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Electronics Manufacturing

The humble cable harness is an unsung hero of electronics products, quietly doing its work to keep wires connected to power sources and linking components to ensure smooth, reliable, continuous operation. Cable harnesses organize and streamline wires within products and are critical to long-term performance. Cable harnesses may seem simple, but as products become more sophisticated and components continue to shrink in size, they are becoming more complex, able to work in challenging environments that require corresponding sophistication in design and assembly.

Benefits of Cable Harnesses

Cable harnesses are common in electronics products because of their many benefits. Well-designed and manufactured harnesses improve product production and performance in the following ways:

Choosing a strong cable harness manufacturer is critical to overall product quality and performance. Here's what to look for.

  • Decrease cost compared to manually installing wires one at a time.
  • Reduce installation time for projects involving extensive networks of wiring or cabling.
  • Improve the organization of cables, making identifying and maintaining connections easier.
  • Protect conductors from the elements outdoors or from chemical and moisture exposure indoors.
  • Reduce strain and stress on connections by supporting the weight of cables.
  • Improve safety by minimizing the risk of shorts or electrical fires.
  • Decrease installation and maintenance time by minimizing the number of connections and organizing components in a logical configuration.

Simple design principles amplify the benefits of wire harnesses. Sheaths protect wires against abrasion or exposure to hazards, minimizing the risk of failure. Connectors, clips, lacing, and other organizational elements reduce the space that wiring needs and ensure that technicians can easily locate components when needed.

Given the important role the cable harness plays in electronics devices, choosing a strong cable harness manufacturer is critical to product quality and performance. Here’s what to look for in a manufacturing partner.

Cable Harness Manufacturing Experience

No surprise here. The best cable harness manufacturers are usually the most experienced. While that may seem obvious, not all experiences are equal. For example, different industries have different safety and compliance requirements. Cable harnesses in the medical device industry must use approved components (wires, cables, interconnects, terminals, etc.) and meet high quality and performance standards. The automotive industry has its own material requirements for harnesses, due to high-temperature engine applications and the presence of corrosive gases and liquids, vibration, and exposure to outdoor elements like rain and snow. So make sure that your cable harness manufacturer has experience and a strong track record in your industry.

An electronics engineer talking with two customers as they stand at a worktable looking at a prototype electronic device
Your cable harness manufacturer should have experience and a strong track record in your industry.

Cable Harness Manufacturing Certifications

Close behind experience comes certifications as an important consideration for selecting a cable harness manufacturer. Manufacturers must comply with the markets’ regulations and demonstrate a track record of creating products that pass industry testing labs. You should expect your manufacturer to have the necessary certifications for producing the type of cable harness you need. These include: 

  • IPC: IPC is a trade association and standards body for electronic equipment and assemblies’ production requirements. IPC/WHMA-A-620 is the international standard for best practices and requirements for manufacturing cable harness.
  • ISO 9001: This is the international standard for a quality management system (QMS) in multiple industries, including cable harness.
  • UL/CUL: Underwriters Laboratories (UL/CUL in Canada) verify that products comply with safety standards for the United States and Canada, respectively. UL/CUL is the largest and oldest independent testing lab in the U.S. and its certifications are recognized by OSHA.
  • ETL: The Electrical Testing Lab (ETL) is another private lab recognized by OSHA that ensures products meet quality, health, environmental, safety, and social accountability standards.
  • ISO 13485: ISO 13485 is the international standard for quality requirements for medical device manufacturing.
  • TL9000-H 6.0/5.0: This is the quality management system for the telecommunications industry.
  • AS9100 REV D: The quality management system for aerospace manufacturing products.
  • ITAR: For aerospace and defense products, the International Traffic in Arms Regulations (ITAR) control the sale, manufacture, and distribution of defense and space-related services and materials on the United States Munitions List (USML).
  • RoHS: The Restriction of Hazardous Substances Directive (RoHS 1) guides the restriction of hazardous substances in electrical and electronic equipment in the European Union.

