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Global - Electronic Manufacturing Services 0199 - 2316 - 2009
The global electronic manufacturing services market shrank by 13.8% in 2009 to reach a value of $160 billion.
Market value forecast
In 2014, the global electronic manufacturing services market is forecast to have a value of $222.5 billion, an increase of 39.1% since 2009.
Market segmentation I
Computer applications is the largest segment of the global electronic manufacturing services market, accounting for 35% of the market's total value.
Market segmentation II
Asia-Pacific accounts for 50.4% of the global electronic manufacturing services market value.
Market share
Foxconn Electronics (Hon Hai Precision Industry) is the leading player in the global electronic manufacturing services market, generating a 26.8% share of the market's value.
Market rivalry
Fierce competition is present between players in the market because of a number of factors including high-fixed costs and exit barriers.
CONTENTS
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
For the purpose of this profile, the global electronic manufacturing services market consists of companies that manufacture electronic equipment mainly for OEMs (Original Equipment Manufacturers). The market is valued on the basis of revenues received by the contract manufacturing companies for such contracts. The market value does not include the Original Design Manufacturer (ODM) segment. However, some electronic manufacturing services (EMS) companies also offer ODM services, and their market share may include ODM revenues. The regional segmentation is based on the geographical site of the EMS company headquarters. All currency conversions are calculated using constant average annual 2009 exchange rates.
For the purposes of this report, the global market consists of North America, South America, Western Europe, Eastern Europe, and Asia-Pacific.
MARKET OVERVIEW
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
The electronic manufacturing services market generated total revenues of $160 billion in 2009, representing a compound annual growth rate (CAGR) of 4.3% for the period spanning 2005-2009.
The computer applications segment proved the most lucrative for the electronic manufacturing services market in 2009, generating total revenues of $56 billion, equivalent to 35% of the market's overall value.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 6.8% for the five-year period 2009-2014, which is expected to drive the market to a value of $222.5 billion by the end of 2014.
MARKET OVERVIEW
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
After a period of strong, double-digit growth, the global electronic manufacturing services market fell into marginal decline in 2008, which further deepened into 2009. In the forecast period, recovery is expected in 2010 and the market is set to grow steadily, however at a lower rate.
The electronic manufacturing services market generated total revenues of $160 billion in 2009, representing a compound annual growth rate (CAGR) of 4.3% for the period spanning 2005-2009. In comparison, the Americas and Asia-Pacific markets respectively comprise 20.9% and 50.4% of the global market, reaching respective values of $33.4 billion and $80.6 billion in 2009.
The computer applications segment proved the most lucrative for the electronic manufacturing services market in 2009, generating total revenues of $56 billion, equivalent to 35% of the market's overall value. In comparison, the communications equipment segment generated revenues of $43.2 billion in 2009, equating to 27% of the market's aggregate revenues.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 6.8% for the five-year period 2009-2014, which is expected to drive the market to a value of $222.5 billion by the end of 2014.
MARKET VALUE
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
Foxconn Electronics (Hon Hai Precision Industry) is the leading player in the global electronic manufacturing services market, generating a 26.8% share of the market's value.
Flextronics International Ltd. accounts for a further 14.8% of the market.
Table 4: Global electronic manufacturing services market share: % share, by value, 2009 Company % ShareFoxconn Electronics (Hon Hai Precision Industry) 26.8%Flextronics International Ltd. 14.8%Jabil Circuit 7.3%Celestica 3.8%Other 47.3%
Total 100%
Source: Datamonitor D A T A M O N I T O R
Figure 4: Global electronic manufacturing services market share: % share, by value, 2009
Source: Datamonitor D A T A M O N I T O R
COMPETITIVE LANDSCAPE
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
The electronic manufacturing services market will be analyzed taking manufacturers of electronic equipment (including industrial automation and control equipment as well as test and measurement equipment) as players. The key buyers will be taken as companies operating in a diverse range of equipment manufacturing such as healthcare, automotive and consumer electronics, and manufacturers of raw materials (steel, copper, aluminum, mineral oil and various plastics), fabricated products and electronic components as the key suppliers.
