EMS Industry Report 2010

INDUSTRY PROFILE
Global Electronic
Manufacturing Services
Reference Code: 0199-2316

Publication Date: March 2010
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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The global electronic manufacturing services market shrank by 13.8% in 2009 to reach a value of $160
billion.
Market value forecast
In 2014, the global electronic manufacturing services market is forecast to have a value of $222.5 billion,
an increase of 39.1% since 2009.
Market segmentation I
Computer applications is the largest segment of the global electronic manufacturing services market,
accounting for 35% of the market's total value.
Market segmentation II
Asia-Pacific accounts for 50.4% of the global electronic manufacturing services market value.
Market share
Foxconn Electronics (Hon Hai Precision Industry) is the leading player in the global electronic
manufacturing services market, generating a 26.8% share of the market's value.
Market rivalry
Fierce competition is present between players in the market because of a number of factors including
high-fixed costs and exit barriers.

CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY 2
MARKET OVERVIEW 6
Market definition 6
Research highlights 7
Market analysis 8
MARKET VALUE 9
MARKET SEGMENTATION I 10
MARKET SEGMENTATION II 11
MARKET SHARE 12
COMPETITIVE LANDSCAPE 13
LEADING COMPANIES 15
Hon Hai Precision Industry Company Limited 15
Jabil Circuit Inc 17
Celestica Inc. 21
Flextronics International Ltd. 25
MARKET FORECASTS 29
Market value forecast 29
APPENDIX 30
Methodology 30
Industry associations 31
Related Datamonitor research 31
Disclaimer 32
ABOUT DATAMONITOR 33
Premium Reports 33
Summary Reports 33
Datamonitor consulting 33

CONTENTS
LIST OF TABLES
Table 1: Global electronic manufacturing services market value: $ billion, 2005–09 9
Table 2: Global electronic manufacturing services market segmentation I:% share, by value,
2009 10
Table 3: Global electronic manufacturing services market segmentation II: % share, by value,
2009 11
Table 4: Global electronic manufacturing services market share: % share, by value, 2009 12
Table 5: Hon Hai Precision Industry Company Limited: key facts 15
Table 6: Jabil Circuit Inc: key facts 17

Table 7: Jabil Circuit Inc: key financials ($) 19
Table 8: Jabil Circuit Inc: key financial ratios 19
Table 9: Celestica Inc.: key facts 21
Table 10: Celestica Inc.: key financials ($) 23
Table 11: Celestica Inc.: key financial ratios 23
Table 12: Flextronics International Ltd.: key facts 25
Table 13: Flextronics International Ltd.: key financials ($) 27
Table 14: Flextronics International Ltd.: key financial ratios 27
Table 15: Global electronic manufacturing services market value forecast: $ billion, 2009–14 29

CONTENTS
LIST OF FIGURES
Figure 1: Global electronic manufacturing services market value: $ billion, 2005–09 9
Figure 2: Global electronic manufacturing services market segmentation I:% share, by value,
2009 10
Figure 3: Global electronic manufacturing services market segmentation II: % share, by value,
2009 11
Figure 4: Global electronic manufacturing services market share: % share, by value, 2009 12
Figure 5: Jabil Circuit Inc: revenues & profitability 20
Figure 6: Jabil Circuit Inc: assets & liabilities 20

Figure 7: Celestica Inc.: revenues & profitability 24
Figure 8: Celestica Inc.: assets & liabilities 24
Figure 9: Flextronics International Ltd.: revenues & profitability 28
Figure 10: Flextronics International Ltd.: assets & liabilities 28
Figure 11: Global electronic manufacturing services market value forecast: $ billion, 2009–14 29

MARKET OVERVIEW
MARKET OVERVIEW
Market definition
For the purpose of this profile, the global electronic manufacturing services market consists of companies
that manufacture electronic equipment mainly for OEMs (Original Equipment Manufacturers). The market
is valued on the basis of revenues received by the contract manufacturing companies for such contracts.
The market value does not include the Original Design Manufacturer (ODM) segment. However, some
electronic manufacturing services (EMS) companies also offer ODM services, and their market share may
include ODM revenues. The regional segmentation is based on the geographical site of the EMS
company headquarters. All currency conversions are calculated using constant average annual 2009
exchange rates.
For the purposes of this report, the global market consists of North America, South America, Western
Europe, Eastern Europe, and Asia-Pacific.

MARKET OVERVIEW
Research highlights
The electronic manufacturing services market generated total revenues of $160 billion in 2009,
representing a compound annual growth rate (CAGR) of 4.3% for the period spanning 2005-2009.
The computer applications segment proved the most lucrative for the electronic manufacturing services
market in 2009, generating total revenues of $56 billion, equivalent to 35% of the market's overall value.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 6.8% for the five-
year period 2009-2014, which is expected to drive the market to a value of $222.5 billion by the end of
2014.

