Challenges of Electronics Components Manufacturing

The Electronic Systems Design and Manufacturing (ESDM) industry is well on its way to achieving its full potential, both in terms of production and design capabilities. For the first time in 2016-17, the production of domestic electronics exceeded the imports. There are many Asian countries that have more imports than they have exports of electronics and they deal with a lot of manufacturing around the world. Favorable trade policies for the home electronics sector have undoubtedly played their part, particularly in facilitating the setting up of manufacturing facilities for smartphones, set-top boxes, televisions, and other devices. Over the next five years, accelerated local manufacturing of electronic products to meet growing domestic demand will drive the market for electronic components.

Technology changes very rapidly. This creates challenges for those responsible for manufacturing electronic components. Electronics manufacturers need to be both flexible and fast to remain successful in today’s market. To be efficient and quick is one pro tip to sustain and survive amongst the competition in terms of electronic companies. But to survive and stand the test of time, companies need to be able to find solutions to emerging and existing challenges in the industry. These challenges are not only with electronic products. There are three basic categories or types of industry in terms of electronic industries such as semiconductors, Electronics Manufacturing Services (EMS), and Original Equipment Manufacturers (OEM). To make things easier for you to get to and understand we will only focus on one point of the industry in this article.

  • Rising demand: 
  • With the increasing demand for smartphone devices, which have now become a necessity in our lives, consumers want everything “smart”, which makes room for a wide range of PCB designs. Smart devices have given way to smaller smart devices like smartwatches, cellphones, remotes, and other fitness devices. Overall, economic instability and cyclical demand cause fluctuations in production. On a more granular level, consumer preference can lead to an increase in demand for an individual product or company. In order to have your inventory aligned you need to have efficient capabilities to lean on. 

  • The short life cycle of the product: 
  • All the devices which include all the smartwatches, fitness trackers, smartphones are part of the “trend” which is set in the electronics industry. Since consumers change their minds as often as the seasons, this can mean that a particular product may fly off the shelf a week later, with no one interested. Constantly changing trends and production fluctuations in the electronics industry can make it difficult for manufacturing companies to accurately estimate and maintain their production targets. 

  • Eco-Accommodating Procedures: 
  • Consumers are also becoming increasingly educated about environmental safety and take this into account when selecting a product or company to support. The consideration for environmental protection from businesses is as important as the consideration of an individual. Environmental change insights have prompted businesses to investigate more environmentally friendly combination solutions, especially in electronic manufacturing services. For the solutions to problems like green electronics manufacturing many things like carbon tops and carbon exchanging are being considered.

  • Sustainability: 
  • Emerging rules and standards are forcing companies to be more and more responsible for Corporate Social Responsibility (CSR) in decisions. The disposal of the products we use and their disposition has become a huge topic because of the E-waste and is popular as well as it leaves a huge impact on the environment we live in. Companies must now consider the entire product lifecycle in decisions. Electronics companies today must consider many factors when designing new products. As consumer and government agencies focus more on product disposal and its impact on the environment, companies need to consider the entire product lifecycle. 

  • Global Supply Chain: 
  • Leveraging the global supply chain is focusing more on supplier quality management. Companies often source components from many different sources. The travel distance and the final destinations of the components used are not the same as they travel through various countries before they reach their due destination. It becomes challenging for electronic manufacturers to stay aligned with national and international standards. More and more, companies have to combine internal and external resources while staying within international standards. Issues such as traceability and compliance are adding to the operational burden. Sometimes the travel route of the components can contain two to three sub-continents before reaching their decided place.

  • Margins: 
  • One of the vastest and competitive industries in the world is the electronic industry. The global competition combined with emerging innovations and technology continues to drive down prices, leading to a significant reduction in operating margins. To remain profitable, companies must continually improve processes and become more cost-efficient. Global competition and new innovations are driving down prices. The efficiency of the companies should be increasing day by day to gain more profit and remain more sustainable.

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