Relocating supply chains reveal capacity shortages

By Staff

Shifting manufacturing supply chains reveal inadequate coverage and capacity shortages pushing many South East Asian nations to align infrastructure investment and capability with demand. Expected infrastructure spend per GDP below for Indonesia, Malaysia, Pakistan, Philippines, Thailand, India, Vietnam.

Based on the above information from World Economic Forum, World Bank and UBS investment bank, we suggest OEM readers also take a look at the information below.

Read about a geographic short list in Asia for manufacturing supply chain relocation here. Information on should cost manufacturing templates for SMT, PCB assembly, test, and electro-mechanical assembly operations with EMS manufacturers and ODM suppliers can be found here here.

Tariff-driven OEM manufacturing sourcing strategies for outsource EMS manufacturing can be found here and, South East Asia manufacturing resources can be obtained here.

Additionally, four (4) types of contract manufacturing service agreements for EMS manufacturing can be found here.

OEM outsourcing manufacturing capacity planning

Electronics OEM category managers and sourcing managers focused on outsourcing local, regional and, global manufacturing supply chains can access this extensive resource page here as you gather information on selecting EMS and ODM suppliers and formulate outsource manufacturing plans of action and negotiate your contract manufacturing service agreements.

As costs for capital expenditures for manufacturing equipment have fallen, combined with property and manufacturing labor costs rising in many geographies, as a percentage of MCOGs, unit labor costs and land in many ASEAN nations is more appealing than relative resources in China.

Add to this tax benefits and relatively inexpensive plants and facilities offered by local governments, many OEMs (and EMS and ODM providers) are seeing the economic benefits of cost reductions and margin improvements from relocating manufacturing supply chains into South East Asia.

Depending on the cost and P&L of your OEM product specifications, programs, and your company, your COGS are critical in making or breaking the quarter and competing for growing market share. We hope you find this information helpful.

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