MARKET OVERVIEW
Market analysis
After a period of strong, double-digit growth, the global electronic manufacturing services market fell into
marginal decline in 2008, which further deepened into 2009. In the forecast period, recovery is expected
in 2010 and the market is set to grow steadily, however at a lower rate.
The electronic manufacturing services market generated total revenues of $160 billion in 2009,
representing a compound annual growth rate (CAGR) of 4.3% for the period spanning 2005-2009. In
comparison, the Americas and Asia-Pacific markets respectively comprise 20.9% and 50.4% of the global
market, reaching respective values of $33.4 billion and $80.6 billion in 2009.
The computer applications segment proved the most lucrative for the electronic manufacturing services
market in 2009, generating total revenues of $56 billion, equivalent to 35% of the market's overall value.
In comparison, the communications equipment segment generated revenues of $43.2 billion in 2009,
equating to 27% of the market's aggregate revenues.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 6.8% for the five-
year period 2009-2014, which is expected to drive the market to a value of $222.5 billion by the end of
2014.

MARKET VALUE
MARKET VALUE
The global electronic manufacturing services market shrank by 13.8% in 2009 to reach a value of $160
billion.
The compound annual growth rate of the market in the period 2005–09 was 4.3%.
Table 1: Global electronic manufacturing services market value: $ billion, 2005–09
Year $ billion € billion % Growth

2005 135.2 97.2
2006 159.0 114.3 17.6%
2007 186.0 133.8 17.0%
2008 185.6 133.5 (0.2%)
2009 160.0 115.1 (13.8%)
CAGR: 2005–09 4.3%
Source: Datamonitor DATAMONITOR
Figure 1: Global electronic manufacturing services market value: $ billion, 2005–09

MARKET SEGMENTATION I
MARKET SEGMENTATION I
Computer applications is the largest segment of the global electronic manufacturing services market,
accounting for 35% of the market's total value.
The Communications segment accounts for a further 27% of the market.
Table 2: Global electronic manufacturing services market segmentation I:% share, by value,
2009
Category % Share
Computer applications 35.0%
Communications 27.0%
Consumer, Industrial, Medical, Aerospace 23.0%
Other 15.0%
Total 100%
Figure 2: Global electronic manufacturing services market segmentation I:% share, by value,
2009

MARKET SEGMENTATION II
MARKET SEGMENTATION II
Asia-Pacific accounts for 50.4% of the global electronic manufacturing services market value.
The Americas accounts for a further 20.9% of the global market.
Table 3: Global electronic manufacturing services market segmentation II: % share, by value,
2009
Category % Share
Asia-Pacific 50.4%
Americas 20.9%
Europe 16.9%
Rest of the World 11.9%
Total 100%
Figure 3: Global electronic manufacturing services market segmentation II: % share, by value,
2009

MARKET SHARE
MARKET SHARE
Foxconn Electronics (Hon Hai Precision Industry) is the leading player in the global electronic
manufacturing services market, generating a 26.8% share of the market's value.
Flextronics International Ltd. accounts for a further 14.8% of the market.
Table 4: Global electronic manufacturing services market share: % share, by value, 2009
Company % Share
Foxconn Electronics (Hon Hai Precision Industry) 26.8%
Flextronics International Ltd. 14.8%
Jabil Circuit 7.3%
Celestica 3.8%
Other 47.3%
Total 100%
Figure 4: Global electronic manufacturing services market share: % share, by value, 2009

