EMS Now: Trends to Watch in 2025

The article "EMS Trends to Watch in 2025" from EMSNOW explores key challenges and trends within the EMS industry for 2025, building upon the difficulties faced in 2024. Key points include:

1. Demand Uncertainty: EMS companies must carefully navigate market predictions, particularly in sectors like medical, automotive, and defense, as growth is difficult to forecast.
2. Inventory Visibility: Following pandemic-driven disruptions, EMS companies are struggling with high levels of inventory and need better forecasting data to manage component acquisitions effectively.
3. Workforce Challenges: The rise in labor costs in low-cost regions is making workforce recruitment and retention difficult, especially with lower demand leading to fewer hours.
4. Automation: More investment is being made in automating repetitive tasks in the manufacturing process, though high-mix, low-volume manufacturing continues to face challenges.
5. Reshoring/Regionalization: The industry anticipates a continued shift toward localizing manufacturing due to geopolitical issues, with countries aiming for the "China Plus One" strategy.
6. Regional Manufacturing Ecosystem: Rebuilding the regional electronics supply chain, including PCBs, will be crucial for future stability and security in the industry.
7. Macroeconomic Factors: Global tensions and economic shifts may impact the EMS market, with expected growth slowing until late 2025.

While 2025 may not be as challenging as 2024, the industry will need to adjust to these trends for sustained growth.