This research report is an assessment of the fiscal year 2009 spending for the United States Department of Defense (DoD) on products and services related to enterprise IT. The research service identifies the major market dynamics that are currently influencing growth (drivers and restraints), as well as trends and threats that are impacting the industry. The research service provides a competitive overview and details for the key industry participants. In addition, the research service contains spending forecasts, competitive information for each segment of the market. The period for the study is 2009 to 2015, with 2009 as the base year. Companies will be able to use this information to highlight opportunities within DoD.

Electronic manufacturing service (EMS) providers utilize a comprehensive business model that specializes in large economies of scale in manufacturing, raw materials procurement and gathering resources, design expertise as well as offer value-added aftermarket services such as warranty and repairs. With the business model fully implemented in the EMS industry, the OEM customer is able to focus more on its core competencies such as marketing strategies and building brand equity.

During the last 5 years, OEMs have relied more on EMS provider services for printed circuit board (PCB) fabrication and subsystem services. This offers a significant boost for the EMS industry as well as additional contributors such as the adoption of lead-free products in niche areas including aerospace & defense, medical devices, and automotive markets.

The North American EMS aerospace and defense (A&D) market will continue to be a focus area for industry participants due to end-user requirements and the drive for OEMs to increase efficiency and reduce costs. OEMs including defense prime contractors are constantly seeking out EMS providers for outsourcing activity due to demand such as DoD modernization plans for increased business and geopolitical tensions Iraq and Afghanistan. These factors require higher defense spending and therefore leading to more EMS provider opportunities.

Increased market penetration is expected in the A&D industry but not without significant challenges. One such pertinent challenge is barriers to entry. The EMS A&D industry here in North America is highly competitive, and EMS providers compete based on two primary factors such as performance and price. As competition continues to increase, OEMs are more likely to gain more assistance from EMS providers with regards to innovative manufacturing technology, design expertise, and aftermarket services.

DEFINITIONS

EMS providers: They are the strategic supply chain partners that provide manufacturing services to the OEMs. In general, EMS providers manufacture products designed by the OEMs, which are then sold under the OEMs' brand names. EMS providers have also expanded their service offerings to include design services as well as distribution and logistics services.

Original Equipment Manufacturers (OEMs): In this research service OEMs will be defined as defense prime contractors in the A&D industry, such as Raytheon Company, Northrop Grumman Corporation, Lockheed Martin Corporation, Boeing, and others.

Tier-one EMS providers: In this research service, tier-one EMS companies have annual revenue of over $xxx million. They are large, multinational companies that operate under very narrow profit margin and yet, due to their innovative and competitive strategies, are market leaders that achieve economies of scale.

Tier-two EMS providers: These EMS providers have annual revenue between $xxx million and $x billion.

Tier-three EMS providers: These EMS providers have annual revenue below $xxx million.

Original Design Manufacturers (ODMs): The ODMs are contract manufacturers whose core competency is to offer flexible design resources to OEMs. They also provide manufacturing services at a smaller scale, when compared to EMS providers. ODMs retain their intellectual property and sometimes sell products within the market under their own brand names.

Procurement: This is a set of activities related to buyer-side planning and purchasing and includes tasks such as purchase requisitions, supplier analysis, and so on.

TABLE OF CONTENTS

Executive Summary 
Introduction
Definitions and Scope
Market Competitive Structure 
Key Growth Markets 
Conclusions and Recommendations  
North American EMS Aerospace and Defense Market Dynamics 
Market Overview  
Market Engineering Measurements
Industry Challenges
Market Drivers and Restraints
Manufacturing Trends
North American EMS Aerospace and Defense Market Analysis  
Market Revenue Forecasts  
Market Share Analysis 
Top A&D OEMs                   

List of Figures
   EMS Aerospace and Defense Market: Competitive Structure (North America), 2009               
   EMS Aerospace and Defense Market: Revenue Forecasts (North America), 2006-2014         
   EMS Aerospace and Defense Market: Market Share Analysis of Top 5 Participants (North America), 2009 
   EMS Aerospace and Defense Market: Top A&D OEMs (North America), 2009        

List of Charts
   EMS Aerospace and Defense Market: Competitive Factors (North America), 2009          
   EMS Aerospace and Defense Market: Opportunity Analysis of Products and Technologies (North America), 2009                              
   EMS Aerospace and Defense Market: Market Engineering Measurements (North America), 2009
   EMS Aerospace and Defense Market: Top Four Industry Challenges (North America), 2009       
   EMS Aerospace and Defense Market: Market Drivers and Restraints (North America), 2009
   EMS Aerospace and Defense Market: Revenue Forecasts (North America), 2006-2014          
   EMS Aerospace and Defense Market: Market Share Analysis of Top 5 Participants (North America), 2009