http://charliebarnhart.com Insights into the world of global electronics manufacturing Wed, 10 Dec 2008 11:25:30 +0000 http://backend.userland.com/rss092 en Based on projections of a zero-growth year for the global Electronics Industry, it is estimated that CY2009 revenue in the EMS sector will be flat to up less than 1%, but as this projection includes both CMs (forecast to be flat to down 3%) and ODMs (forecast to be flat ... http://charliebarnhart.com/archives/impact/ "This is an industry that's extremely dependent on its ability to absorb its fixed costs. EMS companies do that by continually growing their top line. We are expecting at best a flat year, and at worst a loss of 3-5%. Net of consolidation, this could be a very tough year for the EMS ... http://charliebarnhart.com/archives/q3-webcast/ Excerpts from the Leading Indicators monthly reports… June 2008 * Mexico – Almost unchanged over the past 2-3 years but increasing utilization for both PCBA & BOX should begin to yield reductions in rates. Geography remains an attractive on-shore solution for its’ NAFTA partners… * China – 38% increase in PCBA over the ... http://charliebarnhart.com/archives/no-more-ambiguity-mexico-is-lowest-labor-cost-region/ We've been following the conversation on an Industry Week forum.   I felt I had to weigh in on this topic, because I believe there's a lot of misinformation, especially as it applies to electronics manufacturing.   I’ve managed and trained workers from every level of business (factory floor through ... http://charliebarnhart.com/archives/43/ Charlie Barnhart & Associates LLC isn’t in the business of writing testimonials, but we think it’s important to let our OEM clients know that we’ve finally found an EMS case-study that has actually risen to the challenge of lower volume/higher mix manufacturing by application of a NASCAR ‘pit crew’ ... http://charliebarnhart.com/archives/lean/ No matter who wins the election, it’s very likely military spending will be drastically cut as Americans pressure Congress to fix the domestic economy and explore energy initiatives. Charlie Barnhart & Associates (CBA)  research reveals a disturbing consequence of lower defense spending on the domestic EMS industry that ... http://charliebarnhart.com/archives/stealth-attack-on-ems-industry/ A lot has been written recently about the dwindling availability of cheap labor in China. ( See 9/6 issue of The Economist, "Reserve army of underemployed") Some propose that the good times (for Western electronics OEMs) will soon be drawing to a close – some claim there is plenty of ... http://charliebarnhart.com/archives/cheap-labor/ Cost of Labor: According to the most recent edition of The Charlie Barnhart Leading Indicators Monthly Report, the average cost of labor for Electronic Manufacturing Services in most global geographies continues to rise at a rate equal to or slightly above the currency adjusted local inflationary index, the exceptions being the ... http://charliebarnhart.com/archives/dramatic-shifts-in-labor-prices-and-usable-capacity/ Charlie Barnhart discusses his research methodology and the current state of the art of Electronics Manufacturing Outsourcing. Register for immediate playback now! http://charliebarnhart.com/archives/recording/ POSTED BY CHARLIE BARNHART ON TECHNOLOGY FORECASTERS BLOG For many reasons, Technology Forecasters has been predicting a return to the regional sourcing strategy that was the hallmark of electronics manufacturing before Y2K and the rush to build anything and everything in China. (For example, see the May article ... http://charliebarnhart.com/archives/baseless-assumptions-led-us-astray-from-regional-strategy/