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The global impact of Coronavirus on manufacturing.

2/20/2020

 
A recent article published by Production Engineering Solutions magazine (PES Media @ukmfgnews) issued a warning to Supply Chain professionals spotlighting some near-term impact of the Coronavirus on manufacturing.
Manufacturers need to urgently review their supply chain to find out how exposed they are to the Coronavirus outbreak, explains Richard Wilding, professor of supply chain strategy at Cranfield School of Management explains.  (PES Media)
Citing a 50% reduction in Air Freight and increasing backlog of shipping on the Yangtze River, we are likely  just beginning to feel the initial impact on global manufacturing.   In the article published February 3, 2020, PES Media reported hearing of a car plant factory in Germany that had already been forced to close for lack of raw materials.   
HOPEWELL Companies
HOPEWELL Companies Manufacturing Services and Solutions
In a February 16, 2020  article published by @TIME, Bloomberg Economics estimates China's economy is running at just 40-50% capacity.    It could take months before a full recovery is made (back to full production levels).
 A survey of 109 American manufacturing companies in and around Shanghai showed that although almost 70% were operating last week and more than 90% expected to be back by this week, 78% of firms said they didn’t have sufficient staff to run a full production line. (TIME)
If your Supply Chain is overly dependent on on materials (including electronic components or electronic manufacturing services) originating in China, perhaps now is a good time to reconsider US manufacturing.   

​Even before the Coronavirus outbreak, Material Handling & Logistics (@MHLeditor) reported results of a 2019 study revealing increasing motivation to reshore or at minimum maintain second sources within the USA to minimize risks to the Supply Chain.
​A growing number of businesses are rethinking their global manufacturing strategies. Due to rising foreign wages, rising tariffs on steel, aluminum, and electric components, and reconsiderations of the total cost of ownership, The Reshoring Institute predicts that companies will increasingly be motivated to participate in reshoring efforts in the coming years.
Here are some highlights from the study:
• More than half of the executives surveyed reported that they were planning or considering reshoring activities in the next five years.
• 97% said that they would consider a domestic source for parts if the price and quality were competitive to foreign suppliers.
• In addition to the growing attractiveness of U.S. markets, the unpredictability of tariffs and trade regulations leave companies conducting international business wary of unexpected cost increases.
• The survey found that from 2017 to 2018, the number of companies operating in multiple global locations decreased by 10%.       (MH&L)
There will always be a need for global sourcing. 

​But global sourcing isn't always the best solution, nor is it necessarily the most cost effective solution.
HOPEWELL Companies Manufacturing Services and Solutions
It would be foolishness to speculate the full impact of the Coronavirus on electronics manufacturing.  Will Distributors like Arrow, Avnet and TTI begin to report material shortages of electronic components (microcircuits, discrete devices, semiconductors) as current inventories are depleted and compounding impact of factory shut downs pushes out delivery schedules?  Which geographical regions and market segments of China's manufacturing capacities will be the first to be "back online" and therefore have shortest backlog to work through to catch up?  Which will be the last and therefore have the longest backlog to work through to catch up?   

​OEM's, EMS, and manufacturers from all industries are eager for answers.
HOPEWELL Companies Manufacturing Services and Solutions
 HOPEWELL COMPANIES provides experienced representation of test and manufacturing services and solutions.

With a highly specialized background including more than 20 years in electronic manufacturing and engineering services, HOPEWELL COMPANIES brings empowerment and value to our clients through:
  • consultation and experienced interpretation of complex Scopes of Work to space, avionics, military, and commercial regulatory standards;
  • timely identification of Principals able to satisfy client requirements for quality, performance, budget and delivery;
  • expansive network of subject matter experts and consultants;
  • assistance beyond the sale, to include ongoing program oversight.

For more information regarding the engineering, test, and manufacturing capabilities of our Principals, please visit our website.
 
#HOPEWELLCompanies #manufacturing #contractmanufacturing #supplychainmanagement #qualitymanagement #customersatisfaction #EMS #USmanufacturing #Electronics #Design #ProductDevelopment #NewProductDesign #Engineering #PCB #PCBassembly #repair #CNCmachining #milling #turning #EDM #machining #3Dprinting #metalprinting #thermoforming #additivemanufacturing #ITAR #VOSB #WOSB #SDB

Electrical Failures and ECN's- reworking PCB's

2/6/2020

 
I've had a fun career - working many aspects of electronic manufacturing including:  IC assembly, PCB assembly, contract manufacturing, and many many years involved in reliability testing (ranging from microcircuit through system level testing).  And I've seen a lot of rejects, at all levels of the product life cycle.
* Quality rejects (manufacturing related)
* Performance rejects (design related)
* Component rejects (counterfeit or compromised components)
Not surprisingly, some of the most common areas of electronic failure as identified during root-cause analysis are:

* Capacitors
* Printed Circuit Boards
* PEMs
* Interconnects and Solder Joints
And with these failures ... there are costs!

                                          Costs to the Manufacturer
                                                                           Costs to the Customer
HOPEWELL Companies Manufacturing Services and Solutions
HOPEWELL Companies Manufacturing Services and Solutions
The SMTA provides a tremendous resource pool regarding Root-Cause Failure Analysis of Electronics for electronics manufacturing professionals.  In addition, HOPEWELL Companies and Principals are readily available to provide independent testing, analysis, and repair services (including ECN/rework) for printed circuit board assemblies.
HOPEWELL Companies Manufacturing Services and Solutions

HOPEWELL Companies Manufacturing Services and Solutions
​HOPEWELL COMPANIES provides experienced representation of test and manufacturing services and solutions.

With a highly specialized background including more than 20 years in electronic manufacturing and engineering services, HOPEWELL COMPANIES brings empowerment and value to our clients through:
  • consultation and experienced interpretation of complex Scopes of Work to space, avionics, military, and commercial regulatory standards;
  • timely identification of Principals able to satisfy client requirements for quality, performance, budget and delivery;
  • expansive network of subject matter experts and consultants;
  • assistance beyond the sale, to include ongoing program oversight.

For more information regarding the engineering, test, and manufacturing capabilities of our Principals, please visit our website.
 
#HOPEWELLCompanies #manufacturing #contractmanufacturing #supplychainmanagement #qualitymanagement #customersatisfaction #EMS #USmanufacturing #Electronics #Design #ProductDevelopment #NewProductDesign #Engineering #PCB #PCBassembly #repair #CNCmachining #milling #turning #EDM #machining #3Dprinting #metalprinting #thermoforming #additivemanufacturing #ITAR #VOSB #WOSB #SDB

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  • HOPEWELL
    • Capabilities
    • Principals and Partners >
      • Advanced Metal Solutions
      • Altek Electronics
      • Decker Machine Works
      • Northeast Quality Service
      • RapidMade
      • Orange Packaging
      • And More
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