by Jennifer Hart Yim | Jul 28, 2026 | Blog, Consumer Electronics, Marketing, Strategy
Ask most electronics manufacturing services (EMS) providers what makes them different and you’ll hear the same list: quality, flexibility, customer service, and a lineup of SMT lines. The problem is that every competitor says the same thing. To an OEM looking for a new contract manufacturer, the websites start to blur together. That’s the central problem in EMS marketing.
Solving it starts with a simple truth: OEMs aren’t choosing a commodity. They’re choosing a long-term partner that will build their product, protect their reputation, and keep their supply chain running. Here’s what OEMs really look for when choosing an EMS partner, and how to show them you have it.
What does EMS marketing actually involve?
EMS marketing is how electronics contract manufacturers attract and win OEM customers for PCB assembly, box build, and full product manufacturing. Effective EMS marketing positions a provider around specific strengths, such as industries, technologies, and volume ranges, and proves them to the engineers, supply chain leaders, and executives who choose manufacturing partners.
It’s a core part of the electronics industry marketing we do for manufacturers, distributors, and recyclers across the electronics supply chain.
Who decides which EMS provider an OEM uses?
| Role |
What they care about |
Content that helps |
| Hardware and NPI engineers |
DFM feedback, prototype speed, technical capability |
Capability pages, DFM guides, NPI process overviews |
| Supply chain and procurement |
Component sourcing, lead times, cost, resilience |
Sourcing strategy, regional footprint, shortage case studies |
| Quality |
Certifications, traceability, defect rates |
Quality system pages, certifications, inspection and test capabilities |
| Executives |
Risk, scalability, total cost, partnership fit |
Case studies, company story, customer testimonials |
What do OEMs look for in an EMS partner?
OEMs consistently weigh five things: a clear fit for their industry and volume, proven technical capability, the right certifications, a smooth NPI process, and a resilient supply chain. Here’s how to prove each one in your marketing.
Pick your niches and own them
Very few EMS providers are truly best for everyone. Most are exceptional for a certain set of industries (medical, aerospace and defense, industrial, energy), a certain volume range (high-mix low-volume vs. high volume), or certain technologies (rigid-flex, RF, fine-pitch BGA). Build dedicated pages for each and say plainly who you’re the right fit for.
Get specific about capability
Replace “advanced SMT capabilities” with real details: smallest component size, BGA and micro-BGA experience, inspection methods (AOI, X-ray, ICT, functional test), conformal coating, and box build scope. Engineers compare these line by line.
Make certifications work harder
ISO 13485, AS9100, IATF 16949, ITAR registration, and IPC-A-610 class capabilities open doors in regulated industries. Pair each with a sentence about what it means for the customer.
Show your NPI process
OEMs often choose a partner during prototyping and stay for production. A clear, visual explanation of your NPI process, from DFM review to first article to ramp, tells engineers what working with you will feel like.
Prove supply chain resilience
After years of component shortages, OEMs ask hard questions about sourcing. Explain your component procurement strategy, distributor relationships, alternate-part process, and regional manufacturing footprint.
What marketing tactics work for contract electronics manufacturers?
- A capability-first website. Organize pages by industry, service, and technology so OEMs can quickly confirm fit. Our website design work starts with this structure.
- Search and AI visibility. OEM engineers search for things like “medical device PCB assembly ISO 13485” or ask AI tools for EMS providers in a region. Pages that answer those queries directly earn visibility. See our SEO and AI optimization approach.
- Case studies. Show a program from NPI to production, including the challenge, constraints, and measurable outcomes.
- Account-based marketing. Most EMS providers can name the OEMs they’d love to win. Targeted ABM programs keep you in front of those accounts until a program comes up for bid.
- Trade shows with a plan. Events like IPC APEX EXPO matter, but only with pre-show outreach and fast follow-up.
Specific beats generic
OEMs don’t choose a contract manufacturer because of a bigger list of adjectives. They choose the partner that clearly fits their industry, their technology, and their volume, and proves it. EMS providers that market with that kind of specificity win more of the right programs.
