Electronic Manufacturing Services Industry Trends Impacting CRE

The Electronic Manufacturing Services (EMS) Industry Needs to Remain Nimble Due to Market Volatility and Shifting Trade Policies

The EMS industry has been going through major shifts since 2020, driven by global supply chain disruptions, reshoring efforts, rising demand for electronics, and tech innovation.

KEY TRENDS

The Covid pandemic hit the EMS sector hard, with factory shutdowns, labor shortages, and component scarcities (particularly semiconductors). However, in 2021 – 2022 there was a strong rebound, fueled by consumer demand in automotives (EVs), medical devices, and consumer electronics. In response, many OEMs (original equipment manufacturers) outsource more to EMS providers due to supply chain complexities.

Both OEM and EMS firms began reshoring and nearshoring operations to reduce dependencies on Asia-Pacific countries. As a result, there was growth in EMS activity in Mexico, Eastern Europe, and the U.S. Investment increased in supply chain visibility tools and multi-sourcing strategies. Additional investment has ben made in advanced manufacturing technologies to improve efficiency, reduce downtime, and make operations more agile. As product lifecycles shrink, EMS providers are taking on more complex, low-volume, customized production, especially in medical, aerospace, defense, and industrial sectors.

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