The global electronics industry (EMS) is going through profound changes as regards product and process technologies, the internal organisation of companies, the interaction between companies and forms of commercialisation. This is reflected, among other things, on the distribution of design and production activities in different countries.
As has already been commented in a previous post, it is known that today the life cycles of electronic products are increasingly shorter and day by day consumers look for a wider variety of functions and lower costs.
Until a few years ago, the typical life cycle of a product launch was two years or more, where there was a first stage characterised by the design and development of the product and the first products and/or prototypes were made very close to the knowledge centres or sources.
Then at a second stage, the improved product was exported to other consumer regions or countries. And at a third stage, when the product was standardised and costs played a critical role, the manufacturing activity was relocated to countries or regions with more competitive costs.
Today, the life cycles of a product have been shortened to such a degree that they are launched in very short periods of time, down to three months depending on the project, changing all the usual business models, such as the depreciation of plants, equipment and investment in R&D.
This has led to a strong involvement in the geographical distribution of the project activities or stages. For example, today many projects have to relocate to other countries from the start of the product’s life cycle.
Companies have to face price wars, reducing costs from the design stage and rapidly capturing important market shares when the product is launched, seeking to guarantee the product’s success. This means that companies must be able to launch the product practically simultaneously on the most important markets or those with the highest chances of success. Countries close to large groups of consumers offer advantages in this respect, for example NAFTA.
Following this same model, IKOR taking advantage of its geographical location with its plant in Mexico, and in coordination with the ITC design centre in Spain, has incorporated for some years a team of engineers dedicated to offering Engineering and Development services for its clients in the NAFTA market. With this, IKOR seeks proximity and competitiveness not only in manufacturing processes, but also in Engineering services, to collaborate in this new trend of project life cycles that our clients require.