IPC/WHMA-A-620 is the most widely recognized standard for cable harness manufacturing and the most important certification for a manufacturer. Adhering to this standard ensures product quality, reliability, and consistency. 

Cable Harness Components

While a cable harness may look like little more than a bundle of wires, it is, in fact, an intricate system of components—a subsystem within electronics products. Key components include:

  • Wires: Also called conductors, wires (usually copper) transit electrical signals and power. The choice of wire gauge, insulation material, and strand count can significantly impact the harness’s performance and flexibility.
  • Connectors: Fasteners that simplify the connection between wires and other components, acting like plugs to ensure secure connections.
  • Terminals: Metal components attached to the end of the wires that link to connectors to complete the connection.
  • Sleeving: Coatings protect wires from external elements, abrasions, and other potential damages.
  • Ties and Clamps: Straps that organize and support the wires within the device to reduce strain and facilitate maintenance when needed.
  • Ferrules: Tubes crimped over stranded wires to secure the strands within a screw terminal.

Cable Harness Wire Connections

Cable and harness assembly typically requires connecting different wires to enable electrical current to travel through the connection. The most common methods of connecting wires are soldering and crimping. Both processes help create secure connections for cables, and they produce long-lasting and high-performing cable connections.

Crimping

Crimping is the process of installing connectors on the ends of cables using a crimping tool, and involves stripping, cutting, and crimping terminals on either side of the wires. Whether manual or automated, proper wire crimping requires specialized tools and materials and must follow certain steps. High-quality crimps form gas-tight joints, which result from compressing specially designed splice bands or crimp terminals with cables and wires. Gas-tight connections prevent corrosion from moisture and oxygen.

Terminal crimping reshapes the strands in a wire to form a low-resistance electrical connection. The connections must be strong, with a single joint that has no breaks or segments, and the crimp must meet the height and width specifications established by the terminal manufacturer. It is important to avoid overly tight connections, as this can reduce the cross-section of the wire.

Soldering

Soldering is a traditional wire termination method and can be more cost-effective than crimping. With this method, alloys of tin, silver, or lead are heated and used to create durable joints that connect contacts to wire conductors. Soldering is commonly used in applications that require dependable power and signal connections.

While soldering offers certain benefits such as affordability, some disadvantages of soldering include:

  • Risk of heat-related damage in the connector, contacts, and cables
  • Risk of compromised connections due to vibration and corrosion
  • More time consuming than crimping
Traditional soldering can be more cost-effective than crimping.

Cable Harness Manufacturing Design

Make sure the manufacturer you choose has an experienced engineering and production team capable of producing cable harnesses that meet design specifications and maintain high-quality standards. For example, one of your first decisions is whether to use automated or manual cable harness assembly. You can automate some steps in cable harness manufacturing, but manual production remains common. Automation is used more often when manufacturing at high volumes and using standard connections. However, complicated or non-standard connections can be produced more cost effectively by hand. Knowing your electronics manufacturer has the tools, know-how, and flexibility to design and produce the right cable harnesses for your device is critical to the success of your product.

Cable Harness Materials

The specific material used in a harness largely depends on its surrounding environment. If the wires are in an environment where moisture is present, for example, the harness should be of a material that is water resistant, such as polyethylene. Cables exposed to vibration or movement that might cause abrasion should be enclosed in a harness with a heat-shrink coating to minimize the effects of chafing. Some of the most common cable harness materials include:

  • Polyvinyl Chloride (PVC): PVC is a popular choice for low and medium-voltage wires and is common on indoor telecommunication cables due to its resistance to heat and moisture.
  • Fluorinated Ethylene-Propylene (FEP): FEP is tough and weather resistant, yet flexible. It’s also heat resistant, has dielectric properties, and is chemically inert.
  • Polyethylene: Polyethylene is lightweight, chemically inert, and ideal for high voltages. Polyethylene is available in different densities and has dielectric properties.
  • Nylon: Nylon is a popular choice because it resists weather elements, moisture, abrasion, and chemical reactions.
  • Thermoplastic rubber: A rubber material that stretches easily and returns to its previous state after stretching. It is also usable in high temperatures and resists damage from weather, chemicals, and aging.

