According to a report by Frost & Sullivan, the EMS market will remain strong through 2007. "The North American EMS industry is consolidating quickly through mergers and acquisitions, spurring extraordinary growth rates for many multinational companies," says Frost & Sullivan industry analyst Raman Monga. Top-tier companies are acquiring smaller companies and OEM assets to boost capacity and gain supply chain effectiveness.
At the same time, OEMs are increasingly outsourcing to EMS providers to streamline manufacturing, eliminate manufacturing plants, reduce capital costs and rapidly meet demand.