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    Online Exclusives

    OEMs Increasingly Choosing EMS Providers Closer to Home

    Firstronic CEO notices preference among major device firms to reshore electronics manufacturing.

    OEMs Increasingly Choosing EMS Providers Closer to Home
    The team at Firstronic’s Juarez, Mexico, facility has supported a variety of unique test requirements. Image courtesy of Firstronic.
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    Michael Barbella, Managing Editor04.23.21
    Last spring, Vexos Inc. received a federal contract to produce 10,000 mechanical ventilators for COVID-19 patients in Canada. The global electronics manufacturing services (EMS) and custom material solutions provider was part of a consortium that worked to ensure the Land of Maple Syrup had a sufficient ventilator supply for its hospitalized patients.
     
    Vexos worked with Elemaster Group and JMP Solutions to manufacture the Mechanical Ventilator Milano (MVM), an electrically operated, microprocessor-controlled, pneumatically driven machine. The project truly was a collaborative effort: Elemaster designed the ventilator, JPM Solutions made the mechanical sub-assembly, and Vexos provided the electronics (and tested the device).
     
    “We recognized the need to partner with an experienced EMS organization with strong manufacturing and supply chain presence in the medical sector, and the ability to meet U.S. and Canadian regulatory requirements,” Elemaster President/CEO Gabriele Cogliati said. “In Vexos, we have a partner that aligns with us and our goal, to provide the MVM Ventilator globally.”
     
    Such partnerships were commonplace in the pandemic’s early days as companies from all walks of life (including healthcare) turned to EMS providers for help in navigating COVID-19-induced supply chain challenges and equipment shortages. Their expertise particularly was crucial in maintaining device connectivity and meeting the skyrocketing demand for telehealth services and remote patient monitoring technology.
     
    Medical Product Outsourcing’s January/February feature, Virtual Allies, examines the key role EMS providers played in helping address the medtech industry’s quickly-changing needs. John Sammut, president and CEO of Firstronic LLC, was among the experts interviewed for the story. His full input is provided in the following Q&A.
     
    Michael Barbella: What are customers demanding of their EMS providers?
    John Sammut: The biggest thing we see is the need for speed without sacrificing quality. Our automotive industry experience has helped us develop a production ramp process that completed 800-piece validation order in less than 10 days and begin full production in less than two weeks, when a touchless thermometer manufacturer needed extra capacity due disruption elsewhere in its supply chain. We’ve done this fast ramp process on several projects now.
     
    Barbella: What qualities do OEMs look for in selecting EMS providers? How has this changed over the last five years (if at all)?
    Sammut: We are seeing two shifts. First, there is recognition that outsourcing at a distance has a higher risk than perhaps was previously recognized, and we’ve seen a definite shift to reshoring to Mexican and U.S. sourcing because of it. Second, teams are looking harder at track record. They value demonstrated performance over a good sales pitch about capabilities.
     
    Barbella: How has IoT and IoMT influenced the kinds of products and technologies EMS providers have helped develop in recent years?
    Sammut: In the medical realm, IoMT is making it possible for more remote patient monitoring. For example, we are building a sleep monitoring system that sends doctors data and enables them to make adjustment to their protocol or treatment plans. I believe this remote monitoring trend will continue to grow because it puts patients in real world settings, lowers medical costs and makes treatment more convenient for patients.
     
    Barbella: Please discuss the biggest challenges EMS providers face regarding technology in the next five years. How is your company addressing these challenges?
    Sammut: Our automotive focus drove investment in inspection and placement technology that supports most of the PCBA density-driven issues I anticipate we’ll see in industries such as medical, that are slower to add this level of complexity. We’ve also invested in Industry 4.0 technology where our machines in the SMT line communicate with each other during production, making small adjustments to process as inspection data indicates deviation from the defined process window.
     
    Barbella: How has the OEM-EMS provider relationship changed in the wake of COVID-19?
    Sammut: There has been a changing of the guard in sourcing teams over the last few years and many of those new to outsourcing got a lesson in unintended consequences of extended supply chain strategies this year. They also saw differences in creative problem-solving among their suppliers. We are seeing a definite preference for reshoring and our ability to creatively problem solve when other suppliers shut down is resulting in additional ongoing business. I think a long-term benefit of this year will be a return to sourcing teams who focus more strongly on risk analysis and understand the benefits of suppliers with processes and systems that can be adapted to a changing environment.
     
    Barbella: What lessons—if any—have EMS providers learned from the pandemic that they can carry forward once the virus is brought under control?
    Sammut: Our biggest lesson learned was that the process development, equipment capabilities, and IT investments we’ve made paid dividends in this type of environment. We were able to compress production launch time without sacrificing validation steps. And, I believe that skillset will continue to be valuable in serving customers with dynamic product development schedules in a post-COVID environment.
     
    Barbella: How were EMS providers’ supply chain management skills tested by the pandemic? How did your company respond to the challenge?
    Sammut: We didn’t really experience any issues other than addressing spot shortages. Our Lean manufacturing model sets up material bonds (or reserved stock) within our supply chain. As a result, if shortages develop we see them when that bonded inventory fails to replenish and that gives us more time to address them.
     
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