There are many more options. Your manufacturer should be knowledgeable about cable harness materials and guide you to the right one for your application. 

Cable Harness Supply Chain

Supply chain concerns impact every aspect of electronics manufacturing, including cable harness manufacturing. Make sure your cable harness manufacturer has access to the parts you need. Verify delivery times and costs. Check to see if they have multiple sources in multiple geographies to hedge against political, social, or climate disruptions. Supply chain management is another area where a design team can add value. Design engineers can propose alternative parts that are more widely available, cost less, or are less at risk of supply chain disruptions.

Cable Harness Testing

Bundling and connecting cables in harnesses creates multiple points of potential failure, making testing and inspecting finished products crucial to ensure consistent, reliable performance. Your cable harness manufacturer should have a robust testing and quality control process in place that includes:

  • Incoming material inspection: Make sure all materials received are in good condition. Defects to look for include:
    • Damaged insulation
    • Incorrect cable sizes
    • Corrosion
    • Moisture
  • Design testing: Ensure that the components in the harness assembly are suitable for the harness design.
  • Label verification: Check that the cables are properly labeled to avoid incorrect connections.
  • Hipot testing: Verify a cable’s ability to withstand high voltages.
  • Voltage Standing Wave Ratio (VSWR) testing: For RF and coaxial assemblies, check that radio frequencies don’t change when passing through the assembly.
  • Continuity testing: Test for circuit opens and shorts to ensure end-to-end signal integrity.
  • Resistance testing: Make sure resistance remains in acceptable ranges.

Critical Role of the Cable Harness

Cable harness assemblies are critical to electronics manufacturing. They are the vital conduits for electrical signal and power transmission and are integral to the functionality of every electronics product, from simple transistor radios to sophisticated spacecraft. The stability and reliability of wire connections keep products operating and safe. In short, electronic products are only as good as the performance of their components and the cables that connect those components. 

Harness Excellence in Electronics Manufacturing

PRIDE Industries has years of experience in electronics manufacturing and cable and harness assembly across multiple industries. We have in-house engineers who can advise when certain crimp terminals would be better done manually due to the intricacy of the terminal or production volume. With a large library of manual and automated tools and customizable facilities, we can offer versatility and cost savings for prototyping and low-volume requirements. And because we set our standards high with IPC inspections and ISO certifications for quality control, you can rely on us to get your product right.
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When you think of a car, you may picture the chassis, the wheels, the headlights, the steering wheel, and more. Perhaps you see a busy mechanic, wrench in hand, under the hood. However, your vision of the industry is likely to undergo a considerable change in the next decade. The automobile industry is experiencing a dramatic shift as the integration of more sophisticated automotive electronics and software picks up speed. There is now even a term—software-defined vehicle (SDV)—to describe a car in which software significantly impacts a user’s experience.

Software and automotive electronics systems are impacting new cars in multiple areas: navigation, power management, and infotainment. Even recalls are different for SDVs. For example, Tesla’s recent mass recall would traditionally have required in-shop visits for two million cars—causing a great inconvenience for Tesla owners and costing the company billions of dollars. In this case, however, owners never needed to visit a shop; an over-the-air software update was all that was required. And software updates go beyond recalls. With SDVs, car manufacturers can fix motor issues, software bugs, and even add new features without requiring a visit to the mechanic.

Software and automotive electronics systems are impacting new cars in multiple areas: navigation, power management, and infotainment.

Six Trends in Automotive Electronics

Automated recalls are just one convenience made possible by more sophisticated automotive electronics. Read on to discover how advanced technologies are reshaping the car to meet consumer demands for greater control, ease of use, and safety.