COMPETITIVE LANDSCAPE
The electronic manufacturing services market will be analyzed taking manufacturers of electronic
equipment (including industrial automation and control equipment as well as test and measurement
equipment) as players. The key buyers will be taken as companies operating in a diverse range of
equipment manufacturing such as healthcare, automotive and consumer electronics, and manufacturers
of raw materials (steel, copper, aluminum, mineral oil and various plastics), fabricated products and
electronic components as the key suppliers.
Fierce competition is present between players in the market because of a number of factors including
high-fixed costs and exit barriers.
The vast majority of market players are involved in supplying original equipment manufacture (OEM)
manufacturing electronic products on a contract basis for the OEM market of computer and electronics
companies. Market players are generally reliant on the growth and condition of their buyers' businesses,
and are often dependent on a small number of large customers. However, market players are often
vertically integrated companies that design and manufacture products and offer after-sales service.
Consequently, contracts are often long-term, which can result in switching costs for buyers. Inputs to the
sector are varied and can usually be sourced from a range of suppliers. However, for certain specialized
components, market players will often rely on a sole supplier. The loss of such a supplier can have an
adverse effect on the market players' business and thus strengthens supplier power. The likelihood of
new entrants to the market is highly dependent on technological capability and having the means to invest
heavily in research and development. Recent decline in the market serves to further dissuade new
entrants and increase rivalry amongst incumbents.
Many buyers in this market are large multinational companies who have powers to negotiate and exert
downward pricing pressure on market players. However, market players are often vertically integrated
companies that design and manufacture products and offer after-sales service, which diminishes buyer
power. Buyers often enter into contracts with manufacturers (some of which last several years), which can
result in switching costs. Such contracts usually require a buyer to take minimum quantities per year or
pay a penalty. Contracts such as these, while weakening buyer power, also ensure that customers are
assured an adequate supply. Products manufactured by market players are often indispensable to the
business of their buyers, which reduces buyer power even further. In some cases, electronic equipment is
made to order, in which case buyer power is weaker. However, numerous products in the market are
commoditized and highly undifferentiated. Overall, buyer power in this market is assessed as moderate.
Inputs to this market include a wide variety of components, assemblies, software and raw materials. Many
market players use a wide variety of suppliers to reduce dependence on any one supplier, thus
weakening supplier power. However, players are generally dependent on one or a limited number of
suppliers for some particular components. Consequently, if any such suppliers were to cancel or
materially change contracts or fail to meet the quality or delivery requirements needed to satisfy customer
orders for products, market players could lose customer orders. As a result, players would be unable to

develop or sell certain products cost-effectively or on a timely basis, if at all, and have significantly
decreased revenues and earnings. This, in turn, would have an adverse effect on business, results of
operations and financial condition. Such suppliers have disproportionately high supplier power. A number
of market players attempt to address potential disruption in the supply chain through techniques such as
qualifying multiple sources of supply, and redesigning products to use alternative components. Such
tactics effectively reduce supplier power. To reduce manufacturing costs further, companies are backward
integrating into technologies that complement their manufacturing processes. Supplier power is assessed
as moderate in this market overall.
Market players are generally large, multinational, vertically integrated companies. Such companies benefit
from economies of scale in manufacturing, logistics and procurement. Furthermore, companies require
market-focused expertise and capabilities in design and engineering, raising barriers to entry for potential
new companies. Market players must anticipate trends that impact their customers' businesses, and
improve their market positioning by effectively adjusting product plans and roadmaps to deliver low-cost,
high quality products. Consequently, companies need to invest heavily in R&D to maintain their market
share. This can pose a further barrier to entry. The environment of this market is fast-paced; companies
need to remain ahead of technological advancements to be successful. Supplying an industry that is
hugely driven by innovation, it is important for market players to focus upon emergent technologies in
order to ensure their future prosperity and market shares. Gaining a competitive advantage within this
market requires numerous patent and other intellectual property rights. Whilst overall growth in the market
has been good in the past few years, recent declines in 2008 and 2009 makes entrance more difficult and
dissuades potential new companies. Overall, the likelihood of new entrants to this market is assessed as
moderate.
Substitutes for the service offered by players in this market are hard to find. Companies are generally
vertically integrated; they design, manufacture and deliver products as well as offering an after-sales
service. A possible alternative for companies in the OEM market is to reduce reliance on such contract
companies by carrying out such services in-house. However, this may prove to be more costly for buyers.
The threat of substitutes in this market is assessed as weak overall.
The global electronic manufacturing services market is highly concentrated and dominated by large,
multinational players. Companies operating in this market are under significant pressure due in part to
their reliance upon the operations of OEMs. Fierce competition is present between players in the market
because of a number of factors, including high-fixed costs and exit barriers. In recent years the declining
market growth has intensified the rivalry in this market. As OEMs struggle with escalating manufacturing
costs caused in part by increasing crude oil prices combined with intense price competition, they are
increasingly outsourcing parts of their manufacturing processes. As a result, the electronic manufacturing
services market is developing, especially within Asia-Pacific region, where low labor costs keep R&D and
manufacturing costs low and allow companies to offer competitive prices. This serves to alleviate rivalry to
an extent, which is assessed as strong overall.

