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 the last two years:

Contents of the current issue of MMI.

March 2008. MMI publishes its annual list of the 50 largest EMS providers worldwide. Top 50 companies are ranked based on 2007 sales. Other tabulated data includes 2007 growth, 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 combined sales of $141.3 billion in 2007. MMI also looks at preliminary 2007 sales results for eight large ODMs. Their aggregate growth last year was eye-popping. Another topic covered is India's supply base.

February 2008. MMI's annual summary of M&A deals in the EMS industry shows that the number transactions in 2007 was down for the second year in a row. Summary lists 42 transactions. But the number of consolidation deals increased. Article also lists 18 alliances and equity partnerships. Under news headlines, Sanmina-SCI will part with its PC business. Flextronics will acquire a mobile power unit. Elcoteq will sell its Russian plant to Flextronics. A new player emerges in Europe. And LEGO takes back Czech production.

January 2008. MMI's annual outlook for the year ahead presents ten trends to watch for in 2008. In world markets, mixed signals are coming from Russia as one provider plans to scale down or divest its Russian subsidiary while another plans to build a plant there and a third is reportedly exploring that possibility. In the news, France's ASTEEL will gain a presence in the U.S. and China through acquisition. NOTE adds a UK provider. An Islamic bank buys control of a U.S. provider. Sanmina-SCI acquires Powerwave assets.

December 2007. Vietnam is drawing more Taiwanese companies. Forecast averages show the same long-term growth rate for the EMS and ODM sectors. Jabil ranks as the number-three contract manufacturer of LCD TVs. Q&A with Sanmina-SCI's Joe Bronson. Among news stories, Microsoft confirms a shift of Xbox business. Beyonics will acquire a Seagate operation. CEI will acquire an electromechanical house. In the editor's column, he asks: Is restructuring finally coming to an end?

November 2007. Flextronics jump starts integration of Solectron. In world markets, Czech plant brings in foreign workers. Under the market data section, Q3 results are presented for the 12 largest EMS providers worldwide. Article includes tabular data plus group results and a brief discussion of each company's performance. U.S.-traded providers, as a group, are projected to hit double-digit growth for 2007. In the news, FIH plans to build another plant in S. China. Q3 results are tabulated for six smaller providers listed in the U.S.

October 2007. EMS-ODM turf wars are spreading. Is there enough labor in Central Europe? EMS growth is projected above the ODM rate. In the News section, Flextronics completes its acquisition of Solectron. Jabil and Nokia Siemens reach agreement for a transfer of operations to Jabil. Suntron is going private. The editor's Last Word column explores the EMS industry's quest for low-cost labor.

September 2007. First-half 2007 results are rolled up for 32 large outsourcing providers. Overall growth was nearly 20%. Includes 3 charts and 8 tables. In the news section, Flextronics has signed a letter of intent to acquire a notebook ODM. Nokia Siemens aims to sell operations to Jabil. Two consolidation deals in Europe are covered. NOTE gains capacity in China. A new approach emerges for pursuing medical business. The editor's Last Word column asks if the term EMS is being redefined.

August 2007. Cover story shows the rise of mega-vertical suppliers in the outsourcing space for mobile phones. In the world markets section, two of the largest EMS providers are endorsing Russia for plant investments. Next, a market data article presents new forecasts for the outsourcing business. Another article tabulates Q2 and six-month results for US-traded providers as well as providing nine-month estimates. In the news, Flextronics will make a medical deal. Creation acquires two U.S. providers. A new player appears in China. UK providers target defense and aerospace.

July 2007. MMI finds that first-half consolidation deals in the EMS industry were up 50%; article includes five charts on M&A. In the world markets section, a new labor law is passed in China. Under the market data banner, MMI presents some highlights from the Q2 results of seven publicly held EMS providers. In the news, Jurong will enter the cell-phone ODM business. Creation will acquire another U.S. provider. Kitron will expand in Lithuania. Benchmark buys a Quantum unit. And the Hon Hai Group is investing in more sites. The editor's column discusses the rule of 150.