Fierce competition is present between players in the market because of a number of factors including high-fixed costs and exit barriers.
The vast majority of market players are involved in supplying original equipment manufacture (OEM) manufacturing electronic products on a contract basis for the OEM market of computer and electronics companies. Market players are generally reliant on the growth and condition of their buyers' businesses, and are often dependent on a small number of large customers. However, market players are often vertically integrated companies that design and manufacture products and offer after-sales service. Consequently, contracts are often long-term, which can result in switching costs for buyers. Inputs to the sector are varied and can usually be sourced from a range of suppliers. However, for certain specialized components, market players will often rely on a sole supplier. The loss of such a supplier can have an adverse effect on the market players' business and thus strengthens supplier power. The likelihood of new entrants to the market is highly dependent on technological capability and having the means to invest heavily in research and development. Recent decline in the market serves to further dissuade new entrants and increase rivalry amongst incumbents.
Many buyers in this market are large multinational companies who have powers to negotiate and exert downward pricing pressure on market players. However, market players are often vertically integrated companies that design and manufacture products and offer after-sales service, which diminishes buyer power. Buyers often enter into contracts with manufacturers (some of which last several years), which can result in switching costs. Such contracts usually require a buyer to take minimum quantities per year or pay a penalty. Contracts such as these, while weakening buyer power, also ensure that customers are assured an adequate supply. Products manufactured by market players are often indispensable to the business of their buyers, which reduces buyer power even further. In some cases, electronic equipment is made to order, in which case buyer power is weaker. However, numerous products in the market are commoditized and highly undifferentiated. Overall, buyer power in this market is assessed as moderate.
Inputs to this market include a wide variety of components, assemblies, software and raw materials. Many market players use a wide variety of suppliers to reduce dependence on any one supplier, thus weakening supplier power. However, players are generally dependent on one or a limited number of suppliers for some particular components. Consequently, if any such suppliers were to cancel or materially change contracts or fail to meet the quality or delivery requirements needed to satisfy customer orders for products, market players could lose customer orders. As a result, players would be unable to
COMPETITIVE LANDSCAPE
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
develop or sell certain products cost-effectively or on a timely basis, if at all, and have significantly decreased revenues and earnings. This, in turn, would have an adverse effect on business, results of operations and financial condition. Such suppliers have disproportionately high supplier power. A number of market players attempt to address potential disruption in the supply chain through techniques such as qualifying multiple sources of supply, and redesigning products to use alternative components. Such tactics effectively reduce supplier power. To reduce manufacturing costs further, companies are backward integrating into technologies that complement their manufacturing processes. Supplier power is assessed as moderate in this market overall.
Market players are generally large, multinational, vertically integrated companies. Such companies benefit from economies of scale in manufacturing, logistics and procurement. Furthermore, companies require market-focused expertise and capabilities in design and engineering, raising barriers to entry for potential new companies. Market players must anticipate trends that impact their customers' businesses, and improve their market positioning by effectively adjusting product plans and roadmaps to deliver low-cost, high quality products. Consequently, companies need to invest heavily in R&D to maintain their market share. This can pose a further barrier to entry. The environment of this market is fast-paced; companies need to remain ahead of technological advancements to be successful. Supplying an industry that is hugely driven by innovation, it is important for market players to focus upon emergent technologies in order to ensure their future prosperity and market shares. Gaining a competitive advantage within this market requires numerous patent and other intellectual property rights. Whilst overall growth in the market has been good in the past few years, recent declines in 2008 and 2009 makes entrance more difficult and dissuades potential new companies. Overall, the likelihood of new entrants to this market is assessed as moderate.
Substitutes for the service offered by players in this market are hard to find. Companies are generally vertically integrated; they design, manufacture and deliver products as well as offering an after-sales service. A possible alternative for companies in the OEM market is to reduce reliance on such contract companies by carrying out such services in-house. However, this may prove to be more costly for buyers. The threat of substitutes in this market is assessed as weak overall.
