Electronic Manufacturing Services and their Applications Across Industries
ECM (Electronic Contract Manufacturing) and EMS (Electronic Manufacturing Services) are tricky terms since they mean more than the breaking down of their abbreviation would imply. These phrases refer to both an industry as well as a type of service provider (or service), hence the “contract” in the name. The core of any ECM provider is value-added engineering, design, manufacturing, assembly, etc. Why value-added? Because unlike many other industries and companies, ECMs work with another type of global player denoted by an abbreviation – OEM (Original Equipment Manufacturers), as well as other industry players.
The services provided by Electronic Contract Manufacturing firms allow OEMs to innovate, devote funds to R&D and market activities, while trusting the hardware and design to expert professionals.
The reality is: global demand for electronics of all types is growing (and the competition is as well). The market is also projected for growth of CAGR 7.5% in the coming years. This means unless large market players (including OEMs) focus on innovation, they are likely to fall behind. This drives the need for outsourcing numerous services related to prototyping, design, assembly, layout, wire-bonding, repair and rework.
Let’s break down the service applications of ECM services across just three industry groups (to keep it short) based on the example of ABC Assembly’s services.
(I)IoT and VR/AR
This industry/sphere is a relative newcomer to the electronics design and manufacturing scene, but it is an industry extremely “hungry” and dependent on electronic components.
The service applications for this area focus on (but are not limited to):
- Prototyping (as IoT and AR/VR is a very innovative sphere)
- Testing (new devices require extensive checks and test runs)
- Design and assembly
IoT AR/VR reaches into many other industries and businesses, as illustrated by Microsoft’s recent winning bid to supply $21 billion worth of AR headsets to the U.S. Army…which leads us neatly to the next industry cluster.
Aviation, Aeronautics and Defense
The example above already illustrates that electronics design and manufacturing is critically important in the aerospace and defense sectors. The focus for this group of industries lies with the fact that safety is often priority number one. Electronics used in aviation and defense require a high standard for quality, which means that beyond the usual list of ECM services, Quality Assurance takes the prime spot.
Medical and Biotech
We don’t really need to break this one down too much, as you’ve already guessed it. The world has changed with the COVID-19 pandemic. And as with any great time of change (or crisis), certain industries are pushed to the limit of R&D and innovation. This time, they are certainly the medical and biotech industries.
With unprecedented rates of production of vaccines, health devices, remote health solutions, wearables and more – Medtech and Biotech have a huge need for electronics manufacturing and design services.
The full spectrum of ECM services is used here, since implementation of new technologies has become lightning fast, but a few key areas to focus on would be design, assembly, fast prototyping and layout.