Onshoring of Electronics Manufacturing: $2.5 Billion in 3 Years
Aug 16, 2012
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Electronics manufacturing operations with a value of at least $2.5 billion are expected to come to North America in the next three years, according to a new study from IPC - Association Connecting Electronics Industries.
The study indicates that on-shoring - actions by North American manufacturers to return overseas operations to North America or to build new operations in the region - has been occurring and will continue.
Survey results showed that original equipment manufacturers (OEMs) were largely responsible for operations returned to North America from overseas since 2009, accounting for more than 90% of the value and number of jobs brought back. The electronics manufacturing services (EMS) industry was a big contributor.
The report said a quarter of operations that returned to North American since 2009 came from China, with other countries making up the other 75%.
The EMS industry accounts for the largest share of overseas operations that participating companies plan to bring back to North America in the next three years. New operations, however, represent a much larger share of future North American production. These planned new operations were reported primarily by OEMs.
The report said the primary reason for bringing operations back to North America from overseas was quality control.
A driving force for companies establishing new operations in North America is to be closer to customers.
The study, On-Shoring in the Electronics Industry: Trends and Outlook for North America, is based on a May 2012 survey of 229 companies with global revenues totaling more than $935.3 billion.
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