IPC. Report first dip in EMS industry sales since 1985

Citation

(2002), "IPC. Report first dip in EMS industry sales since 1985", Soldering & Surface Mount Technology, Vol. 14 No. 3. https://doi.org/10.1108/ssmt.2002.21914cab.003

IPC. Report first dip in EMS industry sales since 1985

Keywords: IPC

IPC has announced the release of its 2001 Analysis of the North American Market for Electronics Manufacturing Services (EMS) report.

The IPC-TMRC-01-M document, which was commissioned by the Technology Market Research Council (TMRC), details industry trends for the EMS industry in 2001. All information was produced from data provided to IPC from 37 North American EMS providers with approximate 2001 net sales of $8.7 billion, representing nearly 30per cent of the total estimated North American independent electronics assembly industry in 2001.

The document reports that because of the overall slow down of the North American economy and lagging sales in the communications market, the EMS industry, with an estimated $35.8 billion in sales in 2001, experienced a negative growth rate last year for the first time since 1985. Despite the $3.6 billion downturn from 2000 sales of $39.4 billion, the IPC-TMRC-01-M continues to positively project the EMS industry's future, forecasting $60.1 billion in sales by the year 2005.

The EMS industry continues to predominately cater to the computer (41.1percent) and communications (32.2percent) markets. However, the instrumentation sector (consisting of test and measurement equipment, medical instruments, and medical testers, analytical, nuclear, lasers, scientific instruments and implant devices) experienced a 3.9percent increase, reporting a 9.9percent share of the markets served by the EMS industry in 2001.

The report also indicated that the majority of the EMS industry (56.8percent) continues to invest in automated assembly (both through hole and surface mount), while 18.4percent invest in testing equipment and 7.8percent in MIS hardware/software.

The IPC-TMRC-01-M projects that the total available market for EMS companies (excluding system and box build activities) will total $115.5 billion and will consist of assembly services ($43.9 billion), semiconductors ($41.7 billion), passive components ($15.1 billion), design, test, prototype, rework and repair services ($7.5 billion) and printed circuit board (PCB) consumption ($7.3 billion). The report also estimates that the EMS market will continue to expand, primarily through acquisitions, and will hold 30per cent of the total available North American Electronics Assembly market.

This 80-page document is available in hard copy and electronic formats and can be purchased for $375 by IPC members and $525 by nonmembers through the IPC Online Store at www.ipc.org/onlinestore or by contacting IPC Customer Service at orderipc@ipc.org or 847- 790-5362.