Why EMS diversification is more important now than ever before

EMSNOW asked Benchmark’s Chief Technology Officer Jan Janick to comment on technology trends and how EMS companies have responded to evolving customer requirements. “Because technology today is focused on the integration of emerging technologies into current product sets and in entirely new product capabilities, companies can no longer operate in a vacuum,” he contends.

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From the Publisher: EMS Industry Revenue Diversification

The EMS business model went under attack due in part to the concept of continuous cost reduction that OEMs wanted to build into their agreements. Did anyone really do the math on that? A 2-3% price reduction every quarter ends up at zero eventually. Something had to give. And it did. EMS companies have figured out how not to go bankrupt…at least the ones that survived seem to have.

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