Connectivity:

Utilizing advanced connectivity, next-generation cars can update features over the air as well as provide drivers with real-time information to make in-the-moment decisions. One advanced connectivity feature is Vehicle-to-Everything (V2X) technology, which leverages high-bandwidth, low-latency connectivity such as 5G. With V2X, there is a constant, two-way information flow between a car and its surroundings. The car can even share information from its sensors, cameras, and internal systems with other vehicles, nearby pedestrians, road infrastructure, and smart city systems. The benefits of this connectivity include optimizing energy use and improving road safety. V2X technology also adds to driver convenience, enabling drivers to pay automatically for parking and tap into other driver services.

Human Machine Interface/Augmented Reality:

Augmented reality (AR) is an overlay of digital information onto the real world. In the case of automotive electronics, AR uses a dashboard-mounted camera to obtain images of the road ahead, then projects digital information—such as speed, navigation, fuel levels, and other important data—where the driver can easily view it without looking away from the road. These AR software systems are also customizable. If, for example, a driver prefers to see real-time traffic updates and navigation in AR but use traditional gauges for the speedometer and fuel usage, the system can easily accommodate those preferences.

Advanced Driver-Assistance Systems (ADAS):  

Cruise control is no longer enough for consumers. They are demanding adaptive cruise control, an advanced driver-assistance system that can automatically adjust speed to make sure a car maintains a safe distance behind another vehicle. Some other ADAS systems include lane departure warning, adaptive light control, automatic emergency braking, blind spot detection, driver drowsiness detection, and tire pressure monitoring.

A driver’s view of an augmented reality dashboard, in which information is projected in front of the driver.
Augmented reality uses a dashboard-mounted camera to superimpose digital information onto the driver’s view of the road.

In-Cabin Artificial Intelligence and Machine Learning:

In a step beyond ADAS, artificial intelligence is allowing new and upcoming car models to provide drivers with advanced monitoring, predictive maintenance, and personalized in-car experiences. More significantly, advances in AI are playing a crucial role in the evolution and increasing adoption of driverless vehicles.

Sustainability:

A Gartner study predicts that more than half of all vehicle models will be electric by 2030. The increasing popularity of these cars is due in part to consumer demand for more sustainable transportation. According to the EPA, electric vehicles have a smaller carbon footprint than their gasoline counterparts, even when accounting for the electricity required for charging, the mining of minerals for batteries, battery production, and battery recycling. Integrated microcontrollers (read more below) in next-generation cars can provide efficient power management in electric and hybrid vehicles—extending vehicle range and further reducing environmental impact.

Cybersecurity:

Progress almost always includes risks, and the advancements in automotive electronics are no exception. Since a software-defined vehicle can be accessed remotely, it is subject to the same malware attacks that have been common in corporate networks and with personal devices. Fortunately, according to Blackberry, there have been no publicized incidents of cyberattacks occurring outside of a controlled experiment. But as with other industries, cybersecurity remains a concern. A moving car suddenly losing its driving functionality—or worse, being controlled by someone other than the driver—is a catastrophic scenario that cannot be ignored. This is why car manufacturers are developing new anti-hacking protocols. Get ready for biometric access and multifactor authentication in future car models.

Two Technologies Behind Automotive Electronics

The trends above are made possible because of recent advances in both hardware and software technologies. And for cars, the two most significant advances are in the areas of printed electronics and microcontrollers.

Microcontrollers:

Microcontrollers—compact integrated circuits comprised of a processor, memory, and input/output peripherals—are found in many automotive parts and are essential to developing smarter, safer, and more connected vehicles. They perform various functions, often in real-time, such as braking, engine management, airbag control, power window operation, and infotainment tasks. The car industry has become a major user of these devices. According to Allied Market Research, a global provider of market intelligence, the automotive segment currently represents 25% of global microcontroller industry revenue. And this trend is expected to continue, driven by consumer demand for cars with increased comfort, safety, and entertainment options.

