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Wednesday, 01/30/2002 8:14:52 PM

Wednesday, January 30, 2002 8:14:52 PM

Post# of 93824
Tech Makers...
Interesting article in this month's newletter from Louis Rukeyser discussing the growth prospects for EMS (electronics manufacturing services) companies.

Analysts expect EMS firms to prosper in the long-term as their customers, the OEMs, increasingly outsource production in order to focus on design and markting, cut manufacturing costs and reduce the time to get new products to market. Just 15% of all electronics manufacturing is now farmed out to EMS providers, a percentage that is expected to double in the next 3 years.
The largest EMS providers are just starting to attract contracts to provide support services (customer service, help-desk support, and maintenance, repair and warranty services) as OEMs realize they can save even more money by outsourcing these tasks. Overseas, while Japan accounts for 25% to 30% of worldwide electronics manufacturing, the EMS penetration is less than 5%.



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