Electronics take center stage in our homes and offices but people don’t often think about the companiesthat test, manufacture, distribute and provide repair services for them. This large, mysterious sector,known as the electronic manufacturing services (EMS) industry, is experiencing steady growth globally.
Did you know:
- EMS is the largest segment in the manufacturing industry, with an estimated revenue of $1.75 trillion USD. Source
- The EMS industry is estimated to grow to $639 billion in 2018 with a compound annual growth rate of more than 7 percent. Source
- In 2014, EMS providers contributed to 73.6 percent of top 25 sales in the category, up from 70.2 percent in 2013. Source
- Across all segments in the market, consumer electronics is experiencing the fastest growth, with an estimated compound annual growth rate of more than 11 percent in 2012. Source
New Kinpo Group (NKG), which was ranked as the no. 11 top contract EMS manufacturer for 2014*,predicts additional EMS growth will be fueled by the Southeast Asia market. Having been based in Taiwan for more than 40 years and in Southeast Asia for 20, we continue to invest throughout the region in order to offer customers greater flexibility, lower costs, faster delivery times and world-class product quality. Most recently, we opened a new factory in the Philippines. This highly-automated,vertically-integrated factory is dedicated to consumer product manufacturing.
Although many have long-realized the benefits of manufacturing in China—where NKG also has a presence—the EMS industry globally is just realizing the infinite manufacturing possibilities that exist in Southeast Asia. Thanks to our investment in the region, we saw these opportunities early on. As a result,the company’s international customers are able to capitalize on our robust infrastructure to better serve local customers. With our extensive knowledge of local markets, we’re able to vertically integrate supply chains and keep our design team close, drastically improving delivery time for our customers.
We’ve developed manufacturing facilities in Brazil and Mexico to extend our electronics excellence to even more customers. By emulating our success in Taiwan, lead time and overall cost is significantly decreased. Also, products produced locally face lower tariffs, which creates savings for both the company and the consumer.
For more on NKG’s global expansion, please visit our newsroom. Data about the growth of the EMS industry and NKG’s role in the space can be found at Manufacturing Market Insider.
*NKG is ranked as the no. 3 top contract EMS manufacturer when revenue is combined with Compal Electronics*