Want help sharpening your positioning and reaching more OEMs? See how we work with electronics manufacturers.
FAQ
What do OEMs look for when choosing an EMS provider?
OEMs look for a clear fit with their industry, technology, and volume, proven technical capability, certifications that match their regulatory needs, a well-defined NPI process, and a resilient component sourcing strategy. Each member of the buying committee weighs these differently.
What is EMS marketing?
EMS marketing is how electronics manufacturing services providers attract OEM customers for PCB assembly, box build, and product manufacturing. It focuses on positioning around specific industries, technologies, and volumes, and proving those strengths to engineering, supply chain, quality, and executive buyers.
How do contract electronics manufacturers find new OEM customers?
The most effective approaches combine a capability-focused website, search and AI visibility for industry-specific queries, detailed case studies, account-based marketing aimed at target OEMs, and well-planned trade show programs.
How can an EMS company differentiate from competitors?
Choose and own specific niches, such as industries, volume ranges, or technologies, and back them with concrete capability details, relevant certifications, a clear NPI process, and proof of supply chain resilience.
What certifications should EMS providers highlight?
Highlight the certifications that match your target industries, such as ISO 13485 for medical, AS9100 and ITAR registration for aerospace and defense, and IATF 16949 for automotive, along with IPC workmanship standards.
Related reading
by Jennifer Hart Yim | Jun 30, 2026 | Blog, Consumer Electronics, Marketing
When an enterprise retires 5,000 laptops, the decision about who handles them doesn’t sit with one person. IT wants a smooth pickup. Security wants proof every drive was wiped or destroyed. Sustainability wants recycling numbers for the ESG report. Finance wants to know how much value comes back. Procurement wants all of it in a contract. That’s what makes ITAD marketing different from selling almost any other service.
That’s why it’s harder than it looks. IT asset disposition providers aren’t selling a pickup service. They’re selling risk reduction to a buying committee. Here’s how to market an ITAD company so it wins those contracts.
The short answer: ITAD buyers are buying risk reduction first and value recovery second. The providers that win enterprise contracts speak to every member of the buying committee and back each claim with certifications, chain-of-custody detail, and audit-ready reporting.
What is ITAD marketing?
ITAD marketing is how IT asset disposition providers attract and win organizations that need to retire IT equipment securely: data center hardware, laptops, mobile devices, and networking gear. Good ITAD marketing proves three things: that data will be destroyed, that the process is compliant and documented, and that the client will recover as much value as possible.
It’s one of the specialties within our electronics industry marketing work, alongside component distribution, electronics manufacturing, and recycling.
Who buys ITAD services?
ITAD decisions usually involve several roles, each with a different question:
| Role |
Primary question |
Proof they want |
| IT and infrastructure leaders |
Will this be easy and on schedule? |
Logistics process, onsite services, timelines |
| Security and compliance |
Can we prove every device was sanitized? |
NIST 800-88 methods, certificates of destruction, audit trails |
| Sustainability and ESG |
What happens to the equipment? |
Downstream vendor policies, recycling and reuse metrics |
| Finance |
How much value comes back? |
Remarketing approach, revenue share, reporting |
| Procurement |
Is this vendor qualified and low risk? |
Certifications, insurance, references, contract terms |
Content that only talks to one of these roles leaves gaps the others will notice.
What makes an ITAD provider stand out?
Certifications, explained
R2v3, e-Stewards, NAID AAA, ISO 14001, and ISO 27001 are table stakes for many enterprise buyers. List the ones you hold, link to certificates, and explain in plain language what each one covers. Many buyers know the acronyms but not the differences.
Chain of custody, shown
Walk prospects through every step: asset tagging, secure transport, serialized tracking, sanitization or destruction, and reporting. Diagrams, photos, and sample reports make an abstract process concrete.
