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www.us -
tech.com
September 2023
Rapid Prototyping of Electronic Devices in the USA
Continued from page 24
to quickly bring new products to market is crucial for success in the electronics industry, given its fast-paced nature and intense competition. Reducing the time to move from concept through de- velopment and design for manu- facturability to a successful prod- uct launch holds significant ad- vantages. Those that move quickly can seize emerging op- portunities, gain a competitive edge, and establish a strong foothold in the marketplace. Ear- ly movers generally capture a larger share of the market by es- tablishing their brand presence before competitors.
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l Costs — A lot of money and ef- fort goes into the research and development of electronic de- vices. Once designs are complete, companies feel extreme pressure to optimize manufacturing processes and operational effi- ciencies to ensure profit margins remain above costs. Many com- panies outsource electronic as- sembly operations to Electronics Manufacturing Services (EMS) providers or Contract Electronic Manufacturing (CEM) compa- nies because they provide a vari- ety of high-value services that optimize processes and logistics to keep costs down.
Shifting Industry Trends Throughout history, the
U.S. has been a key player in electronics manufacturing, pro- ducing a substantial number of assemblies domestically. Howev- er, globalization and outsourcing
practices that began in the late 1970s led to an unprecedented amount of electronics manufac- turing being relocated to other areas.
Today the largest EMS oper-
ations are concentrated in China and Southeast Asia, where labor costs are low. Despite this shift, the U.S. has maintained a strong presence in electronics manufac- turing, with a number of EMS
The electronics industry is one of the largest economic sectors in the world.
and CEM companies that have developed advanced services and capabilities that cater to a vari- ety of demanding electronics technology applications such as consumer electronics, automo- tive, aerospace, and industrial robotics. In recent years, there has
been a strong and growing trend towards reshoring, the practice of bringing manufacturing oper- ations back to the country from which it originated. Several fac- tors have contributed to this trend. Increasing complexity and
customization requirements of electronic systems have created a greater need for collaboration between design, engineering, and manufacturing teams. By reshoring, companies improve communication and coordina- tion, resulting in improved prod- uct quality and faster innovation to full-production cycles. The global pandemic sound-
ed a wake-up call that highlight- ed supply chain weaknesses and geopolitical risks associated with offshoring. This has prompted companies to reassess their re- liance on offshore manufacturing partners. Reshoring provides greater control and oversight in logistics, creating a more secure and resilient supply chain with reduced logistical complexity, lead times and costs. Advancements in automa-
tion and robotics have made it more cost-effective to bring man- ufacturing back to higher-wage countries such as the U.S. The advantages of lower labor costs in offshore production are offset Continued on page 30
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