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Aerospace and Defense Industry Provides Opportunities for EMS Provider Market

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Aerospace and Defense Industry Provides Opportunities for EMS Provider Market

Mumbai, Maharashtra, India

As aerospace and defense (A&D) and original equipment manufacturers (OEMs) struggle to increase revenue, boost profit and zealously retain their market share, they are increasingly relying on electronics manufacturing services (EMS) providers to achieve operational excellence. Operational excellence is the key to success as it encompasses the key ingredients to achieve the desired market leadership such as customer satisfaction through differentiating and innovative products. Therefore, A&D industry has proved to be replete with opportunities for EMS providers.

New analysis from Frost & Sullivan (www.AESU.frost.com), Growth Opportunities in the North American Aerospace & Defense EMS Provider Markets, reveals that the market earned revenues of $3.83 billion in 2005 and estimates to reach $6.72 billion in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the North American Aerospace & Defense EMS Provider Market, then send an e-mail to Ravinder Kaur / Nimisha Iyer, Corporate Communications, at ravinder.kaur@frost.com / niyer@frost.com with your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"The A&D landscape is constantly evolving and as budget constraints rise, OEMs will aim to increase competitiveness by forging strategic alliances with EMS providers," says Frost & Sullivan Research Analyst Lavanya Ram Mohan. "EMS providers deliver competitive advantage to OEMs by letting them exploit EMS expertise in offering unrivaled manufacturing capabilities, design and test services, engineering capabilities, supply chain operations and aftermarket services."

The A&D industry, which until now was fazed with demands for creating network centric warfare, is currently undergoing a paradigm shift. Though the ultimate focus will be on network-centric warfare, the current demands of real time communication are gaining importance. Moreover, the need for technology innovation and R&D is greater in the A&D industry. The allocation of a significant 15 percent from the total budget specifically for R&D purposes has created opportunities for large spillovers to EMS providers.

Due to numerous EMS providers, competition is rampant. As OEMs enjoy very high purchasing power, they have the advantage of choosing the best-fit EMS provider. OEMs prefer to work with the same EMS provider, making penetration for potential providers more strenuous. Moreover, OEMs prefer to choose an EMS provider that has had a positive record in the A&D industry.

"A significant number of OEMs prefer to retain some of their design and manufacturing capabilities, along with the A&D market being highly regulated," explains Lavanya Ram Mohan. "As a result, EMS penetration within the A& industry proves to be a daunting task and in addition, EMS providers wanting to compete need to garner and nurture trust."

This scenario however is likely to undergo a major transformation. OEMs are reaching a threshold where competition based on competitive price and faster time to market will require outsourcing. Given the high loyalty within the A&D industry, EMS providers can benefit if they are successful in developing long partnerships with their OEMs.

The Growth Opportunities in the North American Aerospace & Defense EMS Provider Markets, part of the E&S Subscription Growth Partnership Service, provides an overview of EMS opportunities within the Aerospace & Defense segment, along with revenue forecasts, analysis of key drivers and restraints, impacts of major industry challenges, competitive analysis, and various trends affecting growth opportunities. The study also contains a competitive roadmap of EMS providers along with analysis of mergers and acquisition trends. In this analysis, Frost & Sullivan's expert analysts thoroughly examine the following markets: aerospace - both military and commercial - and defense industry. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

Growth Opportunities in the North American Aerospace & Defense EMS Provider Markets
F850-28

Ravinder Kaur, Corporate Communications - South Asia, Middle East, Frost & Sullivan, + 91 (044) 4204 4515 ravinder.kaur@frost.com

Nimisha Iyer, Corporate Communications - South Asia & Middle East, Frost & Sullivan, + 91 (022) 4001 3400 niyer@frost.com

Source: Frost & Sullivan (Business Wire India)

Press release presented here is sourced from the Source mentioned above and is provided on as-is basis. Please contact the Company / Source directly for any further information in regard to this release. This website will be unable to assist you in regard to the accuracy or correctness of information in this release.

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