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Based on information from research studies and consulting engagements several trends will develop over the next five years in the EMS and OEM business.
The record price of oil is forcing OEM companies to rethink their business model, especially where products are manufactured as well as the extent of their supply chain networks, predicts TFI. TFI also believes that carbon emissions will play a vital role in customer buying decisions. A product will be judged not only on its cost, but on carbon emissions it produces. One important contributor is the average 12,000-mile supply chain that many manufacturers rely on. Most OEM companies manufacture in China and distribute these products in North America and/ or Europe, reports mbtmag. In five years, TFI expects the global electronics manufacturing to be more evenly balanced than today. Regional manufacturing will replace the massive outsourcing strategy. Although still important, low-cost labour is not driving sourcing decisions as strongly as it did five years ago. OEM’s will pay attention to an array of factors, such as materials, labour and direct overhead, but also border security issues, infrastructure, currency fluctuations and labour force capabilities.
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