Reporting as a product
Enterprise clients need audit-ready documentation. If you offer a client portal, serialized reports, or certificates of data destruction by device, feature them prominently with screenshots.
Value recovery with real numbers
Explain how you test, refurbish, and remarket equipment, and share examples (even ranges) of value returned. This is often the line item that shifts a decision.
Sustainability proof
Describe your downstream partners, your zero-landfill policy if you have one, and the environmental metrics you report. Sustainability teams increasingly sit in on ITAD decisions.
What content works for ITAD lead generation?
- Service pages by asset type and need (data center decommissioning, laptop refresh, onsite shredding), written to answer specific searches.
- Buyer guides, such as “how to choose an ITAD vendor” or “ITAD RFP checklist,” that help procurement and security teams evaluate options.
- Case studies that show a decommission project from start to finish, including timelines and outcomes.
- Compliance explainers on data sanitization standards and industry-specific requirements for healthcare, finance, and government.
- Account-based campaigns aimed at enterprises with known refresh cycles or data center moves. Our account-based marketing programs are built for exactly this kind of high-value target list.
How do ITAD buyers find providers?
Most start with search, peer referrals, and increasingly AI tools. A security manager might ask, “Which ITAD providers offer onsite hard drive shredding with serialized reporting?” To show up in that answer, your site needs pages that state those capabilities clearly, and your company details need to be consistent across certification body listings, directories, and industry sites. That’s the focus of our SEO and AI optimization services.
Putting it together
ITAD is a trust purchase with many stakeholders. The providers that win enterprise contracts make their process visible, speak to every member of the buying committee, and back each claim with certifications, documentation, and results.
Ready to build an ITAD marketing program that reaches enterprise buyers? Learn how we help ITAD and electronics companies grow.
FAQ
What is ITAD marketing?
ITAD marketing is how IT asset disposition providers attract and win organizations that need to retire IT equipment securely. It focuses on proving data destruction, compliance, chain of custody, and value recovery to IT, security, sustainability, finance, and procurement buyers.
What certifications matter most in ITAD marketing?
Enterprise buyers commonly look for R2v3 or e-Stewards for responsible recycling, NAID AAA for data destruction, and ISO 14001 and ISO 27001 for environmental and information security management. Feature the ones you hold and explain what each covers.
How do ITAD companies generate leads?
Effective ITAD lead generation combines search-optimized service pages, buyer guides and RFP checklists, case studies, and account-based campaigns aimed at enterprises with upcoming refresh cycles or data center moves.
How can an ITAD provider differentiate from competitors?
Differentiate with transparency: show your full chain of custody, offer audit-ready reporting, share real value recovery examples, and report sustainability metrics. These are the details buying committees compare.
Related reading
by Jennifer Hart Yim | Jun 2, 2026 | Blog, Consumer Electronics, Marketing, Strategy
When a production line is down because a part is on allocation, a buyer will look anywhere for stock. But “anywhere” comes with risk. Every component buyer knows the stories about remarked chips, refurbished parts sold as new, and lots that failed X-ray. So when they land on an independent distributor’s website, they aren’t just asking “Do you have it?” They’re asking “Can I trust you?” In electronic component distributor marketing, that second question is the one that decides who gets the order.
Your marketing’s core job is proving you’re a safe source, fast. Here’s how independent and specialty distributors can do it.
What is electronic component distributor marketing?
Electronic component distributor marketing is how franchised, independent, and specialty distributors attract and convert buyers at OEMs, contract manufacturers, and repair or MRO operations. For independent distributors especially, it focuses on three things: being found when buyers need hard-to-find or obsolete parts, proving quality and counterfeit avoidance, and responding to RFQs faster than competitors.
It’s one part of the broader electronics industry marketing work we do with distributors, manufacturers, recyclers, and ITAD providers.
Why is trust the biggest marketing challenge for independent distributors?