LEADING COMPANIES
LEADING COMPANIES
Hon Hai Precision Industry Company Limited
Table 5: Hon Hai Precision Industry Company Limited: key facts
Head office: 2 Zihyou Street, Tucheng City, Taipei County, TWN

Telephone: 886 2 2268 3466
Fax: 886 2 2268 6204
Website: www.foxconn.com.tw
Financial year-end: December
Ticker: 2317
Stock exchange: Taipei
Source: company website DATAMONITOR
Hon Hai Precision Industry Company (Hon Hai) is a Taiwan-based manufacturer of connectors and cable
assemblies. It is one of the largest manufacturers of connectors and cable assemblies in the world.
Foxconn is the registered trade name of the company. Hon Hai has distribution centers across many
cities in Asia, Europe, and Americas. The company's principal manufacturing operations are based in
Taiwan and mainland China, with additional production facilities in Europe and the US. It is headquartered
in Taipei, Taiwan, and employs about 200,000 people.
The company provides its products under three categories: electronic parts and components, modules,
and assembled electronic products.
Electronic parts and components include connectors and cable assemblies. The company produces
connectors and cable assemblies for the computer, automobile, communications, consumer products,
medical, and defense industries. It specializes in manufacturing products for PCs and PC servers and
peripherals.
The PC enclosures business provides casing that can be sold together with floppy disk drives, switching
power supplies, connectors, cable assemblies, and riser cards. It also provides integrated mechanical
solutions for customers' thermal, acoustic, environmental, mechanical, functional, and design problems.
Hon Hai's mold making and tooling business involves the production of the dies and molds required for its
manufacturing operations. Production of these dies and molds takes place in mainland China and Taiwan.
The company also offers modules, including mechanic modules and electronic modules. It also provides
assembled electronic products. In addition, the company is engaged in Original Design Manufacturing

LEADING COMPANIES
(ODM). It produces notebook computers, games consoles, and other electronic devices for companies
such as Apple, Cisco, Nokia, Dell and Sony.
The company also runs an e-commerce website, ascentrall.com. Hon Hai operates the website as an
accessory center to provide diverse products for desktop computers, notebooks, mobile phones, pocket
PCs, audio, consumer electronics, cameras and games.
Hon Hai also offers channel services through one of its business group, Channel Innovation & Service
Group (CISG). CISG provides channel solutions to customers around the globe. In addition to providing
reliable, high-quality products to all its customers, CISG enables a vast range of PC assemblers, retailers
and end-users the freedom to create their own computing solutions.
Key Metrics
The company recorded revenues of TWD1,420.6 billion (approximately $42.9 billion) in the fiscal year
ending December 2009, a decrease of 3.6% compared to fiscal 2008. Further financial information is
unavailable.

LEADING COMPANIES
Jabil Circuit Inc
Table 6: Jabil Circuit Inc: key facts
Head office: 10560 Dr. Martin Luther King Jr. Street North, St. Petersburg, Florida
33716, USA
Telephone: 1 727 577 9749
Fax: 1 727 579 8529
Website: www.jabil.com
Financial year-end: August
Ticker: JBL
Stock exchange: New York
Jabil Circuit (Jabil) is an electronics solutions company providing electronics design, production and
product management services to electronics and technology companies. The company designs and
manufactures electronic circuit board assemblies and systems for original equipment manufacturers
(OEMs) in the aerospace, automotive, computing, consumer, defense, instrumentation, medical,
networking, peripherals, storage and telecommunication industries. The company's main customers
include Cisco Systems, Hewlett-Packard, International Business Machines (IBM), Motorola, Network
Appliance, NEC, Nokia, Nokia Siemens Networks, Royal Philips Electronics, and Tellabs. The company
operates through 55 facilities in 22 countries worldwide. It is headquartered in St. Petersburg, Florida, and
employs about 61,000 people as of August 2009.
The company's business units provide services such as: integrated design and engineering; component
selection, sourcing and procurement; automated assembly; design and implementation of product testing;
parallel global production; enclosure services; systems assembly and direct order fulfillment, and
configure to order; and repair and warranty services to its manufacturing customers. Jabil conducts its
operations in facilities that are located in Austria, Belgium, Brazil, China, England, France, Germany,
Hungary, India, Ireland, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Scotland, Singapore,
Taiwan, Ukraine, Vietnam and the US.
In September, 2007, the company reorganized its manufacturing business into a consumer division and
an electronic manufacturing services (EMS) division. Based on this reorganization, Jabil currently
operates through three operating divisions, including: consumer, EMS and aftermarket services (AMS).
These divisions provide cost-effective solutions for customers by grouping business units with similar
needs together into divisions, each with full accountability for design, operations, supply chain
management and delivery.

