Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > Manufacturing/Packaging

Poor economy yanks electronics manufacturing

Posted: 30 Jan 2012 ?? ?Print Version ?Bookmark and Share

Keywords:electronics? contract manufacturing? economic uncertainty?

IHS Inc. has projected a slight decline for the global electronics contract manufacturing business this year. The business information services company revealed that as a result of the economic uncertainty in Europe and the U.S., revenue this year is expected to drop to $357 billion, down by slightly less than one percent from $360 billion last year.

Both the electronic manufacturing services (EMS) and original development manufacturing (ODM) segments of the industry are not projected to perform well for this year. Revenue in the EMS sector this year will be practically flat at $207.5 billion, up by a negligible 0.3 percent from $206.8 billion last year. The ODM sector will be in even worse straits, shrinking 2.3 percent to $150 billion, down from $153 billion.

The anticipated performance for the overall contract manufacturing industry this year represents a big step down from its results last year, particularly during the first half of the year, when growth was solid. Last year, EMS boasted 10.1 percent growth on top of a 34.7 percent increase in revenue in 2009. However, the ODM market already was struggling last year, with a 1.7 percent dip.

EMS/ODM revenue forecast

The global electronics contract manufacturing business is expected to decline slightly to $357 billion.

A bright spot can be discerned, however, coming from the industry's single biggest growth engine: China. Overall expectations point to another round of high single-digit growth this year in that country that accounts for more than half of the contract manufacturing industry's aggregate revenues.

China also has grown to be the world's largest consumption market of smartphones and PCssome of the end products it helps produceso China's pace of growth in those markets will determine how quickly those areas expand.

1???2?Next Page?Last Page

Article Comments - Poor economy yanks electronics manuf...
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top