Is there still a consolidation happening in the EMS or ODM Industries for electronics manufacturing?
This was selected as Best Answer I agree with Teresa. In my current organization i am seeing the same strategic move towards becoming an ODM. Cost structures are rising and given the high commodity prices, margins are falling thus forcing them to move towards becoming an ODM to get high value add and hence high margin work. All said, we could divide your question into 2 categories: based on Tier levels and based on volume/mix ratios. EMS consolidation may be opposed by the OEM as they will have lesser barganing power especially in the low volume-high mix category. However, in the high volume-low mix category it must have been initiated by the OEM itself to spread the cost base further. I think it is fair to assume that there would be more consolidation among the Tier3 and Tier4 suppliers in the high volume/low mix category as they will bear the brunt of Tier1 and Tier2 supplier consolidation. Many firms in the low volume/high mix category may have sufficient pricing power to resist con
