Contract electronics manufacturing set for modest growth in 2013
Electronics outsourcing industry appears on track for steady expansion over the next few years, provided global economy co-operates
With mainland China as the hub of global production, the electronics contract manufacturing industry is forecast to post moderate revenue growth this year as it reaches a record US$404.5 billion.
That would mark a 4.5 per cent increase from US$387 billion last year, according to electronics market research firm IHS iSuppli.
In a report, IHS senior principal analyst Thomas Dinges said: "While this year's growth is slightly down from the estimated 5 per cent rise that the industry enjoyed in 2012, the next few years appear on track for solidly reliable - if unspectacular - rates of increase."
Provided the global economy co-operates, the industry's total revenue is projected to hit US$451.9 billion by 2016.
"Outsourced manufacturing is giving OEMs [original equipment manufacturers] across multiple industries the capability to expand into new, fast-growing markets, including smartphones, [media] tablets and industrial electronics," Dinges said.
Technology giant Apple, for example, has mainly relied on outsourced manufacturing to ramp up production and supply of its products worldwide.