Original Design Manufacturing (ODM) Adds Value to Contract Electronics Manufacturing

One of the hottest growth areas in manufacturing over the past twenty years has been contract electronics manufacturing, that is, the manufacture by third-party firms of electronic goods ranging from smartphones to computer components to complete PCs and laptop computers. Some of the world’s largest manufacturers are in this category, such as China’s Hon Hai Precision Industry Co., Ltd. This industry is sometimes referred to as “Electronic Contract Manufacturing (ECM)” or “Electronics Manufacturing Services (EMS)”. The popularity of consumer electronics and wireless devices worldwide fueled this growth.

This growth in contract manufacturing has been part of a steady, long-term evolution from traditional, in-house manufacturing. For many years, the world of manufacturing has been acquainted with the concept of original equipment manufacturers (OEMs). An OEM is a company that manufactures a component (or sometimes a completed product) for sale to a company that will integrate that component into a final product or assembly. For example, a personal computer made under a brand name by a given company may contain various components, such as hard drives, graphics cards, chips or speakers, manufactured by several different OEM “vendors,” but the firm doing the final assembly/manufacturing process is the final manufacturer and the owner of the brand name.

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Original Design Manufacturing (ODM) Adds Value to Contract Electronics Manufacturing, Business and Industry Trends Analysis

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