EMS manufacturing industry is a liquid market

By Staff

Contract electronics manufacturing (EMS) industry is like a liquid market. Numerous EMS providers will bid on a qualified lead, knowing that the OEM prospect is also entertaining quotes from competing EMS providers.

But unlike true liquid markets, the EMS sales cycle is not quick to transact.

Plus, there is constant impact to EMS provider pricing. EMS providers change pricing, depending who is the buyer.

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Add to this, OEMs are price-sensitive which makes EMS providers nervous about OEM customers (converted leads) pulling their OEM program out of one EMS provider and taking it to a competing EMS provider.

And because there is little differentiation among EMS providers competing for similar customers in similar markets, this EMS industry dynamic drives EMS sales people to focus more on being the OEM customer’s friend, than motivating EMS sales people to learn how to comprehend and solve the OEM’s business challenges.

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