CM growth slides

The Economic TimesThe global Contract Manufacturing (CM) industry, comprising Electronics Manufacturing Services and Original Design Manufacturing (ODM) providers, is set to expand to $432.3 billions by 2012, increasing at a CAGR of 7.2% from $305.5 billions in 2007. While a $126.8 billion gain in revenue in a five- year period may sound like fantastic growth, it actually represents a slowdown compared to years past. Global CM revenue rose at a CAGR of 15.5% from 2002 to 2007. The industry CAGR amounted to 49% in the 1990s. Now the CM industry is undergoing a period of deceleration and consolidation. This will transform the market by 2013 as competitors are forced to rethink how they deliver value to their customers, according to iSuppli, an industry market intelligence provider.