LEADING COMPANIES
The AMS division provides warranty and repair services to customers in a broad range of industries,
including certain manufacturing customers. The company's consumer division dedicates resources
designed to meet the particular needs of the consumer products industry and focuses on cell phones and
mobile products, televisions, set-top boxes and peripheral products such as printers. The EMS division
focuses on the traditional and emerging electronic manufacturing services business sectors, including
automotive, computing, defense and aerospace, industrial, medical, networking, storage and
telecommunications businesses.
The company offers a range of value-added design services for products that it manufactures for its
customers. It offers design services, including electronic design, industrial design services, mechanical
design, computer-assisted design (CAD), product validation and product solutions.
Jabil's electronic design team provides electronic circuit design services, including application-specific
integrated circuit (ASIC) design and firmware development. These services are used to develop a range
of circuit designs for cellular telephone accessories, notebook and personal computers (PC), servers,
radio frequency (RF) products, video set-top boxes, optical communications, personal digital assistants
(PDA), communication broadband products, and automotive and consumer appliance controls.
The company's industrial design team assists in designing the look and feel of the plastic and metal
enclosures that house printed circuit board assemblies (PCBA) and systems. The company's mechanical
engineering design team offers three-dimensional (3-D) design and analysis of electronic and optical
assemblies using modeling and analytical tools.
Jabil's CAD team provides PCBA design and other related services. These services include PCBA design
services, using CAD and computer-assisted engineering (CAE) tools; PCBA design testing and
verification services; and other consulting services, which include the generation of a bill of materials,
approved vendor list and assembly equipment configuration for a particular PCBA design.
The company's product validation team provides complete product and process validation. This includes
system test, product safety, regulatory compliance and reliability. Jabil's product solutions group offers
system-based solutions to engineering problems and challenges on the design of new technologies and
concepts in specific areas. The company's design centers are located in: Vienna, Austria; Hasselt,
Belgium; Beijing, Tianjin and Shanghai, China; St. Petersburg, Florida; Jena, Germany; Tokyo, Japan;
Auburn Hills, Michigan; and Taichung and Taipei, Taiwan.
Jabil offers systems assembly, test and direct-order fulfillment services to its customers. The company's
systems assembly services extend its range of assembly activities to include assembly of higher level
sub-systems and systems incorporating multiple PCBs. In addition, Jabil provides testing services, based
on quality assurance programs developed for its customers. The company's quality assurance program
includes circuit testing under various environmental conditions. It also offers direct order fulfillment
services for the delivery of final products it assembles for its customers.

LEADING COMPANIES
The company also provides after-market services to its manufacturing customers from the strategic
logistics hub locations. It also serves the customers' products upon completion of the traditional
manufacturing and fulfillment process. The company's aftermarket service centers are located in:
Shanghai, China; Coventry, England; St. Petersburg, Florida; Szombathely, Hungary; Louisville,
Kentucky; Penang, Malaysia; Chihuahua and Reynosa, Mexico; Amsterdam, The Netherlands; Bydgozcz,
Poland; Memphis, Tennessee; and Round Rock and McAllen, Texas.
Key Metrics
The company recorded revenues of $11,685 million in the fiscal year ending August 2009, a decrease of
8.6% compared to fiscal 2008. Its net loss was $1,165 million in fiscal 2009, compared to a net income of
$134 million in the preceding year.
Table 7: Jabil Circuit Inc: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 7,524.4 10,265.4 12,290.6 12,779.7 11,684.5
Net income (loss) 231.8 164.5 73.2 133.9 (1,165.2)
Total assets 4,077.3 5,411.7 6,295.2 7,032.1 5,317.9
Total liabilities 1,942.0 3,117.2 3,843.5 4,309.0 3,875.4
Employees 40,000 49,000 61,000 61,000 61,000
Source: company filings DATAMONITOR
Table 8: Jabil Circuit Inc: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 3.1% 1.6% 0.6% 1.0% (10.0%)
Revenue growth 20.3% 36.4% 19.7% 4.0% (8.6%)
Asset growth 22.5% 32.7% 16.3% 11.7% (24.4%)
Liabilities growth 28.6% 60.5% 23.3% 12.1% (10.1%)
Debt/asset ratio 47.6% 57.6% 61.1% 61.3% 72.9%
Return on assets 6.3% 3.5% 1.3% 2.0% (18.9%)
Revenue per employee $188,110 $209,498 $201,485 $209,503 $191,550
Profit per employee $5,795 $3,357 $1,200 $2,195 ($19,102)

LEADING COMPANIES
Figure 5: Jabil Circuit Inc: revenues & profitability
Figure 6: Jabil Circuit Inc: assets & liabilities

