Tools for EMS manufacturing quote pricing analysis - Optimize total landed cost savings for your contract electronics outsourcing programs

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Tools for EMS manufacturing quote pricing analysis - Optimize total landed cost savings for your contract electronics outsourcing programs

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Contract electronics attracts limited partnership investment, middle market management buyouts for high-mix, non-traditional EMS

By VentureOutsource.com Staff

Rarely today do electronics OEM decision makers leave a current EMS partner because a competing electronics solutions provider lured them away. One saving grace for EMS providers is, in general, EMS firms are notoriously bad marketers of communicating EMS differentiation and any business wins are theirs to lose.

It’s no surprise most EMS industry sales is driven by OEMs outsourcing more programs to existing EMS partners and has little to do with EMS sales efforts. We estimate the majority of EMS sales professionals close less than 15% of new customer opportunities.

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We estimate the majority of EMS sales professionals close less than 15% of ‘new” customer opportunities. OEMs remain with an EMS provider because there’s either nowhere else to go or, until pricing pressure becomes too much or EMS execution falters.

In an industry known for operations and supply chain inefficiencies size (vertical integration) can matter more and as the EMS industry becomes increasingly more competitive it’s becoming apparent the majority of EMS providers with $300 million in sales or less are looking for an exit.

EMS providers with dedicated electronic prototyping or an NPI offering have more choice about how they might exit. Options improve even more depending on industries served, facility location(s) and, technical capabilities per location.

Some trends we’ve noticed with EMS industry M&A recently include:

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