As part of the development of e-market places, contract manufacturers have been actively supporting new Application Service Providers (ASP) in the electronics design field. Their software concepts go beyond mere part-trading. Design-ASPs develop database systems which integrate parts purchasing with the design process and product introduction at the assembly-line level. Start-up companies like Silicon Valley-based Spin Circuit are promoting data-exchange systems for the design of printed circuit boards and hardware, bringing together OEMs, parts producers, distributors, and contract manufacturers. These design gateways promise seamless interfaces between product designers, manufacturing engineers, and parts suppliers who all will become part of a single internet-based exchange system. Design engineers may even be able to change their product lay-outs according to the cost and availability of parts tracked in online-databases. Some contract manufacturers are heavily supporting start-ups in this field because early participation seems to offer the opportunity to control crucial nodes in global Internet-based manufacturing networks.
The future impact of the integration of component design and trade on supplier networks and on manufacturing and engineering work is still difficult to assess. The suggestion seems plausible, however, that global electronics parts and component markets will foster the de-localization of sourcing relationships which is already characteristic for the contract manufacturing industry. On the labor side, we may expect substantial rationalization of engineering work, an increased separation of product and process engineering, and a diminished role for personalized cooperation between product and manufacturing engineers within local industry-networks. In qualitative terms, engineering work may become still more oriented towards non-technical, commercial factors like cost and parts availability. It may also mean increased competition for engineers in developed countries from outsourcing of engineering work to low-cost regions. However, such a development will mainly reinforce existing trends, since contract manufacturers are actively making use of local engineering talent which in some locations, especially in Eastern Europe, is widely available.
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