Fueled by Electronics, Reshoring Accelerates in 2023

U.S. reshoring has turned the tide into positive territory, according to business consultancy Kearney, while the Reshoring Initiative reports record onshore job creation in the first half of 2023.The two organizations are rarely on the same page when it comes to U.S. reshoring trends as they measure the activity differently. But between 2022 and 2023, all data points to an increase in jobs created and products manufactured in the United States.

Source: Fueled by Electronics, Reshoring Accelerates in 2023

Can India’s Emerging Electronics Industry Compete with China? 

The pandemic, last year’s global supply chain challenges, and this year’s conflict in Eastern Europe make the case for why it’s important for a country to diversify the sources of its imports. Now, with a China-Taiwan situation brewing, the U.S. needs more than ever to loosen China’s grip on its electronics market. This move isn’t political, it’s purely practical. It’s about minimizing risk. And it makes sense right now because there is a new emerging market vying to meet American consumer demand: India. American importers have been cautious about forming long-term deals with Indian electronics manufacturers, and rightfully so. In the past, political instability as well as a complex set of tariff laws made trade with India difficult. So what has changed? For the past several years, India’s government has been stable, with a focus on luring foreign countries to invest in their growing manufacturing base.

Source: Can India’s Emerging Electronics Industry Compete with China? · EMSNow

IPC: Americas EMS Industry Down 7.6% in June

IPC announced today the June 2022 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.39.Total North American EMS shipments in June 2022 were down 7.6 percent compared to the same month last year. Compared to the preceding month, June shipments increased 9.6 percent. EMS bookings in June decreased 13.9 percent year-over-year and increased 12.0 percent from the previous month.

Source: IPC: Americas EMS Industry Down 7.6% in June – EPS News

Jabil to invest US$400 million in Jalisco 

JALISCO – The U.S. technology company Jabil Circuit confirmed an investment of US$400 million to create 6,000 new jobs in Jalisco this year, as announced by Governor Enrique Alfaro Ramirez, during his promotional tour of the Silicon Valley in San Jose, California. “It is great news that speaks of the confidence in our state, we can understand everything that has been done over the years to consolidate the ecosystem of the electronics industry in our state,” said the Jalisco governor.

Source: Jabil to invest US$400 million in Jalisco – Electronics Manufacturing News

Enics Merges with GPV to Create a European Electronics Giant

Two strong European-based electronics manufacturing services providers, Enics and GPV are merging. The transaction values the combined business at more than 500M€. The merger will create Europe’s second largest EMS company with more than 7,500 employees and operations worldwide. The Danish industrial conglomerate Schouw & Co., listed on Nasdaq Copenhagen and owner of GPV, will hold 80 per cent of the merging entity, while the current owner of Enics, Ahlstrom Capital B.V., (a wholly owned subsidiary of the family-owned investment company Ahlström Capital) will hold 20 per cent. Additionally, as a result of the transaction, Ahlström Capital will receive approximately EUR 60 million in cash. The merger of Enics and GPV will create an international electronics group with more than 7,500 employees and a revenue close to one billion euros.

Source: Enics Merges with GPV to Create a European Electronics Giant

For EMS Providers, Success Lies in Managing Components Across the Board 

The primary challenges that electronics manufacturing service (EMS) providers faced in 2021 were many and included a myriad of component shortages, inflationary pricing, logistics challenges and COVID-19 restrictions and closures across multiple geographies. With average lead times for many electronic components extending rapidly from a standard 12-16 weeks to more than 40 weeks, EMS providers and their end customers have been challenged to stay ahead of the increasing trend and source all of the components needed to complete end product builds.

Source: For EMS Providers, Success Lies in Managing Components Across the Board | TTI, Inc.

US Electronics Reshoring Plan Risks Missing the Boat

Reviving the US semiconductor industry will require balanced investment in the entire electronics ecosystem, including assembly and test, as well as printed circuit boards (PCBs), according to industry executives. While U.S. legislators prepare to approve a $52 billion package of incentives to help shore up the domestic semiconductor industry, there are concerns that most of the financial support will go to very profitable chipmakers that don’t need assistance while the struggling PCB segment is overlooked.

Source: EETimes – US Electronics Reshoring Plan Risks Missing the Boat

The European EMS market 2021 

After publication of the annual reports of the big EMS/ODM companies in Europe, in4ma can finally announce the annual production value 2020 for the European EMS/ODM industry. The research now covers about 85% of all EMS/ODM companies in Europe. Other smaller companies take more time to publish their reports; those results have been modelled. This is done every year in the same way, and the remaining 15% are being updated, when they become available.

Source: The European EMS market 2021 · EMSNow

Celestica to buy PCI Limited for $306 million

Singapore-based PCI is a fully integrated design, engineering and manufacturing solutions provider with five manufacturing and design facilities across Asia.

Source: Celestica to buy PCI Limited for $306 million in cash; raises 2022 outlook (NYSE:CLS) | Seeking Alpha

U.S. EMS Shipments up 13.5% in December 

IPC announced today the December 2020 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.10.Total North American EMS shipments in December 2020 were up 13.5 percent compared to the same month last year. Compared to the preceding month, December shipments rose 8.5 percent.

Source: U.S. EMS Shipments up 13.5% in December – EPS News

Reshoring is in Full Swing Among American Manufacturers 

Heavily impacted by the supply chain disruptions that happened during the early stages of the global pandemic—and that continue to effect specific business sectors months later—American manufacturers are rethinking their supply chains and coming up with new ways to shield them from future shocks.

Source: Survey Says: Reshoring is in Full Swing Among American Manufacturers | Source Today

Obsolescence Insurance, a New High-Margin Business for EMS Companies

Previous articles have discussed a segmentation of the electronics market called Long Life Cycle(LLC) Products. LLC products are those whose useful life is longer than five years. In a subsequent article, the current state of the electronics ecosystem, and the connection of the LLC market to the AI/IOT mega-trends were also discussed.

Source: Manufacturing shakes off closures; EOL as a revenue stream for EMS :: EPS News | MyNewsletterBuilder