has moved well beyond the inflection point and has been decelerating for some time. The data coming out of the industry has been indicating a state of slowdown for the last 12 months." Much of the economic woes are blamed on a steep decline in consumer demand and profit deterioration due to exchange rates between US dollars and foreign currencies. The numbers for the EMS industry can be found in the latest iSuppli report, "A Slippery Slope for Contract Manufacturers."

About the Author

Jack Browne | Technical Contributor

Jack Browne, Technical Contributor, has worked in technical publishing for over 30 years. He managed the content and production of three technical journals while at the American Institute of Physics, including Medical Physics and the Journal of Vacuum Science & Technology. He has been a Publisher and Editor for Penton Media, started the firm’s Wireless Symposium & Exhibition trade show in 1993, and currently serves as Technical Contributor for that company's Microwaves & RF magazine. Browne, who holds a BS in Mathematics from City College of New York and BA degrees in English and Philosophy from Fordham University, is a member of the IEEE.

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