Insights on contract EMS manufacturing global industry

Mark Zetter INsight

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Economic Factors Impacting EMS Manufacturer Cost Inputs and Electronic OEM Profits

Economic Factors Impacting EMS Manufacturer Cost Inputs and Electronic OEM Profits

Trends in global economic factors like money supply growth, US dollar strength, and borrowing costs significantly shape dynamics between OEMs and EMS providers, influencing cost structures, demand patterns, and decision-making. Rising federal debt levels amplify these pressures, as increased government borrowing strains economic stability and increases uncertainty impacting contract negotiations

From Market Insights to Manufacturing: How Marketing Shapes Electronic OEM Supply Chains

From Market Insights to Manufacturing: How Marketing Shapes Electronic OEM Supply Chains

The role of marketers and marketing departments in electronics firms is adjacent to supply chain functions. In electronics OEM brand firms this is especially true because marketing interacts closely with functions like sourcing and purchasing in ways that influence OEM brand product development, demand planning, and BOM cost management even

EMS Industry Will Be Dragged Kicking and Screaming Into AI

EMS Industry Will Be Dragged Kicking and Screaming Into AI

I posted a watered-down version of this post on Linkedin. I want to share it with subscribers because it got a lot of interest there. I had to pick a title to publish this post. I think it fits. I added some additional context here for subscribers. The graph below,

AI Agents Automate Manufacturing Supply Chain Workflows & Create Opportunity

AI Agents Automate Manufacturing Supply Chain Workflows & Create Opportunity

Industry 4.0 produced disappointing results. System-to-system AI agents are the final frontier for manufacturers to achieve real, large-scale cost reductions and savings.

Request-for-Quote (RFQ) Checklist to Uncover EMS Factory Program Costs and Prepare for Contract Negotiations

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Request-for-Quote (RFQ) Checklist to Uncover EMS Factory Program Costs and Prepare for Contract Negotiations

Below I identify the RFQ items in a checklist for monitoring when preparing quote package for EMS manufacturers to quote price your program. Included is information for defensive posturing before starting contract negotiations for EMS services and fees.

Mad Rush to Create Technology Manufacturing Ecosystems to Attract Income and Tax Receipts

Mad Rush to Create Technology Manufacturing Ecosystems to Attract Income and Tax Receipts

As Trump tariffs take shape and nations begin erecting trade barriers many manufacturers wanting to access the US market economy are tariff-hopping for competitive supply chain positioning. The US will become the primary creditor nation on the world stage. I also believe this will continue into 2027 while more M&

Cost Modeling Electronic Contract Manufacturer Program Quote Pricing of Fees and Services

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Cost Modeling Electronic Contract Manufacturer Program Quote Pricing of Fees and Services

In this post I outline pricing inputs used in EMS manufacturing industry when EMS companies quote price OEM customer programs during the request-for-quote (RFQ) engagement phase. Information is based on years of working in, setting up, and managing EMS factories, divisions, companies and is supported by experience with various client

Hyperscalers - MZ Weekly Thread for February 24, 2025

Hyperscalers - MZ Weekly Thread for February 24, 2025

Trump tariffs and incentives are shaping North American manufacturing capacity with focus on US domestic production. So far, US markets most likely to be impacted include semiconductors, consumer electronics (including components), automotive electronics, and equipment used in broadband and telecommunications industry. AI is part of Trump's America First

AI Agents: MZ Weekly Thread for February 17, 2025

AI Agents: MZ Weekly Thread for February 17, 2025

Agentic AI in manufacturing supply chains: Very soon you will see a mad rush by manufacturers to add as much AI as possible. This week I discuss AI vendors and challenges creating and implementing effective, task-specific AI agents.

MZ Weekly Thread for February 10, 2025

MZ Weekly Thread for February 10, 2025

Chart, graphs and links on inflation, jobs growth, cloud data centers and hyperscalers revenue and growth forecasts, U.S. trading partners, China electronics tariffs, global manufacturing value-add, U.S. jobs growth, Australian export partners and more.

MZ Weekly Thread for February 3, 2025

MZ Weekly Thread for February 3, 2025

Impact of Trump tariffs on Mexico and Canada, foreign manufacturer tariff-hopping, U.S. state-by-state export partners highlighting strategic relationships across borders and overseas, foreign currencies.

MZ Weekly Thread for January 27, 2025

MZ Weekly Thread for January 27, 2025

Thumb on the pulse read: Affluent U.S. consumer showing economic strength. Consumer spending reported by American Express up 9% year-over-year. Up 11% for travel and entertainment (T&E). Monetary Matters host Jack Farley on X says, "it's definitely a lot worse for consumers in the

Building Robust Drone Manufacturing and Supply Chain Capabilities in the USA

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Building Robust Drone Manufacturing and Supply Chain Capabilities in the USA

Avoid drone design and production issues while saving time and money whether you build in-house or source EMS manufacturing services. Includes multiple links to support articles and resources that help vendors and suppliers become more proficient solving problems facing drone manufacturers.