Counterfeit and suspect parts are still very much in circulation. ERAI, which tracks nonconforming and suspect counterfeit parts, reported 748 parts in 2025 in its 2025 annual report, and about 69% of them were classified as suspect counterfeit. Reports dipped compared to 2024, but the risk hasn’t gone away, and buyers know it.
That puts independent distributors in a tough spot. Their value is finding parts that franchised channels can’t supply. Their challenge is convincing quality and purchasing teams that those parts are authentic. Marketing that leads with inventory and price, and leaves quality as an afterthought, misses what buyers care about most.
How can distributors prove quality through marketing?
Lead with certifications and standards
If you’re certified to AS9120, ISO 9001, or compliant with AS6081 counterfeit avoidance requirements, say so prominently and explain what it means for the buyer. Link to certificates. Name your ERAI or GIDEP participation if applicable.
Show your inspection process
Walk buyers through what happens to a part before it ships: visual inspection, X-ray, decapsulation, solderability, electrical testing, and whether you use in-house or third-party labs. A short process page with photos or video does more than a paragraph of promises.
Make traceability visible
Explain how you document chain of custody and what paperwork ships with an order (certificates of conformance, test reports, original manufacturer documentation where available).
Publish real outcomes
Case studies about solving a line-down situation or sourcing an end-of-life part for a long-lifecycle program are powerful proof. Even short, anonymized stories work.
How do buyers search for electronic components?
Component buyers search in two very different ways, and your marketing should cover both.
| Search type |
Example |
What to build |
| Part number |
A specific manufacturer part number |
Crawlable line card or inventory pages, clean product data, fast RFQ forms |
| Problem or category |
“obsolete FPGA sourcing” or “line down shortage help” |
Service pages, guides, FAQs, and case studies |
| Supplier evaluation |
“AS6081 certified distributor” |
Quality and certification pages with clear proof |
| AI assistant |
“Which independent distributors test for counterfeit chips?” |
Plain-language capability pages and consistent listings across directories |
Strong SEO and AI search optimization makes sure you’re visible for all four.
What channels work best for electronic component distributor marketing?
- Your website. It’s where quality and procurement teams vet you. Fast RFQ forms, clear quality pages, and up-to-date contact paths matter.
- Search and AI visibility. Buyers under pressure search first. Being findable by part category, service, and certification keeps you on the list.
- Paid search. Targeted paid campaigns can capture high-intent shortage and obsolescence searches quickly.
- Email and LinkedIn. Market updates on lead times, allocation, and pricing keep you top of mind with buyers between urgent needs.
- Trade shows and industry groups. Events where OEM and CM buyers gather are still valuable for building relationships.
How should distributors market during shortages and surpluses?
Shortages bring urgent demand. Surpluses bring excess inventory to sell or buy. Both cycles reward the distributors who’ve built visibility ahead of time. A few practical moves:
- Publish market intelligence (lead time trends, allocation updates) on a regular schedule. It builds authority and gives buyers a reason to come back.
- Create pages for excess inventory and asset recovery programs so OEMs and CMs with surplus can find you, too.
- Keep paid campaigns ready to scale when a category tightens.
Where to start
For independent component distributors, every marketing touchpoint should answer one question: “Can I trust this source?” Make your quality process visible, prove it with standards and outcomes, and make sure buyers can find you when they’re searching under pressure.
Want help turning your quality story into a lead generation engine? See how we help electronics companies grow.
FAQ
How do independent electronic component distributors get more RFQs?
Make it easy to find you by part category, service, and certification, then make it easy to trust you. Clear quality and inspection pages, fast RFQ forms, case studies, and consistent search and AI visibility all increase RFQ volume.
What certifications should component distributors highlight in their marketing?
Highlight any quality and counterfeit avoidance credentials you hold, such as AS9120, ISO 9001, and AS6081 compliance, along with participation in reporting programs like ERAI or GIDEP. Explain what each means for the buyer.
Should distributors publish their inventory online?
Publishing a crawlable line card or inventory listing helps buyers searching by part number find you. Keep it current, and pair it with a fast RFQ path so buyers can confirm availability.
