MMI Articles

For contract manufacturing news and EMS industry trends, MMI is the place to go. But don't take our word for it. Here are some important stories we've covered in previous issues:

Contents of the current issue of MMI.

December 2011. MMI tabulates Q3 and nine-month results for the top 20 contract manufacturers (EMS providers and ODMs). Sales for the first nine months still increased at a double-digit rate. MMI also shows that nine-month sales growth for a group of nine mid-tier and smaller EMS providers based in North America did not kept up with the rate at which revenue increased for the 11 largest EMS providers. In addition, MMI presented Q3 and nine-month results for seven publicly listed EMS providers based in Asia.

November 2011. A ho-hum year is projected for the six largest US-traded EMS providers as a whole. Growth of the US-traded group's sales slowed in Q3. Nine-month results for the top 11 EMS providers offer two interpretations. In the news, OnCore enters China as Creation bolsters its design services. Two alliances are formed in the EMS industry. An update on the flooding in Thailand also appears.

October 2011. Mother nature strikes again as Thailand suffers the worst flooding in more than 50 years. The article includes immediate impacts to the EMS industry. A new metric shows how the transfer of inventory from OEM ledgers to EMS balance sheets has come at a huge cost to the profitability of the EMS industry. Q3 results are summarized for three of the largest US-traded EMS providers. In the news, MMI reports three organic expansions in the US. The editor's Last Word column traces the troubles of Elcoteq.

September 2011. Second quarter results show that sales growth of a group of large EMS providers continued to surpass by far the revenue growth of a comparable group of ODMs. In the news, Hon Hai is expanding into the solar space. MMI also covers three acquisitions announced by North America-based EMS providers. Other topics include German EMS providers investing in North America and Elcoteq units filing for bankruptcy. In his Last Word column, the editor shows how growth is being paired with higher margins.

August 2011. Estimates point to a Q3 slowdown for the US-traded EMS sector. But combined Q2 results for the largest US-traded EMS providers beat earlier estimates, though Q2 sales were down for a North American group of mid-tier and smaller providers. MMI also presented Q2 results for eight publicly held providers based in Asia. Their aggregate Q2 sales also grew. In the news, Jabil agreed to acquire an aftermarket services provider, while OnCore Manufacturing acquired a California-based EMS provider.

July 2011. In recent months, three Europe-based EMS providers have sought protection from creditors under European insolvency laws. MMI finds first-half M&A transactions down by 25%. New Venture Research releases new forecasts for the EMS and ODM sectors. Quarterly results are briefly summarized for four of the largest U.S.-traded EMS providers. In the news, Cisco has agreed to sell its set-top facility in Mexico to a Foxconn subsidiary. Videoton makes a mechanical deal. The editor's Last Word column shows how the EMS label is being stretched.

June 2011. North America is heating up for solar business, as EMS providers benefit from a Canadian FIT program. A group of the largest EMS providers generated Q1 growth far above what an ODM group produced. Minimal growth is predicted for the level of cell-phone outsourcing. Flextronics released a report on the company's CSER program for suppliers. Among other news, the French operations of TES were sold off.

May 2011. The Top 25 contract manufacturers push growth above 30% for 2010. Includes a list of the Top 25 CMs ranked by 2010 sales. Also, combined Q1 sales for the six largest U.S.-traded providers come in below MMI's estimate. Still, first-half sales for this group are projected to grow by double digits. Q1 sales are also tabulated for 11 of the largest EMS providers. In addition, MMI presents Q1 results for eight mid-tier and smaller EMS providers based in North America. In the news, a fatal blast occurred at Hon Hai's Chengdu, China, facility. Flextronics is pulling out of the PC ODM space.

April 2011. Japan's disaster raises questions about the second half of 2010. Some quarterly results are briefly summarized. Another article shows that nontraditional areas again combined for the leading share in a market analysis based on 42 Top 50 EMS providers. Market segment percentages are listed for all 42 providers. In the news, Celestica plans to enter the semiconductor equipment space; Ducommun intends to acquire LaBarge; and Foxconn confirms interest in Brazil. The editor's Last Word column finds a supply chain achilles' heel.

March 2011. MMI ranks the Top 50 EMS providers worldwide according to 2010 sales. Tabulated data also include 2010 growth, 2009 rank, number of people, number of plants, facility square footage, percent space in low-cost regions, number of SMT lines, number of customers and notable customers. MMI Top 50 providers generated an estimated $185.7 billion in combined sales for 2010. Also in this issue, a new tax could help spur medical device outsourcing. Plus Elcoteq buys an AMS provider, and SCI unveils a new ODM effort.

February 2011. MMI presents its annual summary of M&A transactions in the EMS industry. A total of 41 deals are listed for 2010, up 105% from 2009. Transactions are classified and analyzed. This article also lists 20 alliances and equity partnerships. Data in another article show that 2010 was a banner year for the group of large U.S.-traded providers. Q1 estimates for these providers indicate that for them 2011 is starting out where 2010 left off. In the news, Jabil takes back divested operations, and Benchmark acquires assets in Malaysia.

January 2011. MMI's annual outlook identifies nine EMS industry trends worth watching in 2011. This year will not be a repeat of 2010, according to both EMS/ODM and semiconductor forecasts. In another feature article, a new forecast projects single-digit growth for 2011. Also, MMI presents some quarterly results in brief. In the news, a defense contractor and an EMS provider join forces.

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