4 Biggest Electronic Manufacturing Trends in 2020

The manufacturing industry has seen a significant transformation in the last few years, and electronic manufacturing is no exception. In order to remain competitive, electronic companies and manufacturers will need to cope with developing challenges and look to the future. To help your company prepare, we’ve compiled four of the biggest electronic manufacturing trends to watch in 2020.

1. Distributed Supply Chains

The United States and China both play significant roles in the design and manufacturing of consumer electronics. As a result, high tariffs on electronics shipped from China to the U.S. have been shaping electronic production since they began in 2018. For the most part, companies in the U.S. have responded by moving part or all of their supply chains out of China and into other countries in Southeast Asia.

In 2020, electronic companies will need to deal with the effects of their new distributed supply chains. By moving aspects of production to different locations, companies have distributed risk, including risk associated with the current geopolitics and the coronavirus outbreak in China. However, the need to ship half-made products to different countries will likely also cause longer lead times.

Professionals on both the design and manufacturing ends of the industry will need to focus resources on managing multiple factories, expanding the number of employees responsible for overseeing production or increasing remote visibility.

2. Implementation of Cloud Technology

To aid in boosting remote visibility, some electronic manufacturing companies may turn to cloud technology in 2020. Although the manufacturing industry has been hesitant to utilize the cloud in past years due to concerns about security and trade secret protection, the benefits may finally seem to outweigh the costs.

Cloud-based systems store data offsite rather than on isolated on-premise servers. Cloud technology can boost efficiency and allow electronic manufacturers to share data with other facilities located around the world. These benefits will make it easier for manufacturers to navigate supply chain distribution.

3. Cybersecurity Improvements

With the implementation of more cloud-based technology, we can also expect electronic manufacturing companies to pour more resources into cybersecurity. According to a 2019 report, half of manufacturing companies were impacted by a data breach in just 12 months. To prevent attacks and minimize risk while embracing a range of productivity-enhancing innovations, employees beyond IT will need to get involved with cybersecurity in the coming years.

4. Focus on Sustainability

Although the electronic industry has been halfheartedly discussing sustainability for years, companies in 2020 may need to start taking environmental stewardship more seriously. Whether due to growing concerns about climate change or electronic waste, today’s consumers expect companies to take responsibility for the impacts of their products. Fifty million tons of electronic waste were produced globally in 2018, and the transition to 5G devices will only add to that number.

Electronic manufacturers that want to improve their image while reducing costs and cutting waste should focus on improving efficiency, yields and repair success rates.

Get More Manufacturing Advice From Global Electronic Services

With new technology on the horizon and evolving geopolitical and environmental challenges, 2020 will be a big year for electronic production. To stay informed about the latest manufacturing trends, check out our other blog posts or contact us online today. Global Electronic Services repairs and services industrial electronics, hydraulics and pneumatics for over 60,000 manufacturers and distributors worldwide.

Call for Help