The market for electronic manufacturing services has been growing for a long time. In addition to the production side, EMS companies often help OEMs with logistics management, purchasing, and managing the whole supply chain and the production side. The industry is expected to grow on average at 7.5% per year from 2018 to 2024.
Electronics manufacturing “jargon” can be hard to understand, so here is a list of acronyms used often in the field.
Tiers in the electronic manufacturing industry
The electronic manufacturing industry is usually broken down into tiers, primarily based on their size. These tiers are based mainly on how much money they make. If both the OEM and EMS providers find ” best ” partners and work well together, that’s the most important thing.
The truth is that electronics manufacturing companies from Tier 3 or 4 can have the same experience and skills as those from Tier 1 or 2. There are different OEMs, and they are also broken down into tiers. But that doesn’t mean that both will provide the same quality customer service. Threes and fours are just small businesses. They also tend to be more collaborative and committed to small businesses. Getting a good fit is very important, and only then can the two companies work together and get an EMS provider to give them a lot of money and time.
Applications for making electronics
More and more OEMs are looking for electronic manufacturing services from different industries to the medical field. The days when OEMs worked with a contractor only for operational and assembly-only reasons are over. Today, it is part of a well-thought-out business plan.
Indeed, manufacturers have found that when they work together, they can get many benefits that improve their customer service and the quality of their products. Thus, the total costs are cut, and the OEMs get a value they couldn’t make on their own.
People should look at a few critical applications and their specifics to see what they can do.
People in the healthcare industry look for manufacturers with the proper certifications, tight process control, and high-quality standards.
Industrial automation devices: a group of devices mainly used to control and automate different processes in the workplace. EMS providers that support industrial electronics must be able to handle high-mix, low-volume production and keep a wide range of methods for OEMs (printed circuit board assembly, conformal coating, final assembly, electro-mechanical integration, testing).
There are many different types of electronic manufacturing
A high-mix, low-volume production environment refers to a setting where the size of the production batch, the production processes used, and the use of the finished product all vary. It’s easy for an EMS company that makes high-mix, low-volume (HMLV) electronics to change things up quickly, so they can change up their assembly lines in minutes. HMV providers are much more flexible and can respond promptly to changes in the needs of their customers.
It’s essential for high-mix, low-volume electronics manufacturing companies to have precise controls and experienced indirect resources because they face many problems that could lead to mistakes. That’s why automation, lean manufacturing, and robust software control are essential for high-mix, low-volume electronics manufacturing projects. This is why a well-organized, smart factory is essential.