EMS Industry Forum - Serving Your Best Interests
by
Jan 27, 2003
The EMS Industry Forum will promote market growth and stability by providing forums for discussions of common issues and concerns. This will enable EMS companies to identify problems, develop solutions, and implement programs and services that serve their best interests.Objectives of the Forum1. To establish a credible and knowledgeable voice for the industry2. To develop and maintain accurate market information3. To develop and pursue a responsive platform of issues and concernsA Mature, Central VoiceThe Electronics Manufacturing Services Industry (EMSI) has grown exponentially in the last 10 years. At the same time, however, the industry has been hindered by conflicting market forces and no central representation. The result is analogous to an adolescent who has grown to basketball height, but without refined game skills. While you're winning, lack of these game skills might go unnoticed. But, losing subjects a player's skills to new scrutiny. When growth was double digits, many of the faults of EMS companies were masked. Then 2001 happened, and these faults became painfully obvious. The prescription for the tall adolescent is coaching and maturity. The EMSI needs a central voice, accurate information, collaboration, and a platform to come to a consensus on issues and concerns.Coordination for the Good of the IndustryThe Electronic Components, Assemblies & Materials Association (ECA) will host a meeting of EMSI senior managers to discuss their roles and responsibilities in the new manufacturing/distribution process. It will be the first step in establishing an organization that serves the needs of the EMS industry. Here are some of the things industry analysts are saying about EMSOver capacity, outsourcing and over supply - Supply chain players never manage to set a trend line for demand. EMS is still an adolescent - "a lot of attitude, but hasn't shown anything." The Asian market is expanding.Out of favor with Wall Street - EMS has been discredited.Supply chain is headed the right way, but still not in balance - EMS needs supply chain velocity. Excess inventory has eroded EMS' value. OEMs are making EMS take some risks on variance and inventory on commodity items.Industry is managing a deep recession and a major change in the supply chain concurrently - EMS has a good value proposition, but a poorly conceived and executed growth strategy.Global supply chain management is tougher than expected - EMS, suppliers and OEMs must be willing to adjust.Owning the supply chain is not the same as managing the supply chain - Vertical integration by EMS through purchasing of companies within the supply chain has not been an effective strategy.What needs to be doneThe EMS Industry needs to develop its own approach to the issues and establish a mechanism to deliver solutions. The EMSI Forum is the first step in this direction…EMS Industry ForumWyndham San JoseSan Jose, CAFebruary 20, 2003EMSI companies interested in attending the forum can click on the EMSI Forum Registration to the left or contact ECA at 703-907-7070 for more information and to reserve their space.
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