Improved Methods of Supply Chain Information Management and Stronger Partnering Yield Growth

PALO ALTO, Calif.--Nov. 5, 2003--Providing original equipment manufacturers (OEMs) with efficient product portfolio management in the form of accurate information on the product will greatly enhance prospects for electronic manufacturing service (EMS) providers.

New analysis from Frost & Sullivan (www.electronics.frost.com), Maintaining Profitability for EMS Providers in Tough Market Conditions, reveals that revenues in this industry totaled $92.2 billion in 2002 and are projected to reach $334.7 billion by 2008.

"Product lifecycle information management is a process intensive program, which is increasingly being demanded by the OEMs and is very critical during the product introduction and end-of-life stages," states Frost & Sullivan Research Analyst Bhargava Attada.

The product definition as well as technical and market details, provided as an effort to partner with OEMS, greatly reduces the time to market and helps to maintain the competitive edge over mid- and low-tier manufacturers that do not have proper systems in place.

Overcoming hurdles such as inaccurate product information from the OEMs and inadequate knowledge about emerging technologies will cut costs and positively impact growth in the long-term period.

Keeping pace with the new product entrants is proving to be a challenge since electronics has gained a foothold in many cutting-edge fields due to the increasing demand for telecom, computing, and consumer electronics in the Asian markets.

"With the growing relocation of manufacturing facilities to low cost areas in Asia, the Asian markets are expected to expand at the cost of North American and European regions," observes Attada.

With declining revenues in conventional segments, EMS providers that focus their efforts on medical, automotive, and emerging technologies such as MEMS, Bluetooth devices, and biometrics are expected to sustain profits.

Aggressive marketing in non-traditional segments where outsourcing is very profitable for the OEMs will increase revenues.

Since the manufacturing technology in these segments of the electronics industry are in a constant state of flux, equipment and assembly processes need upgrades that will require a large capital investment.

EMS providers that gather the resources to facilitate research and development to keep pace with these innovations will emerge winners in this dynamic market.

Maintaining Profitability for EMS Providers in Tough Market Conditions is part of the Electronic Manufacturing Subscription. Executive summaries and interviews are available to the press.

Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies include custom strategic consulting, market intelligence and management training. Our mission is to forge partnerships with our clients' management teams to deliver market insights and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers and support staff, spans the globe with offices in every major country.

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