The global electronic manufacturing services market is highly concentrated and dominated by large, multinational players. Companies operating in this market are under significant pressure due in part to their reliance upon the operations of OEMs. Fierce competition is present between players in the market because of a number of factors, including high-fixed costs and exit barriers. In recent years the declining market growth has intensified the rivalry in this market. As OEMs struggle with escalating manufacturing costs caused in part by increasing crude oil prices combined with intense price competition, they are increasingly outsourcing parts of their manufacturing processes. As a result, the electronic manufacturing services market is developing, especially within Asia-Pacific region, where low labor costs keep R&D and manufacturing costs low and allow companies to offer competitive prices. This serves to alleviate rivalry to an extent, which is assessed as strong overall.
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
Table 5: Hon Hai Precision Industry Company Limited: key facts Head office: 2 Zihyou Street, Tucheng City, Taipei County, TWN Telephone: 886 2 2268 3466 Fax: 886 2 2268 6204 Website: www.foxconn.com.tw Financial year-end: December Ticker: 2317 Stock exchange: Taipei Source: company website D A T A M O N I T O R
Hon Hai Precision Industry Company (Hon Hai) is a Taiwan-based manufacturer of connectors and cable assemblies. It is one of the largest manufacturers of connectors and cable assemblies in the world. Foxconn is the registered trade name of the company. Hon Hai has distribution centers across many cities in Asia, Europe, and Americas. The company's principal manufacturing operations are based in Taiwan and mainland China, with additional production facilities in Europe and the US. It is headquartered in Taipei, Taiwan, and employs about 200,000 people.
The company provides its products under three categories: electronic parts and components, modules, and assembled electronic products.
Electronic parts and components include connectors and cable assemblies. The company produces connectors and cable assemblies for the computer, automobile, communications, consumer products, medical, and defense industries. It specializes in manufacturing products for PCs and PC servers and peripherals.
The PC enclosures business provides casing that can be sold together with floppy disk drives, switching power supplies, connectors, cable assemblies, and riser cards. It also provides integrated mechanical solutions for customers' thermal, acoustic, environmental, mechanical, functional, and design problems.
Hon Hai's mold making and tooling business involves the production of the dies and molds required for its manufacturing operations. Production of these dies and molds takes place in mainland China and Taiwan.
The company also offers modules, including mechanic modules and electronic modules. It also provides assembled electronic products. In addition, the company is engaged in Original Design Manufacturing
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
(ODM). It produces notebook computers, games consoles, and other electronic devices for companies such as Apple, Cisco, Nokia, Dell and Sony.
The company also runs an e-commerce website, ascentrall.com. Hon Hai operates the website as an accessory center to provide diverse products for desktop computers, notebooks, mobile phones, pocket PCs, audio, consumer electronics, cameras and games.
Hon Hai also offers channel services through one of its business group, Channel Innovation & Service Group (CISG). CISG provides channel solutions to customers around the globe. In addition to providing reliable, high-quality products to all its customers, CISG enables a vast range of PC assemblers, retailers and end-users the freedom to create their own computing solutions.
Key Metrics
The company recorded revenues of TWD1,420.6 billion (approximately $42.9 billion) in the fiscal year ending December 2009, a decrease of 3.6% compared to fiscal 2008. Further financial information is unavailable.
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
Table 6: Jabil Circuit Inc: key facts Head office: 10560 Dr. Martin Luther King Jr. Street North, St. Petersburg, Florida
33716, USA Telephone: 1 727 577 9749 Fax: 1 727 579 8529 Website: www.jabil.com Financial year-end: August Ticker: JBL Stock exchange: New York Source: company website D A T A M O N I T O R
Jabil Circuit (Jabil) is an electronics solutions company providing electronics design, production and product management services to electronics and technology companies. The company designs and manufactures electronic circuit board assemblies and systems for original equipment manufacturers (OEMs) in the aerospace, automotive, computing, consumer, defense, instrumentation, medical, networking, peripherals, storage and telecommunication industries. The company's main customers include Cisco Systems, Hewlett-Packard, International Business Machines (IBM), Motorola, Network Appliance, NEC, Nokia, Nokia Siemens Networks, Royal Philips Electronics, and Tellabs. The company operates through 55 facilities in 22 countries worldwide. It is headquartered in St. Petersburg, Florida, and employs about 61,000 people as of August 2009.
