While the
electrical market lasts to mature, original
equipment manufacturers (
OEM), original design manufacturer (
ODM) and
moulders confront
mounting pressure to reduce costs as struggling to achieve the optimal
balance of functionality, appearance, productivity and cost reduction. However, dangers sometimes come with chances. Up-and-coming global outsourcing tide brings hopes to contract manufacturers. In facing the changeover, they react with mingled mood, half caution and half relief.
Motors Sizzling with Growing Replacement DemandsAlthough motors fix to their traditional design
architecture, the innovation of
miniature DC drive systems never ceases as industrial players continue to combat in achieving the next level of miniaturization,
power to volume, and precision. Manufacturers work hard to customize to clients' needs by providing a wide
spectrum of custom and semi-standard options, including special bearing systems and
lubrication, special commutation and
brush systems, special
coil voltages, extended
temperature range versions, custom
lead wires connectors, and
cabling, modified shaft configurations, thru-
shafts, and
hollow shafts and modified
motor geometry. Large IEC frame motors, which consist of
frame sizes IEC80 to IEC500, account for the biggest share of market revenue and over the next few years is predicted to remain the major revenue contributor. Motor continues to be a sizzling market. According to the latest statistics from IMS Research, the low voltage segment of this market in Europe, the Middle East and Africa (EMEA) is expected to reach $1.7 billion. A crucial factor that contributes to this market's overall robustness is the high proportion of motors that are made each year for replacement.
Battery Powered up 6.6% through 2008It is predicted that world demand for primary and secondary
batteries will climb 6.6% percent per year through 2008 to $65 billion. The growth momentum mainly comes from some developing regions such as Africa and the Mid-East, Eastern Europe, Latin America and Asia/Pacific, boosted by regional robust economic growth. Especially, China, Argentina, India, Iran, South Korea and the Ukraine will play the crucial roles too grab the best gains. The markets in industrialized countries like U.S. EU and Japan will also benefited from higher income levels, which result in mounting sales and use of many
battery-powered products.
In the past decade years, there were several new batteries launched such as
nickel-metal hydride, secondary
lithium,
zinc-air designs,
rechargeable alkaline and lithium-ion, widely applied in
portable computers and portable
cordless hand tools. First developed in the 1960s and commercialized in 1970s, lithium batteries now have six lithium battery types, approximately 30 commercialized
electrode couples, and over thousand specific designs. The new generation of lithium batteries has large scale of sizes available from king-size cells used for powering
vehicles or
storing significant amounts of
utility power to queen-size cells capable of powering micro-electromechanical
gears. The lithium battery technology takes the place of once-popular alkaline batteries and NiCad batteries and some tentative uses of NiMH batteries because of its inherent higher
energy density,
compact and longer operational time to meet the demands of next-generation portable
electronics.
The sales of consumer-orient battery will outpace other market segments, spurred by soaring demand for products used to power high-drain portable electronic devices. The demands of non-lead-acid secondary batteries tend to outpace that for primary and lead-acid secondary types through 2008, fueled by the popularity of multifunction handheld devices with reduced recharging time. Lead-acid batteries keep gaining market in terms of value thanks to stronger growth in automotive output as the uses rise from the population of some applications like backup power supplies and industrial motive power.
Relays & Switches Get MinimizedRelays and
switches continue to get minimized as jog switches and joy sticks are
shrinking in size in offering more sophisticated user interface with
cell phones,
PDA's, and other consumer electronics. The trend toward smaller loads, voltage, and amperage signal a more significant design challenge to switch and relay manufacturers than minimizing their physical size. Two of the prime drivers heading to smaller loads are portable, rechargeable devices and the nearly ubiquitous. Switch sales improved 17% in the first half of 2004 and soared largely in Q2 2004 as compared to the same period of last year, yet the market has declined in Q3 and predicted to further slow down in 2005. Still the switch market should still outperform the overall economy in 2005.
OEM & ODM Booming with Globalization OutsourcingIt's difficult to find any company that completely manufactures its own products as most manufacturers in Europe and the United States make use of
outsourcing to lower overall product cost. In response to changing global economic climate, world major players focus on giving the OEM greater
flexibility, improved cost effectiveness, reduced
cycle time, reduced time to market, and sustained or higher quality. In this case, outsourcing must be a valuable component of manufacturing strategies. Especially when demand is stable, inventory-holding costs low and labor a high proportion of total costs--overseas production in low-wage countries is a very attractive idea. In addition, when in changing economic situation, outsourcing can minimize the
risk of dramatic change on business circle. Industry players could free themselves to spotlight on their core competencies and tighten
R&D capability.The original design manufacturers (ODMs) market grows stronger than OEMs (original equipment manufacturer) thanks to they will diversify their product offerings to their OEMs customers. ODMs also tends to outpace the electronics manufacturing services (EMS) market by about 11.5% annually and climb from about $40 billion in 2003 to $101 billion in 2008 while ODMs expand globally by adding product offerings and strengthening their design capabilities. Nevertheless, the EMS market will keep growing while its sales increase from about $92 billion in 2003 to more than $160 billion in 2008.
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