"Having realized the viability of the EMS industry as a key partner for embracing their economic value, multinational OEMs have aggressively embraced the EMS industry by shedding many of their manufacturing plants throughout the world," Cage said. OEM divestitures are increasing. During the first 9 months of 2000, EMS companies were involved in 25 major OEM divestitures, compared to 24 such divestitures for all of 1999.
EMS Industry Continues Growth
The electronics manufacturing services (EMS) industry has passed the $50 billion mark in annual revenues and should grow an estimated 61% during 2001, according to Bill Cage of First Union Securities. The growth can be attributed to expansion in industrial markets, strong growth of the electronics industry, increased divestitures of plants by OEMs and a broader variety of services being offered by EMS companies.