Global Sourcing Spotlight: Tariffs—The New Reality
Knocking Down the Bone Pile: Gold Mitigation for Class 2 Electronics
Punching Out: Your Financial Preparation for a Sale
New IPC Report Assesses Growth Potential in North American EMS Industry
September 7, 2018 | IPCEstimated reading time: 1 minute
The North American electronics manufacturing services (EMS) industry has an $81 billion served available market with great potential for further growth, according to IPC’s 2018 Annual Report and Forecast for the North American EMS Industry, published this week. An analysis of the market indicates that the North American EMS industry has penetrated only about 28% of the total available market based on what OEMs in the region could outsource. Forecasts contributed by New Venture Research predict steady growth for the EMS industry through 2022, both globally and in North America.
The rate of sales growth for the participants in IPC’s North American EMS Statistical Program has increased every year since 2014, reaching 10.5% year-over-year in 2017. EMS order backlogs as percentages of sales have also grown steadily over the past five years. The largest vertical market for the program participants in 2017 was industrial electronics, which captured 37% of their aggregate sales. Revenue by product type, percentages of domestic production, number of EMS facilities and historical growth trends are also reported.
The report also covers aggregate financial and operational measurements of the participating companies in 2017 by company size tier. The smallest companies reported the highest profit margins, EBITDA and return on value added. An overview of the cost structure of North American EMS companies by size tier delves into percentages of direct labor; direct materials; direct overhead; and sales, general and administrative costs. Other measurements reported include revenue per employee, cash-to-cash cycle time, days sales outstanding, days of supply in inventory and capacity utilization.
The data on sales, orders, production, operations and financial measurements is from 86 companies that participated in IPC’s North American EMS Statistical Program in 2017, most of which are small and medium-sized companies.
About IPC
IPC is a global industry association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 4,300 member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $2 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Washington, D.C.; Atlanta, Ga.; Brussels, Belgium; Stockholm, Sweden; Moscow, Russia; Bangalore and New Delhi, India; Bangkok, Thailand; and Qingdao, Shanghai, Shenzhen, Chengdu, Suzhou and Beijing, China. For more information, click here.
Share on:
Suggested Items
4FRONT Solutions Invests in Seica’s PILOT V8 NEXT Flying Probe Tester to Enhance Test Capabilities at DeLand, FL Facility
05/16/2025 | Seica, Inc.Seica, Inc. is pleased to announce that 4FRONT Solutions has purchased and installed a PILOT V8 NEXT Flying Probe Tester at its electronics manufacturing facility in DeLand, Florida.
Flexible PCB Market to Reach $61.75B by 2032, Driven by the Demand for Compact Electronics, Automotive and Medical Applications
05/16/2025 | Globe NewswireAccording to the SNS Insider, “The Flexible PCB Market was valued at USD 21.42 billion in 2023 and is expected to reach $61.75 billion by 2032, growing at a CAGR of 12.52% over the forecast period 2024-2032.”
DuPont Unveils Brand Identity for Qnity, Future Electronics Spin-Off
05/15/2025 | PRNewswireDuPont unveiled the branding of Qnity, the planned independent Electronics public company that will be created through the intended spin-off of its Electronics business*.
K & F Electronics Invests in Workforce Training with IPC-A-610
05/15/2025 | K & F ElectronicsIn a strategic move to prioritize employee development and uphold quality standards, K & F Electronics, a third-generation, family-owned printed circuit board (PCB) manufacturer based in Fraser, Michigan, used a recent period of reduced production to certify its employees in IPC-A-610, the industry standard for the acceptability of electronic assemblies.
Canadian Circuits Inc. Unveils Rapid Prototype PCB Assembly Service to Accelerate Innovation
05/14/2025 | Canadian Circuits, Inc.Canadian Circuits Inc. (CCI), a leading provider of high-quality, made-in-Canada, Printed Circuit Board (PCB) solutions, is proud to announce the launch of its Prototype PCB Assembly (PCBA) service. This new offering enhances CCI’s commitment to empowering engineers and OEMs by accelerating the journey from concept to product launch with precision and efficiency in electronics manufacturing.