LEADING COMPANIES
Celestica Inc.
Table 9: Celestica Inc.: key facts
Head office: 12 Concorde Place, 5th Floor, Toronto, Ontario M3C 3R8, CAN
Telephone: 1 416 448 5800
Fax: 1 416 448 4810
Website: www.celestica.com
Financial year-end: December
Ticker: CLS; TSX
Stock exchange: New York; Toronto
Celestica provides electronics manufacturing services and solutions to original equipment manufacturers
(OEMs). The company serves OEMs in the communications, computing, consumer and industrial,
aerospace and defense markets. It offers a range of services including prototyping, product assembly and
test, systems assembly, product assurance, failure analysis, warehousing and distribution, freight
management, logistics consulting, and packaging services. It operates in Asia, the Americas and Europe.
The company is headquartered in Toronto, Canada, and employs about 35,000 people as of December
2009.
Its major customers include Alcatel-Lucent, Avaya, Cisco Systems, EMC, Hewlett-Packard, IBM,
Microsoft, Motorola, NEC, Raytheon, Research in Motion and Sun Microsystems.
The company operates in one segment. It is engaged in providing end to end supply chain services,
offering a full spectrum of product design, manufacturing, order fulfillment, delivery (including reverse
logistics), after-market repair and product reclamation services.
Its design services cover the entire product lifecycle. The company uses its proprietary CoreSim
Technology to offer its solutions. It also offers Green Services, a suite of services which allow its
customers to comply with environmental legislation, including the Restriction of Hazardous Substances
(RoHS), and Waste Electrical and Electronics Equipment (WEEE) directives.
The company's range of design services include functional, collaborative, sustaining / value engineering
and total product solutions. It also has a joint venture with HCL Technologies, a design and engineering
services provider, through which they offer scalable design solutions in all key disciplines and across all
market segments. It provides design services to communications, consumer, enterprise and industry
markets.

LEADING COMPANIES
It offers a range of manufacturing services from printed circuit assembly (PCA) to complex systems
integration and configuration. Its services portfolio includes analysis of design for manufacturability and
testability; pre-production and volume production; printed circuit assembly and test; systems assembly
and test; complex systems integration; and traceability services from component level through to finished
product.
The company provides prototyping services in collaboration with OEM engineers to build early-stage
products. It provides these services at its product introduction centers, which strategically are located to
provide a quick response in the early stages of the product development lifecycle.
The product assembly and test services ensure product quality, reduce cost and improve delivery time to
customers. The systems assembly services include combining and testing a wide range of subassemblies
and components before shipping the end products to their final destination.
It provides product assurance to OEM customers. Its product assurance teams perform product life
testing and full circuit characterization to ensure that designs meet or exceed required specifications. Its
failure analysis services concentrate on identifying the root cause of product failures and determining
corrective actions. As part of the services, the products are subjected to various environmental extremes,
including temperature, humidity, vibration, voltage and rate of use. It also simulates field conditions in
failure analysis laboratories.
The company provides fully integrated logistics solutions to its customers. Its logistics offering include
warehouse and distribution, freight management, logistics consulting services, product and materials
visibility and reverse logistics. Its packaging and global fulfillment services design and test the packaging
of products for bulk shipment or single end-customer use. The after-market services include a wide range
of offerings including field failure analysis, product upgrades, repair and engineering change
management.
Key Metrics
The company recorded revenues of $6,092 million in the fiscal year ending December 2009, a decrease
of -20.7% compared to fiscal 2008. Its net income was $104 million in fiscal 2009, compared to a net loss
of -$721 million in the preceding year.

LEADING COMPANIES
Table 10: Celestica Inc.: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 8,471.0 8,811.7 8,070.4 7,678.2 6,092.2
Net income (loss) (46.8) (150.6) (13.7) (720.5) 103.5
Total assets 4,857.8 4,686.3 4,485.8 3,786.2 3,106.1
Employees 47,000 42,000 42,000 38,000 35,000
Table 11: Celestica Inc.: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin (0.6%) (1.7%) (0.2%) (9.4%) 1.7%
Revenue growth (4.2%) 4.0% (8.4%) (4.9%) (20.7%)
Asset growth (1.7%) (3.5%) (4.3%) (15.6%) (18.0%)
Liabilities growth (1.2%) 1.8% (9.4%) (2.8%) (32.7%)
Debt/asset ratio 55.6% 58.6% 55.5% 63.9% 52.5%
Return on assets (1.0%) (3.2%) (0.3%) (17.4%) 3.0%
Profit per employee ($996) ($3,586) ($326) ($18,961) $2,957

LEADING COMPANIES
Figure 7: Celestica Inc.: revenues & profitability
Figure 8: Celestica Inc.: assets & liabilities

LEADING COMPANIES
Flextronics International Ltd.
Table 12: Flextronics International Ltd.: key facts
Head office: 2 Changi South Lane, Singapore 486123, SGP

