EMS Survey Shows Growth.An increasing share of electronics manufacturing services Electronic manufacturing services (EMS) is term used for companies that design, test, manufacture, distribute and provide return/repair services for electronic component and assemblies for original equipment manufacturers (OEMs). (EMS) companies are shifting more rapidly to the low wage regions of Asia, Europe and South America, according to the study, Quarterly Forum for Electronics Manufacturing Outsourcing and Supply Chain. The study was recently published by Technology Forecasters, Inc. (TFI TFI Tobacco Free Initiative (World Health Organization)
TFI The Franklin Institute (Philadelphia, Pennsylvania)
TFI The Fertilizer Institute
TFI Technology Futures, Inc. , Alameda, CA).
The survey identified EMS demand and supply for six regions: Asia; Japan; N. America; Europe; South America; and Emerging Markets. Automation is a worldwide trend, and the survey shows no slowing of the migration of manufacturing to regions offering lower-cost labor, access to reasonably priced materials and customer proximity.
Also according to the survey, smaller EMS companies are performing better than the largest EMS companies in gross margin, net profit and return on assets Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). . Companies were benchmarked by 10 productivity measures against similarly sized companies by revenue. The growth rates Growth Rates
The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.
Remember, historically high growth rates don't always mean a high rate of growth looking into the future. experienced by two groups-companies with revenue greater than $1 billion and companies with revenue of more than $500 billion, but less than $1 billion-are tremendous. The entire sample grew at an average rate of 49 percent; EMS companies, with revenues between $100 million and $200 million, grew at 17 percent-the sample's slowest growth rate.
For more information on this survey, visit www.techforecasters.com.
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