June 2007. Flextronics' proposed acquisition of Solectron will put Flextronics over $30 billion, as industry consolidation makes a quantum jump. Five-page article takes a close look at this acquisition. In the news, U.S.-based providers join forces. Sanmina-SCI opts for a manufacturing facility in India. The editor gives his take on the Flextronics-Solectron deal.

May 2007. Top 25 outsourcing providers surpass $200 billion in sales. These providers are listed in order of 2006 sales. Analysis includes influence of Taiwan-based companies, EMS versus ODM growth and Top 25 grow rates over time. In another article, MMI tracks Q1 2007 results for 15 large providers worldwide and 10 ODMs. A third feature presents a first-half 2007 outlook for the seven largest U.S.-traded providers. The next article focuses on two top-six providers that have voted for Vietnam. In the news, FDA actions impact two providers. Jabil files its Form 10-K at last.

April 2007. The consumer and mobile segment takes the lead among 45 Top 50 EMS providers. Market segment percentages of sales are tabulated for Top 50 EMS providers. Charts show overall segment percentages. On the design side, platforms (reference designs) are seen as a necessity by some. Also, some small providers want a piece of the design-plus-manufacturing business. In the news, Solectron makes a medical deal. Canada's Adeptron plans to obtain its first U.S. facility through acquisition. Delta Group acquires a provider in Florida. PartnerTech adds a development firm. The editor's column looks at a shortfall of skilled labor in China and India.

March 2007. The results of MMI's annual Top 50 survey show who made this exclusive list of the world's largest EMS providers. Combined Top 50 sales rose 18.4%, which is above what is usually considered an average year for the EMS industry.The cutoff went above $200 million for the first time. Tabulated data for each provider include 2006 sales, sales growth, 2006 rank, 2005 rank, number of employees and plants, facility sq ft and % in low-cost regions, number of SMT lines, and customer data. In the News section, Finland's Incap make a move in India; Jabil announced charges stemming from its options review; and Celestica makes changes in its senior staff.

February 2007. MMI presents its annual Scorecard of M&A transactions in 2006. Summary lists 47 completed deals, down 15% from 2005 but still consistent with previous years. Special section also tabulates 16 alliances and equity partnerships. Five charts are included. In the News section, Solectron's CEO resigns. Also, Alcatel-Lucent has agreed to sell a manufacturing unit in Belgium to a Dutch EMS provider. Other stories: Flextronics buys a software firm, and Nortech will acquire a Suntron operation in Iowa. Plus MMI tabulates Q4 and 2006 results for 11 publicly held EMS providers.

January 2007. MMI's annual outlook for the year ahead -- the realities of a maturing EMS industry sink in. This outlook presents ten trends to watch for in 2007. Plus a new survey finds second thoughts about outsourcing. Also, MMI reveals a new order for the top-six EMS providers for 2006. As for industry news, Hon Hai is said to be planning a Vietnam investment.

December 2006. Four market research firms nearly agree on a CAGR (compound annual growth rate) for the EMS industry. In the News section, Sanmina-SCI reveals the extent of problems with its administration of equity awards. Jabil misses the extended deadline for filing its annual report because of its investigation of its stock option practices. Kimball Electronics Group will acquire Reptron Electronics. India's Solectron Centum will spawn a new EMS company. Hon Hai is said to be planning three more sites in China. Celestica lowers Q4 guidance.

November 2006. Jabil sets its sights on a cell-phone plastics supplier in a vertical integration move. MMI estimates that sales for the large U.S.-traded EMS providers will hit double digits in 2006. Q3 and nine-month results are tabulated for 16 U.S.-traded providers. Also, MMI presents a Q3 roundup of results for 11 of the world's largest EMS providers. In the news, Celestica's CEO resigns, and TT electronics acquires a US provider.