How do I market an electronics distributor in AI search tools like ChatGPT?
Publish plain-language pages that state what you source, how you test, and what certifications you hold. Keep company details consistent across your website, directories, and industry listings, and earn mentions in trade publications.
Related reading
by Jennifer Hart Yim | Jan 24, 2019 | Blog, Consumer Electronics, Logistics, Supply Chain
Drones and other autonomous technology are actively being utilized in supply chains. Here’s how companies like PINC and Amazon are leveraging this new technology for inventory management.
Highlights:
- Drones and other autonomous technology are actively being utilized today in supply chains.
- PINC and Amazon are using autonomous technology for inventory management.
- By implementing new technologies, operating costs decreased by 20%, successfully boosting operating margins.
It’s been five years since Charlie Rose interviewed Amazon CEO Jeff Bezos on 60 Minutes about new innovations that Amazon was working on. Bezos revealed that Amazon was on the brink of a supply chain revolution involving octocoptor drones transporting parcels: Amazon Prime Air.
Tweets and status updates immediately conveyed consumer excitement that flying Amazon drones could deliver packages directly to doorsteps. And on the flipside, some employees of shipping carriers and brick-and-mortar retailers expressed fear that their respective industries would become obsolete.
Fast forward to the present… While advancements have been made in drone and autonomous technology, such as Amazon’s tests in the United States, Dominos’ self-driving delivery car, and Tesla’s self-driving truck, Bezos’ grand vision still remains a dream for impatient online shoppers.
That aside, drones and other autonomous technology are actively being utilized today in supply chains, and their usage extends beyond the conceived purpose of package delivery. One such use case that companies PINC and Amazon leverage this technology for is inventory management.
PINC: Aerial Inventory Robots
Less than 10% of the 250,000 warehouses and manufacturing facilities in the United States utilize automated storage and retrieval systems (AS/RS) for managing their inventories. Instead, they resort to manual human labor coupled with outdated storage solutions and antiquated inventory management measures. The need for automation in the factory setting is paramount.
PINC, a top provider of yard management systems, pioneered the use of drones in warehouses. Since 2014, PINC enacted the use of flying drone technology (PINC AIR, Aerial Inventory Robots) to track assets in warehouses.
PINC AIR Hardware
These “inventory robots” leverage barcode-reader technology and roam premises in an automated fashion, ensuring efficient inventory tracking. Technically speaking, the drones are equipped with optical sensors which allows them to take pictures of barcodes and obtain information for identifying and counting inventory.
Indoor aerial drones have limited GPS capabilities compared to their outdoor counterparts, and instead rely on indoor location services software to aid in setting the devices’ “travel boundaries” within warehouses.
PINC AIR Benefits
PINC AIR saves time, money, and offers a safer alternative to traditional rolling ladders for companies wishing to upgrade their inventory management system. Businesses spend less on workers’ compensation claims by reducing on-job injury rates. Their robots operate at the leisure of the company, are 300 times faster than a human performing the same work, and possess high accuracy levels. Even a daily inventory check provides a company a plethora of data.
PINC’s aerial drones replace the clipboards and spreadsheets of inventory counts by giving companies a platform that automatically displays the needed information in real time. Businesses could use this data to answer a variety of questions such as, “How many days do certain television brands sit in stock at certain facilities during the holiday season?”
Amazon Robotics (Kiva): Robots
In 2012, Amazon acquired Kiva for $775 million, phased-in its technology in its warehouses a few years later, and formed the subsidiary Amazon Robotics. Kiva robots replaced forklifts, large conveyor systems, and other human-operated machines. They’re efficient at performing monotonous tasks that previously fatigued employees, such as carrying and stacking bins around all day.
