First-tier EMS, ODM consolidation: Why mergers and acquisitions are not happening

By Mark Zetter

Contract electronics consolidation lacking among top-tier EMS manufacturing and electronics ODM firms, primarily because (most) OEM customers can easily pack up their outsourcing programs and migrate to alternate, competing EMS and ODM providers.

Any first-tier EMS or ODM acquirer would not automatically be guaranteed to achieve additional scale against an increased CapEx burden despite relative amortization exposure. Read more about OEM customer (lack of) stickiness internal EMS and ODM suppliers here.

Ways OEMs can manage EMS mis-management of materials work-in-progress (WIP)
M&A best practices in EMS and ODM industry
Middle-market buyouts of non-traditional EMS manufacturers
Private equity risk in EMS acquisitions

Information on selecting EMS manufacturers can be found here. Best practices for OEMs when requesting EMS manufacturing quotes and managing your quote phase before selecting your EMS manufacturing partner can be found here.

For information about EMS sourcing support please look at our contract manufacturing consulting page.

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