In today’s global environment, electronic manufacturing can be accomplished in all sectors of the globe. The challenge is to match the product characteristics to the manufacturing location. For most products, the prototype and initial production is accomplished with a domestic electronic manufacturing services (EMS) source. If the volume warrants, the configuration is stabilized and the market forecast is well defined, products can be moved to an offshore location to gain the additional benefits of lower cost. The challenge is that often this offshore move is made too soon, or the underlying assumptions are not well defined and the offshore move actual costs more, may result is increased working capital for inventory and potentially lost sales or customers, all unintended consequences.
Summit/ems has an answer to this global manufacturing dilemma such that the product can be manufactured is the most economical location taking into consideration all procurement cost.
Domestic Electronic Manufacturing – Logansport Indiana
The manufacturing of prototypes, pilot production and follow on production up to the 25,000 pieces per year are accomplished in the Summit/ems facility in Logansport, Indiana. This allows the design to be validated, the product market demand better understood and the initial product fill rate to be near 100% without maintaining excess inventory by our customers. Many products will stay domestically produced for the total product life. However, with escalating volume and extended product life, some products benefit from offshore manufacturing. When this occurs, Summit/ems has a proven transition approach that absolutely minimizes this transition risk.
International Partnerships – Canada & China
Summit/ems has partnered with Etratech with electronic manufacturing services (EMS) locations in Canada and China. If it is deemed desirable to move a product to offshore manufacturing, Summit/ems will manage this transition for the customer, imparting all knowledge gained at Summit during the design, prototyping and limited rate production. The engagement of Summit/ems will remain until First Article units are received and approved by our customer. Summit/ems can also continue on as a project manager if requested. In this way, the “offshore learning curve” is not created and the communications are manufacturer to manufacturer in this critical transition period.
Reshoring Electronic Manufacturing – Correcting excessive optimism
Often electronic products are moved to an offshore location ahead of the validation of a solid product configuration, well defined demand and demonstrated annual quantities. Correcting this error and bringing product back for domestic electronic manufacturing is called Reshoring for electronic products. As a domestic electronic manufacturer, Summit/ems is well positioned to quote the transition products back.