[bctt tweet=”In 2012, Amazon acquired Kiva for $775 million, phased-in its technology in its warehouses, and formed the subsidiary Amazon Robotics. Kiva robots replaced forklifts, large conveyor systems, and other human-operated machines. ” username=”Fronetics”]
Amazon made the move to continue pursuing competitive advantage in the e-commerce space along with maintaining control of the thousands of products in their fulfillment centers.
Some of Amazon’s robotics are large, 6-ton “Robo Stow” mechanical arms that move and stack bins around the factory. Others are used for carrying, transporting, and storing merchandise up to 3,000 pounds in an orderly fashion. Using these robots to stack and transfer merchandise saves aisle space in warehouses, allowing facilities to carry more inventory, meaning customers will be able to receive their goods quicker.
But what happened to the human employees? Did Kiva’s technology truly destroy thousands of jobs within Amazon’s warehouses? Is this the part when we rage against the machine due to the “robot uprising” stealing jobs?
Put your pitchforks down. No layoffs occurred, and, instead, robots and humans began working together. Despite skeptics’ views that automation is a job disrupter, SVP of Operations at Amazon Dave Clark assured, “[…] automation increases productivity and, in some cases, demand from consumers, which ultimately creates more jobs […] Warehouse workers would continue to work in technologically rich environments.”
In fact, since the Kiva acquisition, Amazon increased the number of warehouse employees by nearly 200% to an upwards of 125,000 workers due to the increased volume of orders. Signs show no stopping either with the rising demand of high-skilled programming jobs, technicians, as well as those working hand-in-hand with robots.
Existing employees took on new roles and increased their skillset. For example, some employees moved to “stow” products on shelves for the robots to move away, following computer instructions to optimize where merchandise goes.
From there, the robots line up when customer orders arrive. Human “pickers” grab the products from the robots’ shelves and place them in plastic bins. At this point, merchandise is packed in cardboard boxes for customers. Warehouse jobs become less monotonous as the products that employees place on the robots vary.
And with that said, the cost savings from this technology is astounding…
Cost Savings → Increased Efficiency
Operating costs decreased by 20% at a $22 million savings from each fulfillment center, successfully boosting operating margins. These savings are attributed to enhancing warehouse efficiency. Amazon found that cycle times decreased between 75% and 80% to just 15 minutes. As a side effect, additional space was allocated for inventory, increasing the amount of storage by 50%.
Drawbacks & Limitations of Autonomous Technology in Supply Chains
PINC: Barcodes & Drone Power Source
PINC’s optical technology requires packages to display barcode tags in plain sight for the drones to process accurately. This raises concerns for companies who do not have this ideal setup in their warehouses, potentially raising costs.
Another issue is the drone power source. AIR drones are powered with hydrogen fuel cells instead of batteries as they last longer and charge faster. PINC CEO Matt Yearling revealed that the hydrogen-powered technology can fly up to three hours, and only needs a few minutes to refuel. Companies therefore need to strategically consider when the drones are scheduled to fly and follow-up with refueling procedures when the drones’ power is depleted.
Amazon Robotics (Kiva): Robots Cost & Limitations
The robots themselves are also limited in the tasks that they can perform. For example, the “robotic arm” was designed to pick up packages of certain sizes. Amazon has been in the process of researching their flexibility to complete more advanced tasks, though for now human workers help in that regard. After all, “There are many things humans do really well that we don’t even understand yet,” says Beth Marcus, an Amazon employee who specializes in robotics.
While autonomous technology clearly has its benefits, it comes with a cost. Aside from the initial expense Amazon incurred with Kiva’s acquisition, an installation cost of $15 million per location is required, costing Amazon nearly $1.7 billion to fully deploy robots in all 115 locations. Despite this cost, Amazon nets a savings of $7 million per facility when compared with its recurring annual savings.
Conclusion
While introducing new technology into the supply chain space is sometimes deemed as “disruptive,” the ends justify the means for autonomous technology. Along with new jobs being created, modern manufacturing workers are gaining more skills by learning to operate robots. Drones and robots allow companies to effectively match their scale and flexibility with increased consumer demand.
