Electronics Contract Manufacturing – Overview
Electronics contract manufacturing (ECM) services comprise a wide range of designing, assembling, producing, and testing capabilities for electronic components and printed circuit board assembly. From sourcing world-class electronic components at cost-effective prices to managing repair and refurbishment, ECM services help enterprises to handle the increasing complexities of manufacturing electronic products while reducing costs.In 2018, the global electronic contract manufacturing and design services market size was valued at USD 391.4 billion; it is expected to increase at a CAGR of 7.9% from 2019 to 2025.
What are the major components of ECM
Surface Mount Assembly
Surface Mount Assembly (BGA)
Manual & Automated Thru-Hole Assembly
Cable & Harness Assembly
Conformal Coating
Potting and Encapsulation
Contract Electronics Manufacturing Services Quality Systems
Design For Manufacturing (DFM)
Order Fulfilment
Aftermarket ServicesÂ
Why you should opt for ECM services
With electronic manufacturers on the look-out for innovative ways to scale their operations amid budgetary constraints, contract services are a natural fit to ensure a more productive business environment. Some of their unique advantages are:Â
A one-stop-shop for all PCB manufacturing needs – from l circuit board design to product assemblyÂ
Leaner and more agile manufacturing capabilities for increased operational efficiencyÂ
Faster production cycles to align high-demand products to tight deadlinesÂ
Smoother supply chain management by reducing ownership of delivery and delinking complex internal processesÂ
Improved overall product quality with adherence to the highest testing standards and quality control
More significant profit margins powered by the ability to scale production at lower costs
A shorter route to eco-friendly and energy-efficient electronics
Easier to troubleshoot issues to avoid costly warranty replacements
Questions to ask your ECM partner
Can you support heavy capital investments with adequate funds for any additional requirements? | Do you have relevant certifications required to build the electronic assembly? | Do you have a reliable ERP system to manage large sets of data? | Can you manage the production of IoT and wireless components? |
Current challenges of Electronics Contract Manufacturing
Shortened product lifecycles:
With unpredictable customer behavior changing market trends, contract manufacturers in usa must be in a position to introduce new products with quality assurance. Unless their New Product Introduction (NPI) processes are effective, it would be challenging to meet product goals.
Reduced operating margins:
With today’s milestone technology advancements, commoditization has lowered the cost of innovation. Along with the worldwide competition, the race is on for ECM vendors to use product differentiation to work with higher margins.
Low on energy – high on green:
Considering the recent demand for low energy consumption practices, it has become increasingly relevant (and in some cases – critical) for contract manufacturing PCB aasembly to adopt sustainable strategies. Whether adhering to carbon cap for compliance or attracting eco-conscious customers, the responsibility to conserve energy has never been more important.Â
The era of smart devices:
Smart products that come equipped with the latest integration capabilities continue to rule the roost as top consumer goods. With the global IoT device market expected to reach around 158,140 million USD in 2024, it can either unlock your potential or leave you behind the competition.Â
Complex supply chain dynamics:
In today’s global economy, it’s necessary for internal and external resources to stay abreast of different international regulatory standards. Otherwise, it may lead to many compliance and traceability issues that turn into major operational barriers.
 Latest trends in Electronics Contract Manufacturing
A call for going green | In a bit to comply with environmental compliance laws, the call for going green is becoming inclusive of the entire product lifecycle – production and assembly to disposal. Taking greener decisions has also taken precedence because of the growing importance of sustainable CSR practices. |
Focus on the medical sector | The healthcare and life sciences industry has been at the forefront of process innovation. With the digital health market reported to grow to over $90 billion by 2025, contract manufacturing PCB aasembly are looking to offer product design, logistics, and repair, as well. |
Flexible PCB design | The need for product miniaturization and intelligent terminal electronics has turned flexible PCB manufacturing designs into lightweight and high-density alternatives to traditional ones. Based on a substrate material, they come with inbuilt flexibility that improves overall performance while meeting quick demands. |
AI and Automation | On one side, AI-led robotics are reinventing research and development efforts in creating future-proofed products. On the other, process automation is augmenting production and assembly capabilities. Planning the factory of the future is today’s priority. |
What V-J offers:
Procurement and Material Management V-J offers expert guidance, from start to finish, as a single sourcing partner to eliminate risks of material obsolescence or unpredictable costs.  |
PCB Manufacturing V-J provides more scheduling flexibility during the PCB manufacturing process while reducing inventory liability. |
Box Build & System Integration V-J offers end-to-end Box Build services for rapid test development cycles, customizable delivery models and quicker time-to-market. |
Inspection and Testing V-J incorporates advanced modeling software for error-free assemblies and offers custom-designed tests on individual and fully assembled systems. |
Why V-J is the ECM partner of choice:
A skilled pool of consulting and engineering experts with domain-rich knowledgeÂ
Rapid production methodologies to ensure blazing fast deliveryÂ
Flexible to evolving market landscapes and changing customer demandsÂ
24/7 support for any of the EMS services
Conclusion:
Many Contract Manufacturers in USA future-proofed companies outsource their product lines to Electronic Contract Manufacturers for a variety of reasons such as introducing new products faster, enjoying higher margins, eliminating supply chain complexities and freeing internal res. However, they are also relying on ECMs so that they can sharpen their focus on growth strategies instead of worrying about cumbersome production, assembly or testing processes. Whether low-volume or high-volume production requirements, V-J can be your one-stop-shop manufacturing facility.