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Component supplies, prices, and lead times are in a great deal of turmoil. And there are a LOT of moving parts to this set of circumstances, ranging from a sustained increase in demand for parts, to pricing pressures on manufacturers and premature parts obsolescence. All of these factors wreak havoc on electronics manufacturing.
In this month's issue of SMT007 Magazine, we explore the drivers and the coping mechanisms from all points of the supply chain.
Read the January 2019 issue of SMT007 Magazine, now on the virtual newsstand, and available for delivery in your e-mailbox by subscribing here.
Be sure to download the PDF version for future reference.
Mark Wolfe, IPC
The role of electronic manufacturing services (EMS) companies is very often misunderstood. Some perspectives, however, are helpful to frame the question of what is on their minds, especially in the current global environment. EMS companies build products but they are not really “product” companies. While they may provide design services, the designs are still owned by their customers. As a result, they do not have the right to select or change components. In most cases, the EMS company will still be responsible for purchasing these components which are typically 70–90% of their cost to produce the end products. They also do not determine what volumes should be built.
Tracy Riggan, IPC
The EMS Leadership Summit at IPC APEX EXPO 2023 welcomed over 60 EMS provider and contract manufacturing professionals, many of whom were first-time attendees, with a compelling agenda that provided an opportunity to discuss and solve business problems, build business networks, and share insights about how to do business better.
I-Connect007 Editorial Team
Managing the supply chain for electronics manufacturing has always been challenging. About 70-80% of the cost of building an electronic product is for the parts, while the remaining cost is in the process to assemble and test the product. However, during the worldwide pandemic, the strain on the overall supply chain for any product has been stretched to the breaking point. When supply of toilet paper, hand towels, and sanitizer is disrupted and cannot be found on the grocery store shelves, one could imagine the challenges in a similarly disrupted supply chain of efficiently acquiring complex electronic components.