Telephone: 65 6299 8888
Fax: 65 5431 888
Website: www.flextronics.com
Financial year-end: March
Ticker: FLEX
Stock exchange: NASDAQ
Flextronics is one of the leading providers of electronics design, manufacturing and logistic services to
original equipment manufacturers (OEMs). The company offers services to different markets, including:
communications; automotive, marine and aerospace; health care; and consumer electronics. The
company primarily operates Asia. It is headquartered in Singapore City, Singapore, and employs 160,000
people as of March 2009.
The company offers its services to industry leaders including Casio, Cisco Systems, Dell Computer,
Eastman Kodak, Ericsson Telecom, Hewlett-Packard, Microsoft, Motorola, Nortel Networks, Sony-
Ericsson, Sun Microsystems and Xerox. It also provides logistics and after sales services for electronics
products. Flextronics operates a network of design, manufacturing and logistics facilities in Asia,
Americas and Europe. The company has manufacturing facilities in over 25 countries.
The company offers electronics manufacturing services (EMS) including printed circuit board and flexible
circuit fabrication; systems assembly and manufacturing; logistics; after sales services; design and
engineering services; original design manufacturing (ODM) services; and components design and
manufacturing.
The printed circuit board (PCB) and flexible circuit fabrication services of the company includes
manufacturing of high-density, multilayer and flexible printed circuit boards. The company manufactures
PCBs on a low-volume, quick-turn basis, and on a high-volume production basis. The company also
offers quick-turn prototype services, which provide small test quantities in as little as 48 hours. It has PCB
and flexible circuit fabrication service facilities in Americas, Europe and Asia.
Flextronics' systems assembly and manufacturing operations include assembly of PCBs, and systems
and subsystems using PCBs and electromechanical components. The company offers systems assembly

LEADING COMPANIES
and manufacturing services either on build-to-order or configure-to-order basis. The company's systems
assembly and manufacturing activity includes: enclosures; testing services; and materials procurement
and inventory management.
The company offers a range of custom electronic enclosures and related products and services. The
company designs, manufactures and integrates electronics packaging systems; including custom
enclosure systems; power and thermal subsystems; interconnect subsystems; and cabling and cases.
The company also provides services to assist the design of electronic packaging systems.
Testing services of the company include: computer-aided testing services for assembled PCBs, systems
and subsystems. The test services include management defect analysis, in-circuit testing and functional
testing. In addition, it also provides environmental stress tests of board and system assemblies. The
materials procurement and inventory management consist of the planning, purchasing, expediting and
warehousing of components and materials used in the manufacturing process. The company sources
custom components from third-party suppliers. The company also provides suppliers with just-in-time
delivery services.
Flextronics' logistics services offers global logistics services and turnkey supply chain solutions to its
customers. The company's worldwide logistics services include freight forwarding, warehousing/inventory
management and outbound/e-commerce solutions. In addition, the company also offers SimFlex
simulation software allowing customers to simulate, analyze and evaluate complex supply chain
scenarios, critical operating characteristics and performance metrics, and supply chain trade-offs.
Flextronics also provides a range of after-sales services, including product repair, re-manufacturing and
maintenance at repair depots, logistics and parts management, returns processing, warehousing and
engineering change management. The company provides after-sales services through a network of
operations, hubs and centers in several countries.
The company offers design and engineering services including a range of value-added design and
engineering services from contract design services (CDS) to original design manufacturing (ODM). The
company's ODM products are offered by OEM customers under their respective brand names. The
company's design and engineering services include user interface and industrial design; mechanical
engineering and tooling design; electronic system design; and PCB design.
The components design and manufacturing services include the company's components group
developing a range of products for OEMs. The components offered by the company include camera
modules, power supplies, antennas, radio frequency (RF) modules, small and medium form factor display
modules for mobile phones, MP3 players, industrial and commercial products and digital cameras.

LEADING COMPANIES
Key Metrics
The company recorded revenues of $30,949 million in the fiscal year ending March 2009, an increase of
12.3% compared to fiscal 2008. Its net loss was $6,086 million in fiscal 2009, compared to a net loss of
$639 million in the preceding year.
Table 13: Flextronics International Ltd.: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 15,730.7 15,288.0 18,853.7 27,558.1 30,948.6
Net income (loss) 339.9 141.2 508.6 (639.4) (6,086.1)
Total assets 11,009.8 10,958.4 12,341.4 19,524.9 11,317.5
Employees 92,000 99,000 116,000 162,000 160,000
Table 14: Flextronics International Ltd.: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 2.2% 0.9% 2.7% (2.3%) (19.7%)
Revenue growth 8.6% (2.8%) 23.3% 46.2% 12.3%
Asset growth 14.9% (0.5%) 12.6% 58.2% (42.0%)
Liabilities growth 10.9% (9.4%) 17.6% 84.3% (16.5%)
Debt/asset ratio 52.6% 47.9% 50.0% 58.2% 83.8%
Return on assets 3.3% 1.3% 4.4% (4.0%) (39.5%)
Profit per employee $3,695 $1,426 $4,384 ($3,947) ($38,038)

