Editor's Choice


What differentiates EMS companies

EMP 2020 Electronics Manufacturing & Production Handbook Editor's Choice Manufacturing / Production Technology, Hardware & Services

Since the start of the manufacturing industry the ‘buy or make’ decision has been something that companies have been weighing up. During the 1990s outsourcing became a viable option for companies.


Christine Brindle.

Some companies outsource their non-core competencies to stay competitive while others aim to reduce costs, minimise risk and to gain access to advanced technologies that they would otherwise not have access to.

Companies that wish to outsource to electronics manufacturing firms usually go through a rigorous process to select the right manufacturer for them. The process starts internally by understanding what their competencies are, what their objectives are, and in the end what they would want to achieve by outsourcing.

After the outsourcing strategy is in place the search for the manufacturer begins. For an electronics manufacturing service (EMS) provider, competencies, skills and expertise are some of the critical components when attracting new clients and managing relationships with existing clients. These competencies, skills and expertise are also what differentiates EMS providers from each other and what determines their competitiveness.

One of the major factors that differentiate electronics manufacturers from each other is the quality of the product that they deliver to the client and the time frame that they deliver the product within. The quality includes the whole process that was followed from the start of the process to the final delivery of the product. If an electronics manufacturer can deliver a high-quality product, within a given time, while taking the client’s needs into consideration, it gives that electronics manufacturing service a good advantage and it differentiates the company from others.

Another competency that differentiates electronics manufacturing services is the technology and equipment that they have available in their facility. This attracts clients and gives the company a competitive advantage.

Services offered also differentiate electronics manufacturing services from each other. A full turnkey solution always gives an advantage as everything is done in one facility and eases the minds of the clients as the risk is lower. A full turnkey solution usually includes sourcing of materials, surface-mount technology, through-hole production, conformal coating, testing, quality assurance and dedicated project management.

Building long-term relationships with clients and catering to their specific needs is also an important factor when looking at what differentiates EMSs from each other. By putting the client first, learning about their objectives, offering a tailor-made solution according to those objectives and including them in all aspects of the manufacturing process, EMS companies can much more easily meet and exceed the needs of their clients, which in turn solidifies the business relationship.

For the future, new avenues should also be explored to stay differentiated. Going ‘green’ is one of them. Increased interest in the environment and social sustainability is putting pressure on companies. Prospective clients are starting to look at this as a factor when choosing an EMS, thus finding innovative ways to incorporate elements of sustainability would be beneficial to the electronics manufacturer’s competitive advantage.

The electronics manufacturing industry is rapidly changing every day, and to remain ahead and stay competitive is challenging. Having your strategy in place, keeping up with the newest technologies and knowing what client requirements are, are some of the many factors to keep in mind when you want your EMS to stay competitive.


Credit(s)



Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

The power of Matter
Editor's Choice Telecoms, Datacoms, Wireless, IoT
Matter offers a reliable, secure, seamless way to interconnect devices from different manufacturers, allowing a new level of interoperability to be enjoyed.

Read more...
Transmitting power to remote places
Altron Arrow Editor's Choice Power Electronics / Power Management
The new single-pair power over Ethernet (SPoE) allows for power and data to be transmitted over longer distances of up to 1000 metres.

Read more...
AI is revolutionising electronics manufacturing
Editor's Choice News
Artificial intelligence is transforming the electronics manufacturing industry by providing new ways to optimise production processes, reduce costs, and improve product quality.

Read more...
Designing and manufacturing robust enclosures for extreme environments
Editor's Choice Manufacturing / Production Technology, Hardware & Services
The lifecycle of robust edge devices starts with design, and all aspects, including electronic components, packaging, shipping, installation, and servicing needs to be considered at the design stage to ensure that an edge device can operate in the environment it is intended for.

Read more...
Reducing solder paste spatter during reflow
Techmet Editor's Choice Manufacturing / Production Technology, Hardware & Services
Splash is a problem that solder paste will inevitably encounter during the welding process, and distinguishing between spatter and solder ball is the first step in solving the problem.

Read more...
Products of the year 2023
Editor's Choice News
A summary of products and technologies from 2023 that are currently shaping the electronic engineering industry.

Read more...
The dream of Edge AI
Altron Arrow Editor's Choice AI & ML
AI technology carries a great promise – the idea that machines can make decisions based on the world around them, processing information like a human might. But the promise of AI is currently only being fulfilled by big machines.

Read more...
Save space and improve efficiency with a 4-switch buck-boost controller
Altron Arrow Editor's Choice Telecoms, Datacoms, Wireless, IoT
A new generation of 4-switch buck-boost controllers enables power system design with very high efficiency and high power density by using inductor DC resistance (DCR) current-sensing techniques.

Read more...
Matter 1.2 adds new capabilities
NuVision Electronics Editor's Choice Telecoms, Datacoms, Wireless, IoT
This update introduces new device types and expands the reach of Matter into new markets, while also bringing other improvements that enhance interoperability and user experience.

Read more...
Personality Profile: Paul Eveleigh
Hiconnex Editor's Choice
With a strong and experienced team behind him, he can put into practice what he has learned during his career and ultimately grow the company towards its strategic objectives.

Read more...