October 2006. MMI takes the wraps off cost reduction -- three OEMs go on the record. Plus a new forecast projects that ODMs will lose their growth advantage. In world markets, Ukraine is attracting EMS capital. In the news section, Benchmark plans to acquire Pemstar. Celestica divests its Italy operation. Sanmina-SCI releases findings of its stock options investigation. The editor's column looks at the effect of Hon Hai, the world's largest EMS provider.

September 2006. Combined results for 31 large providers showed a healthy first half of 2006 for outsourcing. Includes results of 12 EMS providers based outside the US and ten large ODMs. In the news, Flextronics intends to acquire an LCD company. PartnerTech gains a UK platform by acquiring a UK-based EMS provider. Andrew outsources filter work to Elcoteq. Sanmina-SCI will restate financial results as a result of an investigation into its stock option practices. Jabil delays release of full financials, pending completion of a review of its stock option practices.

August 2006. Based on guidance for Q3, combined sales for the nine largest US-traded providers are picking up as providers enter the second half of 2006. Includes Q2 and six-month results for 15 EMS providers. Flextronics will produce cameras for Kodak; company also enters motherboard business. European EMS activity to be sold. Apple issues report on Hon Hai audit. Options inquiry creates repercussions for one provider. The editor is tired of the tiers system used by many in the EMS industry.

July 2006. M&A slows in the first half as shown in MMI's data for industry M&A transactions closed in the first six months of 2006. MMI provides a breakdown of deals in five categories. In the Market Data section, Electronic Trend Publications releases its latest forecast for the outsourcing market. On the news side, Flextronics wins business from Juniper. Hon Hai intends to enter the LCD TV assembly business, reports say. Venture proposes to acquire an ODM. Also, the newsletter presents a roundup of results from five publicly traded EMS companies. In the Last Word, the editor finds unwarranted publicity in the media coverage of Hon Hai's Longhua, China, site.

June 2006. Jabil's streak ends after racking up 22 consecutive quarters of meeting or exceeding guidance. Sanmina-SCI shows that more vertical integration is going into Mexico. In the news, Hon Hai plans to acquire a Taiwan-based camera maker. Also, Hon Hai finds its Longhua, China, complex in the glare of media coverage. Plus Creation Technologies enlarges its US footprint. NOTE intends to gain a presence in Norway. IMI notches two more alliances. The SEC contacts a second EMS company regarding option grants. Flextronics is in a plastics deal with LEGO Group. Enics will take over an ABB activity. The shelter concept goes to China. In the editor's Last Word column, ODMs are still on a roll.

May 2006. The gulf widens between EMS and ODM growth among the Top 25 providers of outsourcing. The Top 25, comprising EMS providers and ODMs, are ranked by 2005 sales. Revenue for the Top 25 totaled $167.3 billion. A second feature shows large EMS providers are off to a tepid start in 2006. Q1 results are tabulated for 22 EMS providers and ten ODMs. In the news, Flextronics and Nortel complete the final phase of their outsourcing deal. A Canadian provider, PTL Electronics, is being sold. Kimball Electronics Group acquires an automotive PCBA unit. Jabil review finds no backdating.

April 2006. The cover story coins a new term -- lean outsourcing, a combination of lean manufacturing and outsourcing, and this new form of outsourcing is on its way. Exclusive MMI data shows that communications and IT still dominate the EMS business with 60% of combined sales from 43 large providers. Sales percentages by market segment are listed for the 43 companies. In the news, Flextronics intends to sell its software business in its latest and perhaps last divestiture move. Lyrtech, a Canadian DSP company, plans to acquire a Canadian EMS provider. Kimball Electronics takes over a medical operation in the UK. Benchmark raises its 2006 guidance. Certifications follow the thrust in nontraditional markets. The editor's Last Word points out that a proposed labor law in China could potentially interfere with EMS management.

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