What Will Drive Growth in Contract Manufacturing?

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Dave Sasson
User Rank
Supply Network Guru
Re: Technology Growth Driver
Dave Sasson   10/26/2010 5:18:07 PM

I would say that definitely the traditional business model will continue to be the anchor for EMS companies for the short term.  But I would foresee new segments, such as cleantech/renewable energy and smart grid technologies as additional sources of revenue with demand increasing significantly over the next few years.  I believe Jabil is one such company that has started to embrace these new segments, but how it is impacting its profitability is yet to be determined.  It would be interesting to see which companies start branching out to new markets or if many will just hunker down and focus on what they do now and look for ways to improve and provide more value-added services on their traditional business.

Bolaji Ojo
User Rank
Technology Growth Driver
Bolaji Ojo   10/26/2010 10:19:18 AM

I am curious about potential growth market segments for contract manufacturers. Which product segments do you see contributing to the increase in EMS sales? Many of the top contract manufacturers are focused on the consumer electronics space serving companies like Apple, Dell and HP. Will these be the areas to watch?

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