LEADING COMPANIES
Figure 9: Flextronics International Ltd.: revenues & profitability
Figure 10: Flextronics International Ltd.: assets & liabilities

MARKET FORECASTS
MARKET FORECASTS
Market value forecast
In 2014, the global electronic manufacturing services market is forecast to have a value of $222.5 billion,
an increase of 39.1% since 2009.
The compound annual growth rate of the market in the period 2009–14 is predicted to be 6.8%.
Table 15: Global electronic manufacturing services market value forecast: $ billion, 2009–14
Year $ billion € billion % Growth

2009 160.0 115.1 (13.8%)
2010 168.3 121.1 5.2%
2011 178.7 128.5 6.1%
2012 191.3 137.6 7.1%
2013 206.7 148.6 8.0%
2014 222.5 160.0 7.7%
CAGR: 2009–14 6.8%
Figure 11: Global electronic manufacturing services market value forecast: $ billion, 2009–14

APPENDIX
APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,
analyzed, cross-checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys
and supported by analysis from industry experts using highly complex modeling & forecasting tools,
Datamonitor’s in-house databases provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst
commentary, company profiles and macroeconomic & demographic information, which enable our
researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to country. The
parameters of each definition are carefully reviewed at the start of the research process to ensure they
match the requirements of both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest
industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative
and qualitative data to be combined with related macroeconomic and demographic drivers to create
market models and forecasts, which can then be refined according to specific competitive, regulatory
and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and
up-to-date

APPENDIX
Industry associations
National Electrical & Medical Imaging Equipment Manufacturers
1300 North 17th Street, Suite 1847, Rosslyn, Virginia 22209, USA
Tel.: 001 703 841 3200
Fax: 001 703 841 5900
http://www.nema.org
International Electronics Manufacturing Initiative

2214 Rock Hill Road, Suite 110, Herndon, VA 20170-4214, USA
Tel.: 001 703 834 0330
Fax: 001 703 834 2735
http://www.nemi.org
Society of Manufacturing Engineers

One SME Drive, Dearborn, Michigan 48121, USA
Tel.: 001 313 425 3000
http://www.sme.org
Related Datamonitor research
Company Profile
Hon Hai Precision Industry Company Limited
Flextronics International Ltd.
Industry Profile
Global Electronic Equipment Manufacturers
Global Technology Distributors
Global Office Electronics

APPENDIX
Disclaimer
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Please note that the findings, conclusions and recommendations that Datamonitor delivers will be
based on information gathered in good faith from both primary and secondary sources, whose
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whatever for actions taken based on any information that may subsequently prove to be incorrect.

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INDUSTRY PROFILE

Reference Code: 0199-2316

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 1

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 2

Hon Hai Precision Industry Company Limited 15

Jabil Circuit Inc 17

Flextronics International Ltd. 25

Market value forecast 29

Related Datamonitor research 31

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

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Table 6: Jabil Circuit Inc: key facts 17

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

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Figure 6: Jabil Circuit Inc: assets & liabilities 20

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

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Global - Electronic Manufacturing Services 0199 - 2316 - 2009

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Global - Electronic Manufacturing Services 0199 - 2316 - 2009

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Table 1: Global electronic manufacturing services market value: $ billion, 2005–09

Year $ billion € billion % Growth

CAGR: 2005–09 4.3%

Source: Datamonitor DATAMONITOR

Figure 1: Global electronic manufacturing services market value: $ billion, 2005–09

Source: Datamonitor DATAMONITOR

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 9

Source: Datamonitor DATAMONITOR

Source: Datamonitor DATAMONITOR

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 10

Source: Datamonitor DATAMONITOR

Source: Datamonitor DATAMONITOR

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 11

Source: Datamonitor DATAMONITOR

Source: Datamonitor DATAMONITOR

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 12

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

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Global - Electronic Manufacturing Services 0199 - 2316 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 14

Table 5: Hon Hai Precision Industry Company Limited: key facts

Head office: 2 Zihyou Street, Tucheng City, Taipei County, TWN

Source: company website DATAMONITOR

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 15

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 16

Jabil Circuit Inc

Table 6: Jabil Circuit Inc: key facts

Source: company website DATAMONITOR

Global - Electronic Manufacturing Services 0199 - 2316 - 2009

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Global - Electronic Manufacturing Services 0199 - 2316 - 2009