Electronics manufacturing operations with a total value of at least $2.5 billion are expected to be brought to North America in the next three years, according to a study by IPC – Association Connecting Electronics Industries, Bannockburn, Ill.

"On-Shoring in the Electronics Industry: Trends and Outlook for North America" indicates that on-shoring - actions by North American manufacturers to return overseas operations to North America or to build new operations in the region - has been occurring and will continue. The study is based on a May 2012 survey of 229 companies with global revenues totaling more than $935.3 billion.

Survey results showed that OEMs were largely responsible for operations returned to North America from overseas since 2009, accounting for more than 90 percent of the value and number of jobs brought back. The electronics manufacturing services industry also was a big contributor. One-quarter of operations that returned to North American since 2009 came from China, with other countries making up the other 75 percent.

The electronics manufacturing services industry, in which IPC's members are focused, accounts for the largest share of overseas operations that plan to bring back to North America in the next three years. New operations, however, represent a much larger share of future North American production, and these planned new operations were reported primarily by OEMs.

Companies cited quality control as the primary reason for bringing operations back to North America from overseas. However, being closer to customers is the driving force for companies establishing new operations in North America.

For more information or to purchase the report, visit www.ipc.org/on-shoring-2012.

Links