IPC estimates EMS sales rose 21.5 percent in 1999

Soldering & Surface Mount Technology

ISSN: 0954-0911

Article publication date: 1 April 2000

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Citation

(2000), "IPC estimates EMS sales rose 21.5 percent in 1999", Soldering & Surface Mount Technology, Vol. 12 No. 1. https://doi.org/10.1108/ssmt.2000.21912aab.010

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Emerald Group Publishing Limited

Copyright © 2000, MCB UP Limited


IPC estimates EMS sales rose 21.5 percent in 1999

IPC estimates EMS sales rose 21.5 percent in 1999

Keywords: IPC, Electronics, Manufacturing, USA

The US market for electronics manufacturing services (EMS) industry increased 21.5 percent in 1999, to $27.4 billion, according to information just released by IPC for its soon-to-be-published report, 1999 Market for Electronics Manufacturing Services.

The report included 66 companies that assemble electronics on a contract basis. These companies had combined sales of $11.3 billion, representing 41 percent of the total estimated EMS market. It found computers and communications continue to be the largest markets for EMS providers, accounting for 53.4 percent and 26.8 percent of total 1999 sales respectively.

"Whether through acquisitions of OEM facilities or increase in business from new or current customers, outsourcing continues to grow", says IPC vice president of industry programs Tony Hilvers. 1999 saw growth in every EMS revenue tier from 1998, with the top tier (over $500 million) rising the most, 25 percent (see Table I).

Survey respondents indicated that 66 percent of sales came from existing business in 1999, 23 percent came from new business and 11 percent from new customers.

IPC predicts the US EMS market will continue to grow more than 20 percent annually, as it has since the late 1980s, topping $59 billion in 2003. Hilvers says product innovation and the increasing trend to outsource by OEMs are the two major factors contributing to expected growth.

The IPC Assembly Market Research Council commissioned the study. Final results will be available in the first quarter of 2000. For more information, contact IPC market research analyst John Hassman. Tel: (847) 790-5320; E-mail JohnHassman@ipc.org.