![]() ![]() Of the $772 billion of electronic goods sold in 2000, 13 percent were outsourced, leaving plenty of room for growth in contracting. By the end of the decade, many CEMs became involved in the designing stage, working hand in hand with OEMs to gear up for cost-effective production. Not only did such divestitures save money, OEMs now were able to concentrate on what they viewed as their core strengths: product development and marketing. An increasing number of OEMs in the 1990s sold off their manufacturing facilities to CEMs, often with long-term manufacturing agreements. In fact, many companies began to question whether doing their own manufacturing provided any real competitive advantage. Rather than a matter of necessity, OEMs now began to outsource manufacturing as a matter of policy. Furthermore, if an OEM outsourced its manufacturing, it would no longer have to worry about the costs of retooling. ![]() Because of the volume of units a CEM manufactured for multiple customers, it became cheaper for a CEM to produce a product than for an OEM. As CEMs proved they could produce quality products and deliver them in a timely fashion, the relationship between OEMs and CEMs underwent a fundamental change. Generally, OEMs had only contracted outside companies to manufacture their products when they were unable to keep up with orders. If consumer demand shifted, companies could face massive retooling costs. In the swiftly evolving world of electronics, however, the dynamics of the business changed significantly in the 1990s. Traditionally, technology companies developed products, then heavily invested in plant equipment in order to use manufacturing volume as a way to discourage rivals from entering the market. Its major customers are Lucent and EMC, which together account for a third of Benchmark's business.Ĭontract Manufacturing Gaining Momentum in the 1990s In some cases Benchmark ships products directly into the client's distribution channels or directly to the end user. With 14 manufacturing facilities in eight countries, and a vital presence in North America, South America, Europe, and Asia, Benchmark offers a full range of services to OEMs-from product design to post-production testing. As OEMs turned to contract manufacturers more and more during the 1990s, Benchmark expanded its operations, and the services it could offer, through a series of strategic acquisitions that made it one of the largest contract electronic manufacturers (CEMs) in a rapidly consolidating industry. is sold to investor group.ġ988: Company is renamed Benchmark Electronics, Inc.ġ990: Company makes initial public offering of stock.īenchmark Electronics, Inc., based in Angleton, Texas, provides electronic manufacturing services to original equipment manufacturers (OEMs) for a variety of products, including medical equipment, computers and peripherals, high-end audio and video equipment, and telecommunications products. is incorporated in Texas in 1981.ġ986: Electronics, Inc. We will accomplish this through customer satisfaction as measured by our customers' expectations for the following: world class quality, flexible manufacturing, product diversity, leading edge technology, financial strength, managerial integrity.ġ979: Company is created as Electronics, Inc., a subsidiary of Intermedics.ġ981: Electronics, Inc. is to maintain a global leadership position in the high technology electronics manufacturing services industry. The mission of Benchmark Electronics, Inc. NAIC: 334412 Bare Printed Circuit Board 421610 Electrical Apparatus and Equipment, Wiring Supplies, and Construction Material Wholesalers ![]()
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