Nevada City, California – New Venture Research announces that its in-depth study of the contract manufacturing services market resulted in a successful year in 2024.
NVR’s benchmarking shows the results for the 57 public contract manufacturing companies that reported financial results; ODM market coverage includes 16 public firms while the overall EMS coverage was based on 41 EMS companies. Historically, Asian firms report better financial results for ODM suppliers when compared to CM firms.
Contract Manufacturing Profitability
Table 1 summarizes the key financial performance metrics worldwide for fifty-seven large public CM suppliers for 2019–2024.
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Table 1 – Summary of Financial Performance Metrics for Large Public CM Companies 2019–2024 |
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2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
CAGR |
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Large EMS Firms |
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Revenue ($M) |
343,229 |
334,732 |
358,449 |
419,830 |
453,357 |
429,041 |
5.9% |
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Gross Margin |
6.3% |
5.1% |
5.8% |
7.2% |
7.3% |
7.5% |
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Return on Sales |
1.8% |
2.0% |
2.2% |
2.5% |
2.4% |
2.5% |
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Return on Assets |
2.7% |
3.2% |
3.8% |
4.0% |
3.9% |
4.0% |
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Return on Equity |
8.5% |
8.4% |
8.7% |
10.8% |
10.8% |
10.5% |
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Large ODM Firms |
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Revenue ($M) |
63,622 |
63,519 |
64,189 |
75,317 |
73,821 |
65,222 |
2.7% |
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Gross Margin |
7.4% |
8.2% |
8.6% |
8.9% |
9.6% |
11.0% |
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Return on Sales |
3.7% |
3.7% |
5.4% |
7.5% |
6.1% |
7.1% |
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Return on Assets |
2.9% |
3.4% |
4.9% |
6.1% |
5.0% |
5.5% |
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Return on Equity |
9.3% |
9.1% |
13.7% |
18.5% |
14.1% |
14.2% |
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Total CM |
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Revenue ($M) |
398,251 |
422,638 |
495,147 |
527,177 |
483,367 |
519,379 |
5.5% |
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Gross Margin |
5.6% |
6.2% |
7.5% |
7.6% |
8.0% |
8.1% |
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Return on Sales |
2.3% |
2.7% |
3.3% |
2.9% |
3.1% |
3.3% |
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Return on Assets |
3.3% |
4.1% |
4.5% |
4.1% |
4.3% |
4.5% |
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Return on Equity |
8.6% |
9.8% |
12.6% |
11.6% |
11.4% |
11.8% |
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Source: New Venture Research
Table 2 summarizes the best and worst CM companies measured by revenue growth from 2019 to 2024. The five-year CAGRs of leading CMs were very strong again this year, with a few worth mentioning. Dixon Technologies, which makes mobile phones, ranked the highest in terms of performance, along with its competitors, including GigaByte and Luxshare. Luxshare’s growth was the result of enormous demand for digital TVs and monitors. DBG Technology has a large business in manufacturing mobile phones, which has driven its revenue growth into the top tier. The five worst-performing CMs in 2004 had a bad year in terms of revenue growth.
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Table 2 – Best and Worst CM Companies by Revenue Growth Rate, 2019 and 2024 |
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Revenue ($M) |
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2019 |
2024 |
CAGR |
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Ten Fastest Growing Companies |
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Dixon Technologies (India) |
427 |
2,115 |
37.7% |
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GigaByte |
1,999 |
8,258 |
32.8% |
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Luxshare Precision |
9,050 |
37,355 |
32.8% |
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GPV Group |
412 |
1,295 |
25.7% |
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3CEMS |
580 |
1,605 |
22.6% |
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DBG Technology |
449 |
956 |
16.3% |
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HANZA AB |
219 |
459 |
16.0% |
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Connect Group |
182 |
370 |
15.2% |
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Cicor Group |
271 |
546 |
15.1% |
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NOTE |
186 |
369 |
14.7% |
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Total |
13,774 |
53,328 |
31.1% |
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Five Worst Growing Companies |
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Wong’s International |
483 |
341 |
-6.7% |
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WKK Technology |
671 |
443 |
-8.0% |
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UMC Electronics |
1,321 |
867 |
-8.1% |
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EliteGroup Computer Systems |
915 |
545 |
-9.9% |
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ATA IMS Berhad |
702 |
61 |
-38.7% |
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Total |
4,092 |
2,257 |
-11.2% |
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Net Income
Table 3 summarizes the best and worst CM companies by net income percentage for 2024. Net income increased for both EMS and ODM suppliers from the previous year. Four companies achieved net income in the double digits, one more than did last year. MiTAC has ranked in first place for three years in a row and has consistently scored high in this category in the past. Shenzhen Zowee and ATA IMS performed badly in this category, going into the negative double digits. All suppliers that performed badly did so due to supply chain challenges.
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Table 3 – Best and Worst CM Companies by Net Income Percentage, 2024 |
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Company |
Net Income |
Company |
Net Income |
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Ten Best Companies |
Five Worst Companies |
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Flex |
19.4% |
WKK Technology |
-3.6% |
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Celestica |
13.8% |
SigmaTron |
-5.0% |
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Jabil |
11.3% |
IMI |
-8.2% |
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HANZA AB |
10.6% |
ATA IMS Berhad |
-26.3% |
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SVI Public Co. |
9.6% |
Shenzhen Zowee |
-26.6% |
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Benchmark |
9.4% |
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Luxshare Precision |
8.9% |
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Fabrinet |
8.4% |
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Wistron |
8.3% |
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Kitron |
7.5% |
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