The Electronics Manufacturing Industry in 2023

• IoT and digitalisation significance in electronic manufacturing services for the defence industry.
• Trends in the Australian EMS Industry 2023
• Current electronic manufacturing challenges in Australia

2023 has been a big year for the electronics manufacturing industry. Below we check in on how the Internet of Things (IoT) is impacting the market, the challenges we face in the electronics industry within Australia, and how we leverage upcoming technologies to adapt to the latest trends in the electronics manufacturing services industry (EMS).

The Internet of Things and Digitalisation  

IoT has shown huge market potential in the electronics manufacturing services industry. As Hetech delivers electronic manufacturing to the Defence industry, the risk of cyber-attacks and manufacturing efficiency is always at the forefront. IoT helps to identify and improve cyber security, which includes reducing counterfeit electronic components and cyber-attacks among electrical components suppliers.

To meet these requirements, the implementation of digitalisation is crucial to increasing volume and improving efficiency. That being said, cyber-security measures in sensitive processes such as PCB assembly, conformal coating, and data security is crucial for digitalisation. Both electronics manufacturing and material inventories are impacted by the rising trends in digitalisation, which aim to effectively reduce costs and emissions.

Trends seen in Australia for 2023

The popularity of reshoring electronics manufacturing services has boomed over the past few years due to the increased difficulty of electronics production by the global production leader, China. In lieu of China’s encouragement of offshoring, their production of both PCB assembly and manufacturing of semiconductors declined. The pandemic forced China’s government to implement strict ‘Zero-covid’ policies that effectively shut down many electronics production and assembly factories, resulting in Australian companies sourcing more of their electronics production and assembly domestically.

Much of 2023 saw an increased trend in domestically produced and handled electronic manufacturing services. In recent years, the Defence industry has had an increased demand for contract electronics from domestic suppliers due to advantageous delivery times, shipping costs, and better cyber-security measures. Many domestic suppliers within Australia recognise this and are continually increasing production and channels of services to meet their customer’s needs. 

Current Challenges the Australian Electronics Industry is Facing

As a result of present trends, increased production costs are due to the rising costs of labour, materials, and inflation. This has led to an increase in the baseline pricing of electronic manufacturing services. The key to providing a middle ground for both service provider and customer is to increase efficiency and streamline the production and supply of the EMS.

Supply chain difficulties are also an ever-evolving challenge the industry faces, and the growing incentive of digitalisation has helped create efficient time-saving processes to combat these issues.

The challenge of promoting sustainability is also on the agenda. With global emissions of 4%, our industry has sought ways to reduce carbon footprints by implementing sustainable and socially responsible electronics manufacturing methods. The reduction in carbon emissions via digitalisation and increased Corporate social responsibility (CSR) in multiple manufacturing processes are some of the ways we at Hetech reduce our carbon footprint.  

To find out more about how Hetech is addressing these problems and implementing solutions, contact us for more information.