A good year for EMS market

The Electronic Manufacturing Services market had a pretty good year in 2010. Median sales were up a fair amount, and many expenses stayed fairly flat. An IPC quality benchmarking survey also showed that quality levels remain high.

Median sales grew 23 percent for the 29 North American companies that participated in the IPC Study of Quality Benchmarks for the Electronic Manufacturing Services (EMS) for 2010. In contrast, an iSuppli global study saw a 33 percent revenue increase last year and included original design manufacturers.

IPC survey respondents spent 0.9 percent of sales on research and development, largely matching 2009 levels. Median expenses on capital equipment as a percentage of net sales were slightly up to 1.3 percent compared to 1.0 percent in 2009.

Customers seem to like the products they buy. The median lot rejection rate for boards and systems was 1 percent. Another metric for customer satisfaction, the median percent of on-time deliveries, was 90.5 percent. Component suppliers to the participating EMS companies delivered on time only 86.0 percent of the time, while PCB suppliers’ on-time deliveries were at 92.4 percent.

There are tons of statistics in the report, giving EMS companies a solid benchmark to gauge their performance. The report is available in the IPC bookstore.

 

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