Access to power is one of the most important features these companies need.
Power availability will play a significant role in real estate design and facility selection within the electronic manufacturing services (EMS) industry, which depends heavily on reliable, high-capacity and clean power for everything from basic assembly to surface mount technology, cleanroom operations and testing.
According to a Cresa Research EMS industry report, EMS facilities typically require significantly more power than traditional industrial warehouses and distribution buildings. In addition, cleanrooms, HEPA filters, and temperature/humidity-controlled environments require strong HVAC systems and electrostatic discharge (ESD) protection systems often require constant monitoring and grounding infrastructure tied to facility power, noted the report. In-house labs can mandate dedicated circuits, redundant power systems, backup generators or uninterrupted power systems (UPS).
To appeal to EMS, properties must support a sufficient power supply from the utility, ideally with expandable capacity and in areas with stable grids and more affordable electricity. Older industrial buildings may require retrofitting, said the report.
The EMS industry was hit hard by the pandemic, with factory shutdowns, labor shortages and semiconductor scarcities. However, since 2021, the sector has rebounded strongly in response to consumer demand for automotives, medical devices and consumer electronics. The global EMS market had a value of $477 billion in 2023 and is expected to grow at a 6.2% compounded annual rate through 2031.
Both original equipment manufacturers and EMS firms began reshoring and nearshoring operations to reduce dependencies on Asia-Pacific countries, which has resulted in growth in Mexico, Eastern Europe and the United States, as well as increased investment in supply chain visibility and multi-sourcing strategies, said the report. Investment also has focused on advanced manufacturing technologies to improve efficiency, reduce downtime and make operations more agile, according to Cresa.
Read the full article in Globe St.