Electronic contract manufacturing (ECM) provides a range of services for electronic components, from design to delivery and service. ECMs can specialize in specific areas, such as printed circuit board assembly, and offer more efficient and cost-effective production than independent companies.
Electronic contract manufacturing (ECM), also known as electronic manufacturing services (EMS), is a general term for a variety of services that a company can provide in the field of electronic components. Typical offerings can range from creating a product to preparing for final delivery and service. In most cases these services are performed for companies, known as original equipment manufacturers (OEMs), who will then sell the finished product under a brand name.
The mix of services provided by a contract electronics manufacturing company can vary widely, depending on the size and capabilities of the organization. Some common services offered in the early stages of creating a product include design and testing. An ECM can also manufacture and distribute the product. Other companies provide follow-up services such as repairs and returns.
Some electronics contract manufacturing companies specialize in specific areas, from the design stage to service or for a smaller portion of the manufacturing cycle. Others will offer services for the full product lifecycle of a specific type of electronics. Some common specialties include printed circuit board assembly, surface mount technology (SMT), and grid array (BGA).
Before the birth of the electronics contract manufacturing industry, companies handled all of their electronics manufacturing needs in-house. The development of the industry in the 1970s allowed companies to streamline their operations, including personnel, facilities and human resource management, by outsourcing them to other companies. In the early days of the industry, ECMs only offered manufacturing services. As companies responded positively to the business model, ECMs expanded their offerings, eventually moving from the prototype to the currently popular aftermarket management offerings. After a couple of decades of growth, some electronics companies have been quite impressed with the capabilities of EMS companies to sell their assembly plants to them, which has helped the industry grow exponentially.
It is possible for electronics contract manufacturing companies to produce products more efficiently, faster and at a lower cost than an independent company. EMS companies work on a larger scale than their customers and are therefore able to reduce the overall cost of materials by purchasing in larger quantities. They are also able to focus only on the various needs of the production which helps them streamline operations. With fewer areas to fine-tune, an EMS company can even build a system that produces a superior product to a company that tries to handle everything in-house and therefore has fewer resources to manufacture.
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