With rapid advancement in the electronics industry, the global technological landscape keeps revolving. The need to control costs continues to be a major driving force for manufacturers, with new technologies emerging in the market providing revenue opportunities but requiring manufacturers to initiate partnership with technology solutions providers and other organizations that can supply expertise outside of the company's core focus. Every trend comes along with challenges, the recent nature of electronics manufacturing trends is no exception. The primary target of electronics manufacturers is to find ways to capitalize on current trends. Their secondary priority is to control costs, integrate technologies outside of their primary areas of expertise, and meet customer demands for more efficient, eco-friendly manufacturing processes and electronics.
Electronics manufacturing industry is facing few challenges along with some opportunities as well. To catch up with competition it is indeed necessary to remain relevant and updated about recent designing trends in the electronics industry. Therefore, an electronics company needs to be both flexible and quick. Hence, to emerge as a successful company, one must be able to overcome both existing and emerging challenges in the market. Here are five of the major challenges faced by the electronics manufacturing industry.
Increasing Demand for Smart Electronics Devices:
Smartphone and smart device's market have rapidly grown for the last two decades. With each generation of updates, smart devices are getting smaller and smaller, which require electronics manufacturers to adopt advanced nanotechnology in their manufacturing process to keep up with trends.
To assemble micro components, manufacturing companies adopt micro dispensing technologies, which require a precise amount of adhesive and silicones. Shortage of such material can be proven troublesome for the manufacturing industry, which has recently occurred due to the global pandemic caused by COVID outbreak.
Sustainability:
As the awareness for being green is increasing, pressure is mounting upon manufacturers to keep coming up with new technologies and products which are more energy efficient and sustainable. Factors like carbon top and carbon exchanging have become more important than ever in green electronics manufacturing.
As climate change continues to mount, there is increasing pressure from consumers, businesses, and governments to adopt eco-friendly manufacturing solutions. Hence manufactures are required to qualify for ISO certification or similar, to boost their public image.
Short Product Life Cycle:
Economic volatility and cyclical demand altogether cause fluctuations in production. Due to ever changing trends in the electronics industry and fluctuating demands, it is incredibly difficult for electronics manufacturers to accurately predict and maintain production goals. Hence, it requires efficient lean capabilities to maintain inventory as per demand.
Complex Global Supply-chain:
More and more, companies are having to juggle internal and external resources while maintaining crucial international standards. Operational burdens are increasing due to factors such as traceability and compliance. Nowadays, it has become common practice in western countries to import electronic components or sub-components from Asian countries.
Service and Warranty Management:
Leveraging the global supply-chain is putting more focus on supplier quality management. It goes without saying that an increasing global market significantly raises efforts in maintaining after-sales service. Having a strong quality and traceability system directly impacts warranty reserve and post-production service hours.
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FAQs
What are the challenges faced in the electronics manufacturing process?
- Rapidly changing technology. ...
- Short product life cycles. ...
- Increasing competition. ...
- Price pressure. ...
- Access to raw materials. ...
- Environmental regulations. ...
- Changing consumer preferences. ...
- Economic conditions.
Table 2
| Supply-related |
|---|
| Mergers-and-acquisitions threat | Close relations with suppliers including information integration |
| 'Acts of God', war, terrorism, sanctions | Plants and suppliers in multiple locations |
| Political risk | —same— |
| Capacity risk | Flexible capacity through multi-platform lines |
17 more rowsJul 4, 2007
However, factors such as inflation, economic instability, and geopolitical disturbances have made it difficult to conduct business today. Additionally, manufacturing industry problems, such as lack of skilled personnel, supply chain issues, and digitisation and automation challenges, can slow down the sector's growth.
What are the environmental factors affecting the electronics industry? ›
The electronics industry is known for significant human rights and environmental challenges throughout its supply chain and product life cycle. Mining and processing minerals and waste erode and damage ecosystems, resulting in the pollution of water, soil, and air.
What is the biggest issue facing the tech industry today? ›
The 10 biggest issues IT faces today
- Hardening cybersecurity. ...
- Operationalizing artificial intelligence. ...
- Coping with economic pressures, uncertainty. ...
- Modernizing at a speed. ...
- Innovating meaningfully. ...
- Ensuring IT's value proposition. ...
- Driving data insights. ...
- Transforming to meet regulatory requirements.
The consumer electronics market has undergone a notable change in recent years, influenced by different factors such as evolving consumer preferences, technological advancements, and shifting market dynamics.
What is the biggest threat of technology? ›
Top 10 Threats to Information Security
- Technology with Weak Security. New technology is being released every day. ...
- Social Media Attacks. ...
- Mobile Malware. ...
- Third-party Entry. ...
- Neglecting Proper Configuration. ...
- Outdated Security Software. ...
- Social Engineering. ...
- Lack of Encryption.
Electronics Manufacturing Workflow. The primary processes used today in the production of electronics include the design and assembly of printed circuit boards, or PCBs, cable assembly, packaging, prototyping, and testing.
What are the challenges of manufacturing products? ›
There are several types of manufacturing challenges, including cost-related issues, quality control issues, and supply chain challenges. Cost-related challenges include rising material costs, labor costs, and energy costs.
How do you identify a problem in manufacturing? ›
How do you identify the root cause of a manufacturing problem?
- Define the problem.
- Collect data.
- Analyze the data.
- Test the causes.
- Implement solutions.
- Review the results.
- Here's what else to consider.
Social Disadvantages
- Poor living and working conditions.
- Exposure to hazardous conditions.
- Child labor.
- Unchecked pollution.
- Overuse of fossil fuels.
- The mechanization of farming, with questionable health benefits4.
When e-waste is warmed up, toxic chemicals are released into the air damaging the atmosphere. The damage to the atmosphere is one of the biggest environmental impacts from e-waste. When electronic waste is thrown away in landfills their toxic materials seep into groundwater, affecting both land and sea animals.
What are the negative effects of electronic component production? ›
Many toxic substances are used in electronics manufacturing, such as benzene, lead, and arsenic. When electronics are put in landfill, these materials leach out over time into soil, air, and water. Not only does this cause detrimental effects on the environment and wildlife, but it can also harm human health.
What are the impacts of electronics? ›
Privacy and security concerns have arisen with the increased use of the internet, and issues like cyberbullying and addiction have become more prominent. E-waste, a result of discarded electronic devices, is an environmental concern. In conclusion, electronic devices have had a profound impact on our lives.
How is the electronics industry changing? ›
As technology continues to advance, the electronics industry is witnessing a strategic shift, including the adoption of direct-to-consumer (D2C) and service-based business models. While executing D2C models has thus far posed challenges, digital business transformation is making D2C more scalable and cost-effective.
How is the electronics industry doing? ›
Overall, the Consumer Electronics market generated a total revenue of US$987 billion in 2022, representing a 4.4% decline from the previous year. The Consumer Electronics market is dominated by established and well-known companies, including Apple, Samsung, Huawei, and Sony.
Why are electronics hard to get? ›
The COVID-19 pandemic, increased demand for electronics, and supply chain disruptions have all contributed to the shortage, which is affecting production, innovation, and prices. The tech industry will need to find ways to overcome these challenges in order to continue to grow and meet the demands of consumers.
Why do electronics fail over time? ›
If the barrier protecting the component from the environment breaks, outside factors such as humidity and oxygen accelerate its aging and cause it to fail faster. Mechanical failure of the package results from several factors, including thermal stress, chemical cleaners, and ultraviolet light.