The company's business units provide services such as: integrated design and engineering; component selection, sourcing and procurement; automated assembly; design and implementation of product testing; parallel global production; enclosure services; systems assembly and direct order fulfillment, and configure to order; and repair and warranty services to its manufacturing customers. Jabil conducts its operations in facilities that are located in Austria, Belgium, Brazil, China, England, France, Germany, Hungary, India, Ireland, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Scotland, Singapore, Taiwan, Ukraine, Vietnam and the US.
In September, 2007, the company reorganized its manufacturing business into a consumer division and an electronic manufacturing services (EMS) division. Based on this reorganization, Jabil currently operates through three operating divisions, including: consumer, EMS and aftermarket services (AMS). These divisions provide cost-effective solutions for customers by grouping business units with similar needs together into divisions, each with full accountability for design, operations, supply chain management and delivery.
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
The AMS division provides warranty and repair services to customers in a broad range of industries, including certain manufacturing customers. The company's consumer division dedicates resources designed to meet the particular needs of the consumer products industry and focuses on cell phones and mobile products, televisions, set-top boxes and peripheral products such as printers. The EMS division focuses on the traditional and emerging electronic manufacturing services business sectors, including automotive, computing, defense and aerospace, industrial, medical, networking, storage and telecommunications businesses.
The company offers a range of value-added design services for products that it manufactures for its customers. It offers design services, including electronic design, industrial design services, mechanical design, computer-assisted design (CAD), product validation and product solutions.
Jabil's electronic design team provides electronic circuit design services, including application-specific integrated circuit (ASIC) design and firmware development. These services are used to develop a range of circuit designs for cellular telephone accessories, notebook and personal computers (PC), servers, radio frequency (RF) products, video set-top boxes, optical communications, personal digital assistants (PDA), communication broadband products, and automotive and consumer appliance controls.
The company's industrial design team assists in designing the look and feel of the plastic and metal enclosures that house printed circuit board assemblies (PCBA) and systems. The company's mechanical engineering design team offers three-dimensional (3-D) design and analysis of electronic and optical assemblies using modeling and analytical tools.
Jabil's CAD team provides PCBA design and other related services. These services include PCBA design services, using CAD and computer-assisted engineering (CAE) tools; PCBA design testing and verification services; and other consulting services, which include the generation of a bill of materials, approved vendor list and assembly equipment configuration for a particular PCBA design.
The company's product validation team provides complete product and process validation. This includes system test, product safety, regulatory compliance and reliability. Jabil's product solutions group offers system-based solutions to engineering problems and challenges on the design of new technologies and concepts in specific areas. The company's design centers are located in: Vienna, Austria; Hasselt, Belgium; Beijing, Tianjin and Shanghai, China; St. Petersburg, Florida; Jena, Germany; Tokyo, Japan; Auburn Hills, Michigan; and Taichung and Taipei, Taiwan.
Jabil offers systems assembly, test and direct-order fulfillment services to its customers. The company's systems assembly services extend its range of assembly activities to include assembly of higher level sub-systems and systems incorporating multiple PCBs. In addition, Jabil provides testing services, based on quality assurance programs developed for its customers. The company's quality assurance program includes circuit testing under various environmental conditions. It also offers direct order fulfillment services for the delivery of final products it assembles for its customers.
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
The company also provides after-market services to its manufacturing customers from the strategic logistics hub locations. It also serves the customers' products upon completion of the traditional manufacturing and fulfillment process. The company's aftermarket service centers are located in: Shanghai, China; Coventry, England; St. Petersburg, Florida; Szombathely, Hungary; Louisville, Kentucky; Penang, Malaysia; Chihuahua and Reynosa, Mexico; Amsterdam, The Netherlands; Bydgozcz, Poland; Memphis, Tennessee; and Round Rock and McAllen, Texas.
Key Metrics
The company recorded revenues of $11,685 million in the fiscal year ending August 2009, a decrease of 8.6% compared to fiscal 2008. Its net loss was $1,165 million in fiscal 2009, compared to a net income of $134 million in the preceding year.
