Global Citizenship: What I’ve Learned About the American PCB Business
Global Sourcing Spotlight: The Best Products to Buy Offshore Through Global Sourcing
Nolan's Notes: The Rise (and Risk) of Data
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
PCB Design Software Market Expected to Hit $9.2B by 2031
11/21/2024 | openPRThis report provides an overview of the PCB design software market, detailing key market drivers, challenges, technological advancements, regional dynamics, and future trends. With a projected compound annual growth rate (CAGR) of 13.4% from 2024 to 2031, the market is expected to grow from USD 3.9 billion in 2024 to USD 9.2 billion by 2031.
IPC Issues Clarion Call for EU to Reclaim Leadership in Electronics Manufacturing
11/21/2024 | IPCIPC released a synopsis of its recent white paper, Securing the European Union’s Electronics Ecosystem. This condensed document presents a comprehensive overview of the current challenges in Europe’s electronics manufacturing industry and shares actionable steps to help the EU achieve a stronger, more autonomous ecosystem.
IPC Celebrates National Apprenticeship Week with a Focus on Electronics Manufacturing Excellence
11/19/2024 | IPCIPC, a leading global electronics industry association and source for industry standards, training and advocacy, is proud to announce its participation in National Apprenticeship Week, scheduled for November 17-23, 2024.
IPC Introduces First Standard for In-Mold Electronics
11/18/2024 | IPCIPC announces the release of IPC-8401, Guidelines for In-Mold Electronics. IPC-8401 addresses in-mold electronics (IME) technology, providing industry consensus on guidelines for manufacturing processes, part structures, material selection, and production test methods to integrate printed electronics and components into 3D smart structures.
Disruptive Innovation and Generative AI Inventor, Kevin Surace, to Keynote IPC APEX EXPO 2025
11/15/2024 | IPCEach year, IPC APEX EXPO features industry’s most dynamic, innovative minds to deliver keynote presentations that are both educational and entertaining. IPC APEX EXPO 2025 will feature Kevin Surace, an internationally renowned futurist and generative artificial intelligence (AI) innovator.