Zero Emissions, Autonomous and Connected vehicles boom: greater involvement of Electronic Manufacturing Services providers

Talking nowadays about technology and automated maneuvering in the car industry is no longer a tale of Orwellian science fiction.

Regulators, industry players, safety specialists and society as a whole have started seeing — and feeling comfortable about — the prominent role technology can play in a global automotive supplier market estimated at US$620 billion by Statista, a multi-sector statistics provider.

Car manufacturers from Germany to Japan and the US are switching gears. They are adapting to new trends pervading not only technology but also innovation, convenience and comfort.

Connected and environmentally friendly

Consumers seek innovative and convenient vehicles. Some buyers relish electric cars and their inherent promise of a greener and more breathable environment. The Internet of Things plays a prominent role in daily tasks as diverse as parking a car, servicing it and checking its thermodynamic stability and components. And autopilot — the idea that a “smart” car can drive itself with or without passengers — is gaining momentum.

If you think all this is too sci-fi, read a few reports recently published by the National Highway Traffic Safety Administration, the U.S. auto industry’s chief regulator.

From crash avoidance to biomechanics and trauma, from automotive cybersecurity to vehicle safety, the NHTSA has highlighted the unique importance that technology and electronics will play in tomorrow’s car. Other regulators in Germany, Japan and Canada have reached similar conclusions, enjoining car manufacturers to pay attention to electronics — and their inherent safety risks — throughout the industry’s value chain.

Electronic Manufacturing Services, or EMS, is well positioned to serve the needs of carmakers as the sector braces for more technology and electronics in the vehicles we will drive in the next few years.

Electronic Manufacturing Services providers playing a key role in the value chain

EMS encompasses all companies that manufacture, test, distribute and provide return/repair services for electronic components. These businesses play a critical role in the production of a car, as well as in work streams as varied as maintenance, servicing and upgrading. EMS providers — sometimes called providers of Electronic Contract Manufacturing, or Contract Manufacturers — also furnish parts and expertise to assembly lines for original equipment manufacturers (OEM).

The fact that Contract Manufacturing businesses are ratcheting up investments is a good thing.

In an era in where Internet and technology have percolated into every aspect of car manufacturing — and in every aspect of daily life, for that matter — the need for quality electronics and technical expertise becomes salient.

A recent report by Deloitte Automotive Practice lifts the veil on the increased technological needs of a “connected vehicle.” (A connected vehicle is similar to your smart phone; you can program it, track its performance and schedule most tasks on it, among other things.) According to Deloitte, EMS providers can provide know-how and components in power control, safety control, communications and entertainment system, and body electronics.

Specifically, EMS businesses must gear up for quality and expertise in areas as diverse as advanced driver assistance systems, telematics, gasoline direct injection, tire pressure monitoring system, communication and entertainment system, steering control and other power control. EMS proficiency is also necessary in wiring harness, gearbox control, suspension control, passive safety control, dashboard and instrument system, anti-lock braking and electronic stability program.

Given the breadth and depth of areas where EMS components are necessary, providers must constantly polish their tools, expertise and components. Industry executives see these trends as good for business but also as an opportune public-relations exercise towards the overall society that is more conscious of — and more demanding of — safety, convenience and comfort in vehicles.

According to the Wall Street Journal, the high demand for Electronic Manufacturing Services (EMS) is attracting the interest of companies as diverse as traditional EMS providers, IT businesses, software providers and car manufacturers.

In an ever-competitive car industry that lately has seen the entrance of IT powerhouses like Google and Apple, pure-player Electronic Manufacturing Services (EMS) providers such as Asteelflash are well positioned to serve an expanding array of players and consumers. For nearly 20 years, Asteelflash has deployed expertise, components and state-of-the-art tools to fulfill clients’ operational needs. In the new era of technology-driven automotive industry, the company can add value to systems and processes requiring high-quality electronic manufacturing services.

Conscious of the importance of Electronic Manufacturing Services (EMS) in the new mobility age, Asteelflash offers its manufacturing expertise on various applications as varied as infotainment, battery management systems (BMS), emergency parking breaks (EPB), body controllers, lighting, sensors, power controls, electronic door controls, multipoint control unit, automotive levelling systems (ALS), green vehicles rechargeable batteries and charging infrastructure.

Published on Published on July 28, 2016

Albert Yanez Sr.

Executive Vice President & President of the AMERICA’s at Asteelflash

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