Flexible Electronics:

The advent of plastic and organic semiconductors has ushered in an era of thin, flexible electronic components. This new technology, combined with innovative designs that incorporate origami principles, is allowing car makers to offer more streamlined, driver-responsive interiors. And because flexible electronic components are also more cost-efficient, car manufacturers are now able to offer drivers greater convenience and improved aesthetics at a lower cost, which is why manufacturers like BMW are using this technology to reshape the car dashboard, integrating curved displays that unobtrusively provide essential information and control.

A close-up of a circuit that’s been printed onto a flexible material.
Flexible circuits enable car manufacturers to add curved displays to a vehicle’s interior.

The Future of Automotive Electronics

More and more, real-time automotive solutions are powered by software, saving car manufacturers both time and money while making vehicles more driver responsive. By further decoupling hardware and software functionalities, manufacturers will be able to make cars that are more hack-proof and easily controllable. They will be able to scale and adapt automotive electronics systems to improve safety, increase functionality, and release features faster to consumers. Today your image of a tech company may be limited to Microsoft or Apple. But with the self-driving vehicle, IBM predicts automotive OEMs will become software companies. Buckle up!

Automotive Electronics Design and Manufacturing Services

Our flexible, customized electronics manufacturing is supported by highly skilled engineers and driven by a commitment to quality and exceptional customer service. From streamlining product designs for greater efficiency, to high-precision manufacturing, to end-of-life product management, our team can help you get the most from your product’s lifecycle—whether you’re building a Class II medical device or a next-generation automotive component.
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Did you know that semiconductor manufacturing got its start in 1874? That’s the year a young physicist named Karl Ferdinand Braun touched a thin metal wire to a galena crystal, creating an electrical current that flowed in only one direction. He’d discovered the rectifier effect. But it wasn’t until 1947 that John Bardeen and Walter Brattain at Bell Laboratories invented the point-contact transistor. A year later, William Shockley developed the junction transistor. The work of these three American physicists was so significant that in 1956 they were jointly awarded the Nobel Prize. By then the semiconductor industry was growing rapidly, and with the invention of the integrated circuit in 1959, semiconductor manufacturing entered the modern era.

Since the late fifties, the demand for semiconductors has grown steadily, though the supply chain has experienced occasional hiccups, especially in recent years.

The Pandemic’s Effect on Semiconductor Manufacturing

The semiconductor supply chain was fragile even before the pandemic. The trade wars between the U.S. and China (beginning 2018) and Japan and Korea (beginning 2019) set the stage for what would be several years of supply chain turbulence in semiconductor manufacturing. The chip shortage escalated in the following years, fueled by natural disasters and weather disturbances at home and abroad, in addition to multiple semiconductor plant fires in Japan.

Then the pandemic hit.

Today it’s generally believed that the automotive industry was the sector that suffered most from pandemic-caused chip shortages. Less well known is the fact that—initially—the pandemic actually created a glut of chips destined for cars. That’s because, as lockdowns became common, workers holed up in home offices and let their cars idle. This decreased need for transportation, and the subsequent car manufacturing plant closures, led to decreased demand for semiconductors in the automotive industry.

At the same time, the rise in remote workers, at-home students, and other individuals stuck at home led to increased demand for notebooks, tablets, and entertainment devices like smart TVs and game consoles. Likewise, telecommunications providers and hyperscalers—large cloud service providers such as Amazon, Microsoft, and Google—needed more chips to keep up with the public’s increased demand for online work and entertainment. Fortunately, because of the downturn in the car industry, electronics companies were mostly able to get the semiconductors they needed by turning to the supply of “leftover” chips from the auto industry.

According to McKinsey & Company, 37 percent of the world’s semiconductors were manufactured in the United States in 1990. Three decades later, only 12 percent are. The result is that U.S. companies are now highly dependent on chips made abroad.

