MANHASSET, NY -- Electronics manufacturing operations with a total value of at least $2.5 billion are expected to be brought to North America in the next three years with companies citing quality control as the primary reason for bringing operations back from overseas.
A study by industry association IPC indicates that on-shoring, North American manufacturers returning overseas operations to North America or building new operations in the region, continues to rise.
The study is based on a May 2012 survey of 229 companies with global revenues totaling more than $935.3 billion. One-quarter of operations that returned to North American since 2009 came from China, with other countries making up the other 75 percent.
Survey results showed that OEMs were largely responsible for operations returning to North America from overseas since 2009, accounting for more than 90 percent of the value and number of jobs brought back. The electronics manufacturing services (EMS) industry accounts for the largest share of overseas operations that participating companies plan to bring back to North America in the next three years.
OEMs’ new operations are a much larger share of future North American production than those by EMS.
Besides quality control being closer to customers is the driving force for companies establishing new operations in North America, the survey said.
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IPC has 3,100 member companies mostly in PCB design, printed board manufacturing, electronics assembly and test.