Table 7: Jabil Circuit Inc: key financials ($) $ million 2005 2006 2007 2008 2009Revenues 7,524.4 10,265.4 12,290.6 12,779.7 11,684.5Net income (loss) 231.8 164.5 73.2 133.9 (1,165.2)Total assets 4,077.3 5,411.7 6,295.2 7,032.1 5,317.9Total liabilities 1,942.0 3,117.2 3,843.5 4,309.0 3,875.4Employees 40,000 49,000 61,000 61,000 61,000 Source: company filings D A T A M O N I T O R
Table 8: Jabil Circuit Inc: key financial ratios Ratio 2005 2006 2007 2008 2009Profit margin 3.1% 1.6% 0.6% 1.0% (10.0%)Revenue growth 20.3% 36.4% 19.7% 4.0% (8.6%)Asset growth 22.5% 32.7% 16.3% 11.7% (24.4%)Liabilities growth 28.6% 60.5% 23.3% 12.1% (10.1%)Debt/asset ratio 47.6% 57.6% 61.1% 61.3% 72.9%Return on assets 6.3% 3.5% 1.3% 2.0% (18.9%)Revenue per employee $188,110 $209,498 $201,485 $209,503 $191,550Profit per employee $5,795 $3,357 $1,200 $2,195 ($19,102) Source: company filings D A T A M O N I T O R
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
Table 9: Celestica Inc.: key facts Head office: 12 Concorde Place, 5th Floor, Toronto, Ontario M3C 3R8, CAN Telephone: 1 416 448 5800 Fax: 1 416 448 4810 Website: www.celestica.com Financial year-end: December Ticker: CLS; TSX Stock exchange: New York; Toronto Source: company website D A T A M O N I T O R
Celestica provides electronics manufacturing services and solutions to original equipment manufacturers (OEMs). The company serves OEMs in the communications, computing, consumer and industrial, aerospace and defense markets. It offers a range of services including prototyping, product assembly and test, systems assembly, product assurance, failure analysis, warehousing and distribution, freight management, logistics consulting, and packaging services. It operates in Asia, the Americas and Europe. The company is headquartered in Toronto, Canada, and employs about 35,000 people as of December 2009.
Its major customers include Alcatel-Lucent, Avaya, Cisco Systems, EMC, Hewlett-Packard, IBM, Microsoft, Motorola, NEC, Raytheon, Research in Motion and Sun Microsystems.
The company operates in one segment. It is engaged in providing end to end supply chain services, offering a full spectrum of product design, manufacturing, order fulfillment, delivery (including reverse logistics), after-market repair and product reclamation services.
Its design services cover the entire product lifecycle. The company uses its proprietary CoreSim Technology to offer its solutions. It also offers Green Services, a suite of services which allow its customers to comply with environmental legislation, including the Restriction of Hazardous Substances (RoHS), and Waste Electrical and Electronics Equipment (WEEE) directives.
The company's range of design services include functional, collaborative, sustaining / value engineering and total product solutions. It also has a joint venture with HCL Technologies, a design and engineering services provider, through which they offer scalable design solutions in all key disciplines and across all market segments. It provides design services to communications, consumer, enterprise and industry markets.
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
It offers a range of manufacturing services from printed circuit assembly (PCA) to complex systems integration and configuration. Its services portfolio includes analysis of design for manufacturability and testability; pre-production and volume production; printed circuit assembly and test; systems assembly and test; complex systems integration; and traceability services from component level through to finished product.
The company provides prototyping services in collaboration with OEM engineers to build early-stage products. It provides these services at its product introduction centers, which strategically are located to provide a quick response in the early stages of the product development lifecycle.
The product assembly and test services ensure product quality, reduce cost and improve delivery time to customers. The systems assembly services include combining and testing a wide range of subassemblies and components before shipping the end products to their final destination.
It provides product assurance to OEM customers. Its product assurance teams perform product life testing and full circuit characterization to ensure that designs meet or exceed required specifications. Its failure analysis services concentrate on identifying the root cause of product failures and determining corrective actions. As part of the services, the products are subjected to various environmental extremes, including temperature, humidity, vibration, voltage and rate of use. It also simulates field conditions in failure analysis laboratories.
