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New IPC Study Predicts Impact of On-Shoring in North American Electronics Industry

Aug 16, 2012

Electronics manufacturing operations with a total value of at least $2.5 billion are expected to be brought to North America in the next three years, according to a much-anticipated new study, On-Shoring in the Electronics Industry: Trends and Outlook for North America, published this week by IPC – Association Connecting Electronics Industries®.

Based on a May 2012 survey of 229 companies with global revenues totaling more than $935.3 billion, the study indicates that on-shoring — actions by North American manufacturers to return overseas operations to North America or to build new operations in the region — has been occurring and will continue.

Survey results showed that original equipment manufacturers (OEMs) were largely responsible for operations returned to North America from overseas since 2009, accounting for more than 90 percent of the value and number of jobs brought back. The electronics manufacturing services (EMS) industry was also a big contributor. One-quarter of operations that returned to North American since 2009 came from China, with other countries making up the other 75 percent.

The EMS industry accounts for the largest share of overseas operations that participating companies plan to bring back to North America in the next three years. New operations, however, represent a much larger share of future North American production and these planned new operations were reported primarily by OEMs.

Companies cited quality control as the primary reason for bringing operations back to North America from overseas. However, being closer to customers is the driving force for companies establishing new operations in North America.

The study reports detailed findings on industry segments and types of products manufactured by operations that have been returned to or established in North America since 2009. It also covers operations targeted for location in North America in the next three years, as well as the number of jobs these operations represent. Trends in the dynamics between outsourcing and domestic sourcing by North American electronics manufacturers are also covered. In addition, the study includes an analysis of the rationale (and deterrents) behind on-shoring and the future outlook for North American manufacturers.

On-Shoring in the Electronics Industry: Trends and Outlook for North America is 54 pages long, and is available to IPC members for $150. The industry price is $300.

For more information or to purchase the report, visit www.ipc.org/on-shoring-2012.


IPC (www.IPC.org) is a global industry association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 3,100 member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $2.02 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Arlington, Va.; Stockholm, Sweden; Moscow, Russia; Bangalore, India; and Shanghai, Shenzhen and Beijing, China.
 

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