EMS suppliers look to India.India is becoming an important stop for major 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) providers seeking a low-cost manufacturing destination. As EMS providers expand in China, many are studying India's large, skilled labor pool. "Incrementally, India will be a location [to which] EMS companies will gravitate grav·i·tate intr.v. grav·i·tat·ed, grav·i·tat·ing, grav·i·tates 1. To move in response to the force of gravity. 2. To move downward. 3. some of their business as they chase the labor curve around the planet," said Roger Norberg, an analyst at J.P. Morgan Chase & Co. (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY). "Every large EMS company is at least investigating what opportunities are there." India boasts approximately one billion consumers who are attractive to major original equipment manufacturers (OEMs) with operations in the region. India's information technology (IT) sector features 522,000 software and service professionals and more than 140,000 software developers. India's hardware sector has grown between 30 and 35 percent annually over the last decade. India's hardware industry generated $2.9 billion in revenue in 2001, but the EMS industry is aware that India does not possess the infrastructure needed to support the supply chain. This lack of infrastructure, and concerns about logistics and a limited supplier base, keep many EMS providers standing on the sidelines On the sidelines An investor who decides not to invest due to market uncertainty. on the sidelines Of or relating to investors who, having assessed the market, have decided to avoid committing their funds. . In 2000, China's per capita income Noun 1. per capita income - the total national income divided by the number of people in the nation income - the financial gain (earned or unearned) accruing over a given period of time was $3,940.00, compared to $2,390.00 in India, based on purchasing-power-parity exchange rates. A typical worker in China is paid 65 percent more than an Indian worker; still, India boasts a larger middle class. Norberg believes EMS providers need to take many things into account when looking to India. "While labor is cheap, you could get buried under everything else. If you build a factory and the power goes out four times a day, do you make money doing that? There's probably a number of years needed as a learning curve to deal with the infrastructure, government and regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. issues." |
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