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www.us-tech.com
March, 2014 ElEctronic Mfg SErvicES
Important Considerations When Seeking A New CM
By Tom Krol, President, IMET Corporation, Southampton, PA
seas for the right company, often in China or elsewhere in the Far East, and an opportunity to enjoy savings in manufacturing costs once the CM had proven capable of providing the necessary quality and consistency of electronic products. But that sce- nario is rapidly changing as increas- ing labor and shipping costs are ren- dering the use of Far East CMs less attractive and a “Made in USA” ap- proach is resonating positively in all sectors of the global economy. Of course, many original equip-
S
ment manufacturers (OEMs) return- ing to the US have grown accustomed to the profitability possible by means of offshore production and are not consid- ering a return to in-house manufactur- ing in the US. They would rather not deal with the overhead and capital equipment investments needed for electronics assembly. Many electronics manufacturers
electing an electronics contract manufacturer (CM) traditional- ly has involved a search over-
are remaining lean by working with CMs on an as-needed basis. Such an arrangement provides considerable savings by sharing a CM’s overhead
and equipment amortization equitably among its customers. If working with a CM makes sense, the following consid- erations should be reviewed as part of
establishing a successful relationship with a CM based in the US.
Signing An NDA Working with a new CM places
intellectual property (IP) at risk, whenever another company is al- lowed to share one company’s prod- uct and technology secrets. This is most easily solved at the outset of a business relationship by having all parties sign a protective nondisclo- sure agreement (NDA) upfront - be- fore serious talks begin-to help estab- lish the trust needed for a successful relationship with a new CM. Such NDA forms are available on the In- ternet, and may also be available for download from the vendor’s website. In addition, NDAs prepared by lawyers can cover all the scenarios and circumstances that are not ade- quately treated by stock forms. Given the rapid evolution of
Performance testing is where rigors encountered during field usage are duplicated. Here Senior Technician Gregg Knopf gives a newly assembled signal system tougher treatment than provided by a user.
electronics technology, experience in manufacturing of specific sectors of
Continued on next page
See at APEX, Booth 725
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