PINC’s drones are a great way to establish an accurate representation of inventory in real time from past to present. This further strengthens a company’s promise to fulfill needs for its customers.
Amazon Robotics enables companies to maintain incredibly efficient workflows in their warehouses and fulfillment centers.
In a poll of executives by Techpro, an astonishing 64% reported that there were no plans to leverage autonomous technology in their businesses. Applying drones and robots to inventory management gives companies a competitive advantage and a head start in taking advantage of cutting-edge technology.
It just goes to show that autonomous technology further streamlines operations and supply chains by allowing companies to reach new heights.
This article was written by Spencer Black, an MBA student at the Peter T. Paul College of Business and Economics at the University of New Hampshire, specializing in Information Systems & Business Analytics. After graduating summa cum laude from UNH in Computer Science in 2015, he has been working at Pegasystems as a Software Engineer.
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by Jennifer Hart Yim | Jan 15, 2019 | Blog, Consumer Electronics, Content Marketing, Logistics, Manufacturing & Distribution, Marketing, Supply Chain
It’s time for consumers to stand up to tech giants and force them to procure raw materials, used in an ethical and sustainable manner, for smart devices.
Highlights:
- Smart devices have created a dependency on batteries.
- Blockchain is being considered to track cobalt from its source in the production of lithium ion batteries.
- The number one way to decrease reliance on batteries is to reduce overall consumption of energy from batteries.
Battery technology is hot these days, no pun intended. Consumers are demanding high performance and safety from batteries as energy storage devices. Smart device manufacturers are responding by producing batteries that are smaller, safer, and store more energy; this performance comes at a cost. Increasingly rare and advanced materials are required to produce a safer and more high-performance battery for your smart device.
Cobalt is one of the key raw materials required to support the green revolution. Too bad over half of the world’s cobalt supply comes from the war-torn Democratic Republic of the Congo, where they are known to use child and slave labor in the mining of cobalt.
No one cares, however. Device manufacturers are delivering a price point and value that the consumers are willing to pay for. Supply chain reform could briefly interrupt this harmony, and peoples’ relationships with their smart devices could be jeopardized. The sad truth is that device manufacturers have pulled the wool over our eyes for too long and we have now become dependent on these batteries.
There is a solution, however.
Consumers have to stand up to tech giants such as Apple and Samsung and force them to procure raw materials used in an ethical and sustainable manner. This is happening in the “Responsible Cobalt Initiative” where blockchain is being considered to track cobalt from its source in the production of lithium ion batteries.
The blockchain method relies on adequate and honest oversight at the very site where the cobalt is being mined from the Earth in locations such as the DRC. How will honest oversight be implemented in what is known to be one of the most war-torn and corrupt regions of the world? Why wouldn’t Congolese mine owners simply lie about labor practices? In this case, the supply chain reform also requires political and cultural reform. I can’t help but think about that time when the U.S. tried to cause political and cultural reform in Iraq…
The bigger and more disturbing picture is that society is on track for over-reliance on lithium-ion batteries as energy storage devices. The number of smart devices is skyrocketing. And if electric vehicles achieve widespread adoption someday, the amount of lithium-ion batteries and cobalt required to fuel that growth will be staggering.
This is just one reason why the energy future of our planet is so uncertain. Surely the population will continue to grow. Smart device numbers will keep rising exponentially. The planet is going to need more energy and more energy storage. Hopefully, an increasing amount of energy will come from renewable and carbon-neutral sources. In order to maximize the potential of renewable energy installations, we need vast amounts of energy storage. Putting all our eggs in the lithium-ion battery basket is a very bad idea by-in-large due to the shortcomings of the cobalt supply chain.
It is important to note that the number one, most surefire way to decrease our reliance on batteries is to reduce overall consumption of energy from batteries. Simply put, if everyone were to spend half as much time on their cell phones, we would need half as many cell phone batteries. The phone would have to be charged half as often, and the battery would last twice as long, thus requiring half as many batteries over time. Maybe we would even start talking to each other once again.