MZ Weekly Thread for January 20, 2025

MZ Weekly Thread for January 20, 2025

According to the Peterson Institute on X @PIIE, if Trump imposes 25% tariffs on Canada and Mexico you can see below where the largest impacted categories would likely be, including transportation equipment and machinery, as well as electronics, other manufacturing segments. Also included this week is country-of-origin components for drone

MZ Weekly Thread for January 13, 2025

MZ Weekly Thread for January 13, 2025

Manufacturing services and trends, China trade, ISM figures, payrolls, German economy, tariffs and more.

MZ Weekly Thread for January 6, 2025

MZ Weekly Thread for January 6, 2025

Each Monday I publish a short thread of stories, charts and graphs I find interesting and I send it to all subscribers of my newsletter. Sometimes I add comments or my opinion. If you also find this post interesting please share it with others.

MZ Weekly Thread for January 3, 2025

MZ Weekly Thread for January 3, 2025

I publish a short thread of stories and data points I find interesting. We’ve identified the next big arenas of competition that will drive economic growth in the new era. These 18 arenas could reshape the global economy, generating $29 trillion to $48 trillion in revenues by 2040. https:

Manufacturing Product Change Notification (PCN) Features for AI and SaaS Product Managers

Manufacturing Product Change Notification (PCN) Features for AI and SaaS Product Managers

The feature is the product. Asking the right questions helps PCN product teams identify solutions that meet manufacturer expectations. Good product managers understand target market needs and can communicate those requirements to technical engineers in house who then build solutions. According to Brian Chesky, cofounder and CEO of Airbnb, building

Deflation Ahead for EU and European Manufacturing Supply Chains

Deflation Ahead for EU and European Manufacturing Supply Chains

Here's what I see happening in Europe, particularly Germany, and what manufacturers and European supply chains are facing. Includes charts and graphs.

Special Preview: Why Some EMS Manufacturers Grow Faster Than Others

Special Preview: Why Some EMS Manufacturers Grow Faster Than Others

Understanding the EMS manufacturing sales process offers several benefits to buyers of EMS services while encouraging EMS providers to improve performance to meet customer expectations for better OEM-EMS relationships.

EMS Manufacturer Deal Flow: Why Some EMS Manufacturers Grow Faster Than Others

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EMS Manufacturer Deal Flow: Why Some EMS Manufacturers Grow Faster Than Others

EMS sales and marketing activity remains integral to drive new business customers despite EMS CEOs wanting to create more value-add and stickier customer relationships. Includes detailed EMS industry marketing and sales cycle info, challenges and solutions.

Template to Manage NRE & PPV Costs in New Product Launch EMS Manufacturing Programs

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Template to Manage NRE & PPV Costs in New Product Launch EMS Manufacturing Programs

Template categories include program tooling, engineering development, testing and includes proof of concept, various validations value-add, and more for your hardware and equipment product programs in EMS manufacturing factories.

Questions to Guide EMS Manufacturer Supplier Development, Accountability and Supply Chain Visibility

Questions to Guide EMS Manufacturer Supplier Development, Accountability and Supply Chain Visibility

Below are some questions asked by OEMs during recent costing labs. Labs accompany training for clients using my costing modeler which determine internal EMS factory program cost vs quote pricing presented to OEM customers. Modelers help OEMs during contract negotiations for fees paid to EMS providers. My modelers also identify

Comparing Services for Contract Electronic EMS Manufacturers, CM, CEM, ECM, ODM, JDM Providers and Product Design Houses

Comparing Services for Contract Electronic EMS Manufacturers, CM, CEM, ECM, ODM, JDM Providers and Product Design Houses

The design and manufacture of electronic hardware equipment products is divided into two primary camps: OEM brand companies and contract electronic solutions providers. This article outlines the electronics OEM brand company business model. I then compare it to the different types of business models in contract electronics solutions industry. I

Port Strike! USMX Maritime Logistics vs Touch Fees Paid to IRL as Manufacturing Supply Chains Suffer

Port Strike! USMX Maritime Logistics vs Touch Fees Paid to IRL as Manufacturing Supply Chains Suffer

At 12:01 on Tuesday October 1, 2024 tens of thousands of dockworkers with the International Longshoremen's Association (ILA) acted on their threat to strike. "USMX brought on this strike when they decided to hold firm to foreign-owned ocean carriers earning billion-dollar profits at United States ports,