The company provides fully integrated logistics solutions to its customers. Its logistics offering include warehouse and distribution, freight management, logistics consulting services, product and materials visibility and reverse logistics. Its packaging and global fulfillment services design and test the packaging of products for bulk shipment or single end-customer use. The after-market services include a wide range of offerings including field failure analysis, product upgrades, repair and engineering change management.
Key Metrics
The company recorded revenues of $6,092 million in the fiscal year ending December 2009, a decrease of -20.7% compared to fiscal 2008. Its net income was $104 million in fiscal 2009, compared to a net loss of -$721 million in the preceding year.
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
Table 10: Celestica Inc.: key financials ($) $ million 2005 2006 2007 2008 2009Revenues 8,471.0 8,811.7 8,070.4 7,678.2 6,092.2Net income (loss) (46.8) (150.6) (13.7) (720.5) 103.5Total assets 4,857.8 4,686.3 4,485.8 3,786.2 3,106.1Total liabilities 2,699.3 2,747.7 2,489.3 2,420.7 1,630.3Employees 47,000 42,000 42,000 38,000 35,000 Source: company filings D A T A M O N I T O R
Table 11: Celestica Inc.: key financial ratios Ratio 2005 2006 2007 2008 2009Profit margin (0.6%) (1.7%) (0.2%) (9.4%) 1.7%Revenue growth (4.2%) 4.0% (8.4%) (4.9%) (20.7%)Asset growth (1.7%) (3.5%) (4.3%) (15.6%) (18.0%)Liabilities growth (1.2%) 1.8% (9.4%) (2.8%) (32.7%)Debt/asset ratio 55.6% 58.6% 55.5% 63.9% 52.5%Return on assets (1.0%) (3.2%) (0.3%) (17.4%) 3.0%Revenue per employee $180,234 $209,802 $192,152 $202,058 $174,063Profit per employee ($996) ($3,586) ($326) ($18,961) $2,957 Source: company filings D A T A M O N I T O R
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
Table 12: Flextronics International Ltd.: key facts Head office: 2 Changi South Lane, Singapore 486123, SGP Telephone: 65 6299 8888 Fax: 65 5431 888 Website: www.flextronics.com Financial year-end: March Ticker: FLEX Stock exchange: NASDAQ Source: company website D A T A M O N I T O R
Flextronics is one of the leading providers of electronics design, manufacturing and logistic services to original equipment manufacturers (OEMs). The company offers services to different markets, including: communications; automotive, marine and aerospace; health care; and consumer electronics. The company primarily operates Asia. It is headquartered in Singapore City, Singapore, and employs 160,000 people as of March 2009.
The company offers its services to industry leaders including Casio, Cisco Systems, Dell Computer, Eastman Kodak, Ericsson Telecom, Hewlett-Packard, Microsoft, Motorola, Nortel Networks, Sony-Ericsson, Sun Microsystems and Xerox. It also provides logistics and after sales services for electronics products. Flextronics operates a network of design, manufacturing and logistics facilities in Asia, Americas and Europe. The company has manufacturing facilities in over 25 countries.
The company offers electronics manufacturing services (EMS) including printed circuit board and flexible circuit fabrication; systems assembly and manufacturing; logistics; after sales services; design and engineering services; original design manufacturing (ODM) services; and components design and manufacturing.
The printed circuit board (PCB) and flexible circuit fabrication services of the company includes manufacturing of high-density, multilayer and flexible printed circuit boards. The company manufactures PCBs on a low-volume, quick-turn basis, and on a high-volume production basis. The company also offers quick-turn prototype services, which provide small test quantities in as little as 48 hours. It has PCB and flexible circuit fabrication service facilities in Americas, Europe and Asia.
Flextronics' systems assembly and manufacturing operations include assembly of PCBs, and systems and subsystems using PCBs and electromechanical components. The company offers systems assembly
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
and manufacturing services either on build-to-order or configure-to-order basis. The company's systems assembly and manufacturing activity includes: enclosures; testing services; and materials procurement and inventory management.