In addition to reducing consumption, humankind must pursue radical technological advances in the field of energy storage. Power-to-gas and room-temperature-superconductors are two cutting-edge technologies that have the potential to revolutionize the way we store energy. Distributed generation, smart grids, and passive heating and cooling are some more conventional ways to reduce the energy storage burden placed on large-scale renewable generating facilities.
To make a long story short, the force of corporate greed and government corruption has overpowered the force of the consumers’ desires up until now. I am sure that the vast majority of smart device users, if asked, would be opposed to the use of child and slave labor in the mining of raw materials for their smart devices. I, for example, would be willing to pay more for a device that guarantees fair and ethical trade up and down the entire supply chain. We must never forget that we the consumers have the ultimate power. If we want Apple or Samsung to change their ways, we can easily do that. Get out and vote. Make your voice heard. Stand up to corporate greed and government corruption. Take a break from your cell phone and talk to the person next to you. I promise the world will be a better place.
This article was written by Peter Chivers, an MBA student at the Peter T. Paul College of Business and Economics at the University of New Hampshire. Pete is an engineer and MBA student with a passion for innovation and the outdoors. He spends his free time with his family hiking mountains, gardening, and building ice fishing contraptions.
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by Elizabeth Hines | Nov 13, 2017 | Blog, Consumer Electronics, Current Events, Manufacturing & Distribution, Strategy, Supply Chain
As sales and consumer desire continue to increase for drones and home assistants, the second-life market has a huge opportunity for growth.
Consumers are becoming ever-more enamored with their gadgets and toys. Drones and home assistants are becoming more ubiquitous in our homes (and flying around our skies). However, when these machines run their course — either because they break, or a newer model comes out — is there still use for them?
The market for gadgets
The marketplace for drones is an ever-growing one. Last year drone sales increased by an astounding 60%, and revenue grew to $4.5 billion. The drone market can be segmented into two categories — personal and commercial. Personal drones, which many consumers use for photography, is predicted to grow 40% this year, while commercial drones, which can be used for survey maps and delivery services, are expected to grow 60%.
While personal-use drones dominate unit sales, commercial-drone sales — which make up only about 6% of the market — are projected to represent 60% of the market’s revenue. This is due to the high cost of commercial drones, some with costs that exceed $100,000.
Home assistants are another intriguing category on the rise. These products are intended to control various devices in your home, such as thermostats, lighting, and security. These products also allow an individual to shop online using voice commands.
The frontrunner for this market has been Amazon’s Echo devices. As the primary nature of Amazon’s business is e-retail, the Echo device plays perfectly into this. By making it simple and easy to make Amazon purchases through voice command, these devices have great potential to bolster Amazon’s bottom line.
While this market is still in its early stages, Gartner Research expects tremendous growth, projecting $2.1 billion in consumer spending on personal home assistants by the year 2020.
The second-life market
So what becomes of these products as we replace them with newer models? Smart phones offer a sensible comparison when looking at the second-life market for these products. In 2016, consumers sold or traded in used cell phone devices for an average of $140 per device, generating a total of $17 billion worldwide. This selling and trading doesn’t just end after one transaction. It is predicted that at least 10% of premium ($500 and up) smartphones will have at least three users before they are retired.
We can draw a parallel about second-life potential between drones/home assistants and cell phones. Advances in technology render previous models obsolete or, at best, out of date. Consumers who can afford them will gravitate toward newer products. As with cell phones, they will generally look to recoup some of the cost for the newer product by selling or trading in the old one. These can then be sold to consumers looking for less expensive, older models. Even in the case of drones that crash, parts can be salvaged and sold to individuals that are looking to build their own drones.
The markets for these products are all still in early stages, so second-life markets are still in growth stages as well. As sales and consumer desire continue to increase for drones and home assistants, their life cycle will go on long after the first owners have moved on to newer models.
This post originally appeared on EBN Online.
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