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  • Seven Questions for OEMs and EMS/ODMs

  • May 24, 2011

    1) Are you getting push-back from your "low-labor cost region" EMS/ODM supplier? Rising labor costs in China have re-written the rules for global manufacturing. If your company hasn't done the math recently, you are in for a surprise. What's happened  to "The China Price" in electronics manufacturing?

    2) Understanding the financial health of a public company is easy but how do you assess risk if your outsourcing solution is privately held? What are the insider insights you need to bypass the marketing spin and make quick and accurate appraisals of your electronics manufacturing supply-solution?

    3) No one wants to pay too much for outsourcing but everyone knows that if the price gets too low,  a catastrophic failure of the supply-solution is probably inevitable. What are the signs that an OEM has driven the price so low that the relationship is broken to the point that the EMS is going to kick them out?

    4) The economic recovery and favorable lending environment has sparked a marked improvement in M&A within the EMS industry. But a finite universe of quality EMS providers is leading to a "land grab" below the Tier II level. What will the competitive landscape in the mid-market look like over the next two years?

    5) A decade ago, automobile production in China, India, and Brazil together equaled about 40% of U.S. production.  Last year, India and Brazil together equaled the U.S.  and U.S. production was only about 40% of China's.  What forces will structure the automotive electronics industry in the next decade?

    6) A decade ago, audio equipment, digital cameras, camcorders, and portable game devices, were each important segments of the consumer electronics industry.  Today, these segments have essentially disappeared.  Like dinosaurs evolving into birds, they've transformed into features on a cell phone and a handful of niche products.  What will consumer electronics look like in the next decade?

    7) About 10% of U.S. electrical generation, and 4% of world electrical generation, goes to run the Internet.  As the growth rate in data volume outstrips efficiency gains in servers, where will we find all the electrons?

  • [Close]  [Print] Time:2011-5-25
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