The company offers a range of custom electronic enclosures and related products and services. The company designs, manufactures and integrates electronics packaging systems; including custom enclosure systems; power and thermal subsystems; interconnect subsystems; and cabling and cases. The company also provides services to assist the design of electronic packaging systems.
Testing services of the company include: computer-aided testing services for assembled PCBs, systems and subsystems. The test services include management defect analysis, in-circuit testing and functional testing. In addition, it also provides environmental stress tests of board and system assemblies. The materials procurement and inventory management consist of the planning, purchasing, expediting and warehousing of components and materials used in the manufacturing process. The company sources custom components from third-party suppliers. The company also provides suppliers with just-in-time delivery services.
Flextronics' logistics services offers global logistics services and turnkey supply chain solutions to its customers. The company's worldwide logistics services include freight forwarding, warehousing/inventory management and outbound/e-commerce solutions. In addition, the company also offers SimFlex simulation software allowing customers to simulate, analyze and evaluate complex supply chain scenarios, critical operating characteristics and performance metrics, and supply chain trade-offs.
Flextronics also provides a range of after-sales services, including product repair, re-manufacturing and maintenance at repair depots, logistics and parts management, returns processing, warehousing and engineering change management. The company provides after-sales services through a network of operations, hubs and centers in several countries.
The company offers design and engineering services including a range of value-added design and engineering services from contract design services (CDS) to original design manufacturing (ODM). The company's ODM products are offered by OEM customers under their respective brand names. The company's design and engineering services include user interface and industrial design; mechanical engineering and tooling design; electronic system design; and PCB design.
The components design and manufacturing services include the company's components group developing a range of products for OEMs. The components offered by the company include camera modules, power supplies, antennas, radio frequency (RF) modules, small and medium form factor display modules for mobile phones, MP3 players, industrial and commercial products and digital cameras.
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
The company recorded revenues of $30,949 million in the fiscal year ending March 2009, an increase of 12.3% compared to fiscal 2008. Its net loss was $6,086 million in fiscal 2009, compared to a net loss of $639 million in the preceding year.
Table 13: Flextronics International Ltd.: key financials ($) $ million 2005 2006 2007 2008 2009Revenues 15,730.7 15,288.0 18,853.7 27,558.1 30,948.6Net income (loss) 339.9 141.2 508.6 (639.4) (6,086.1)Total assets 11,009.8 10,958.4 12,341.4 19,524.9 11,317.5Total liabilities 5,785.7 5,243.7 6,164.7 11,360.5 9,483.3Employees 92,000 99,000 116,000 162,000 160,000 Source: company filings D A T A M O N I T O R
Table 14: Flextronics International Ltd.: key financial ratios Ratio 2005 2006 2007 2008 2009Profit margin 2.2% 0.9% 2.7% (2.3%) (19.7%)Revenue growth 8.6% (2.8%) 23.3% 46.2% 12.3%Asset growth 14.9% (0.5%) 12.6% 58.2% (42.0%)Liabilities growth 10.9% (9.4%) 17.6% 84.3% (16.5%)Debt/asset ratio 52.6% 47.9% 50.0% 58.2% 83.8%Return on assets 3.3% 1.3% 4.4% (4.0%) (39.5%)Revenue per employee $170,986 $154,424 $162,532 $170,112 $193,429Profit per employee $3,695 $1,426 $4,384 ($3,947) ($38,038) Source: company filings D A T A M O N I T O R
LEADING COMPANIES
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
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APPENDIX
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
National Electrical & Medical Imaging Equipment Manufacturers 1300 North 17th Street, Suite 1847, Rosslyn, Virginia 22209, USA Tel.: 001 703 841 3200 Fax: 001 703 841 5900 http://www.nema.org International Electronics Manufacturing Initiative 2214 Rock Hill Road, Suite 110, Herndon, VA 20170-4214, USA Tel.: 001 703 834 0330 Fax: 001 703 834 2735 http://www.nemi.org Society of Manufacturing Engineers One SME Drive, Dearborn, Michigan 48121, USA Tel.: 001 313 425 3000 http://www.sme.org
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APPENDIX
Global - Electronic Manufacturing Services 0199 - 2316 - 2009
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Global - Electronic Manufacturing Services 0199 - 2316 - 2009
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