contract manufacturing in silicon valley
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Contract Manufacturing in Silicon Valley. Josh Williams, BW Research April 6, 2012. What is Contract Manufacturing and why are we focused on it?. - PowerPoint PPT PresentationTRANSCRIPT
Contract Manufacturing
in Silicon ValleyJosh Williams, BW Research
April 6, 2012
What is Contract Manufacturing and
why are we focused on it?
Contract Manufacturers (CM) are those firms that produce and assemble products under contract for other companies. This includes CEMS (Contract Electronics Manufacturing Services) firms.
For Emerging Green & Technology Employers have the ability to turn an idea into a product quickly & effectively was a key reason to be located in Silicon Valley
Top 10 Global CM FirmsHave at least one location in or near
Silicon Valley.
Manufacturing Employment in the US is Recovering!?
Due to lower relative transportation & material costs as well as higher quality control
"It's a jobless recovery in some sense, but we have jobs out there, so it's the skills discussion,"
said Andrew Liveris, CEO of Dow Chemical, January 2012
What do Silicon Valley’s Contract Manufacturing
employers look like, and what are their workforce needs?
Silicon Valley Contract Manufacturing Profile
Santa Clara County Contract Manufacturing Firms 91
Santa Clara County Contract Manufacturing Employees
7,591
Average Workers per Santa Clara County Contract Manufacturing Firm
83
Santa Clara County Manufacturing Firms
3,232
Santa Clara County Manufacturing Employees
158,789
Average Workers per Santa Clara County Manufacturing Firm
49
% Santa Clara Contract Manufacturing Employment in Manufacturing
4.8%
* Caution growth expectations generated from a small sample size
Silicon Valley Contract Manufacturing Employment Growth
Contract Manufacturers for this study typically fall somewhere on the spectrum between;
Actively engaged in New Product Introductions (NPI), and the product development process while focusing on more emerging technologies
vs.
Focused on specific niches within manufacturing and assembly process while focusing on larger more established clients.
Silicon Valley’s CM employers repeated several key themes for staying and growing in the region:
Proximity to customers including Original Equipment Manufacturers (OEMs) in the SV.
Pace of innovation & new product development in Silicon Valley
Access to Talent including access to outside expertise in emerging technologies
What are the occupational opportunities found in Silicon Valley’s Contract Manufacturing Workforce?
Key Occupations in Silicon Valley’s Contract Manufacturing Workforce
Key Occupational Category #1Production Positions = Applied engineers, related technicians (quality control, operations and maintenance), assemblers and machine operators
Key Occupational Category #2Design Positions = Designers, Drafters and CAD technicians
Key Occupational Category #3Project Management and Sales Positions = Project managers, sales representatives and administrators
Workforce Development Issues Specific to Contract Manufacturing
1. Large retirement challenge not an issue for most employers.
2. Soft-skill training particularly written and spoken communication skills and contextual training would be valuable for employers
Similarities with Workforce Development in CM & Emerging Green
1. Employers are considerably more focused on industry experience and on the job training than degrees or educational programs.
2. Similar occupational profile, in production, design and customer service/sales.
3. Employers feel a strong connection to the region’s technology and emerging industries, renewable energy, energy efficiency, defense & aerospace, information technology & security.
What are the workforce & economic development strategies that should be considered based on the research findings?
Workforce Development Conclusions & Recommendations
Recommendations I
Expand foundational training in applied engineering, machining and product design
Silicon Valley produces a broad array of engineers, but employers continually talked about the need for engineers and technicians who had experience working with different machines and design applications.
Recommendations II
Introduce students & job-seekers to related internships and entry-level opportunities in CM and aligned industries
Work experience is a key requirement for students and job-seekers interested in working in contract manufacturing. Any program to increase work experience in contract manufacturing or related industries would be valuable .
Economic Development Conclusions & Recommendations
Recommendations III
Create networking opportunities with small, emerging businesses
CM employers largely believe their growth opportunities lie with smaller or emerging businesses and yet most existing industry associations and networking events typically represent the larger and more established employers.
Recommendations IV
Coordinate industry specific events that highlight the region’s contract manufacturing
Contract manufacturers tend to see themselves connected to a few key industries and focus their new business efforts within industry associations. Industry associations within Silicon Valley should be made aware of the strength of CM in the region, particularly in global NPI’s.
Recommendations V
Connect contract manufacturers with incubators, entrepreneur groups and other start-up supports
A considerable segment of contract manufacturing employers prefer to focus on cutting edge technologies and innovative NPI’s, while many entrepreneurs are not able to find qualified and reliable component and prototype manufacturers.
Methodology
Methodology I
Our Silicon Valley contract manufacturing profile was developed through several data collection methodologies;
a.Complete a secondary data analysis of Silicon Valley’s specialized suppliers and support services.
Methodology II
b. Develop a database of known SV contract manufacturers and product design service firms
c. Complete 16 executive interviews with Silicon Valley Contract Manufacturers including both small and large firms as well established and emerging firms.
Contract Manufacturing
in Silicon ValleyJosh Williams, BW Research
April 6, 2012