NORTHBROOK, Ill. - The U.S. market for the electronics contract manufacturing industry increased 21.5 percent in 1999, to $27.4 billion, according to information released by the IPC - Association Connecting Electronics Industries from their 1999 Market for Electronics Manufacturing Services report.
The report includes 66 companies that assemble electronics on a contract basis. These companies have combined sales of $11.3 billion, representing 41 percent of the total estimated contract manufacturing market. It found computers and communications continue to be the largest markets for contract manufacturing providers, accounting for 53.4 and 26.8 percent of total 1999 sales, respectively.
"Whether through acquisitions of OEM facilities or increase in business from new or current customers, outsourcing continues to grow," says IPC Vice President of Industry Programs Tony Hilvers.
Growth in contract manufacturing revenue was evident in the 1999 projections, with the top tier (over $500 million) rising the most, 25 percent (see Table).
Survey respondents indicated that 66 percent of sales came from existing business in 1999, 23 percent came from new business and 11 percent came from new customers.
IPC predicts the U.S. electronics contract manufacturing market will continue to grow more than 20 percent annually, as it has since the late 1980s, topping $59 billion in 2003. Hilvers says product innovation and the increasing trend to outsource by OEMs are the two major factors contributing to any expected growth.