Black-and-white photo of William Shockley, Walter Brattain, and John Bardeen
In 1956, William Shockley, Walter Brattain, and John Bardeen were awarded the Nobel Prize in Physics for the invention of the transistor.

Eventually, however, lockdowns ended and the demand for cars took off. At that point, carmakers began buying all the chips they could get their hands on. Electronics manufacturers now had to compete with the auto industry for these essential components.

Chip Shortages Affect Electronics Manufacturers

The semiconductor shortage was further complicated by innovation. Even during difficult times, electronics manufacturers continued to develop new technologies, many of which relied on even more chips than their predecessors. Added to this increased need were several global factors. Geopolitical tensions spurred some countries to stockpile semiconductors. And extreme weather events negatively impacted the chip supply.

This global chip shortage affected manufacturers of all kinds of goods, from light switches, cell phones, and appliances, to medical devices and military equipment. Semiconductor manufacturing was experiencing unprecedented demand, just as hoarding and supply disruptions were growing. Prices rose accordingly.

And at this point, Congress stepped in.  

The Creating Helpful Incentives to Produce Semiconductors and Science Act (CHIPS Act)

According to McKinsey & Company, 37 percent of the world’s semiconductors were manufactured in the United States in 1990. Three decades later, only 12 percent are. The result is that U.S. companies are now highly dependent on chips made abroad. While the U.S. semiconductor industry still maintains high market share in sectors that are R&D intensive (electronic design automation and core intellectual property), activities that are more capital intensive (wafer fabrication and assembly, testing, and packaging) are largely concentrated in Asia.

Recognizing the importance of a stable domestic supply of semiconductors, in 2020 a bipartisan group of lawmakers introduced the CHIPS Act. Passed in July 2022, the goal of the CHIPS Act is to encourage companies to bring manufacturing back home to the United States.

Goals of the CHIPS Act

The CHIPS Act is a $280 billion spending package passed by Congress to support domestic semiconductor manufacturing. It also authorizes federal science agencies to pursue policies that encourage domestic production. Approximately $50 billion of the spending is earmarked for direct investments in semiconductor manufacturing. The rest will be used for R&D, engineering and math programs, workforce development, and tax credits to spur private investments.

The CHIPS Act has three main objectives: stabilizing the domestic supply chain of chips, boosting American economic competitiveness, and protecting semiconductors from sabotage during the manufacturing process.

Stabilizing the Semiconductor Supply Chain  

A manufacturer may have a reliable workforce, sufficient capital, and a well-constructed business plan. Yet without the essential components to manufacture products, business as usual will come to a grinding halt. Too many industries in the past several years experienced this scenario firsthand. By bringing semiconductor manufacturing back to U.S. shores, many uncontrollable supply chain variables—such as international politics and the effects of overseas natural disasters—can be eliminated.

Boosting America’s Ability to Compete  

The CHIPS Act includes financial incentives designed to entice American firms to increase their share of global semiconductor manufacturing. The Carnegie Endowment for International Peace predicts that these incentives will spur U.S. manufacturers to grow their capacity significantly. New funding may even encourage innovation in downstream industries such as advanced wireless devices and artificial intelligence.

New research and development initiatives are especially important for the industry, as Moore’s Law—which states that the number of transistors on a chip will double every 24 months—is slowing. Cramming more and more transistors into the same space is becoming increasingly difficult, and therefore more expensive. With the cost of fabrication rising and the number of firms with advanced technical expertise shrinking, the semiconductor sector is at risk of stalling out. This is the scenario that the CHIPS Act aims to avert.

While the CHIPS Act focuses on technology, a welcome companion to America’s bid to become more competitive is the increase of jobs on American soil. The Department of Commerce estimates that the semiconductor industry will need an additional 90,000 workers by 2025.

Reducing the Risk of Sabotage

Semiconductors are at risk for sabotage at several stages of production. For example, a hostile actor could alter manufacturing recipes or manipulate the sensors used for performance testing. After the manufacturing stage, security risks continue as chips are transported globally.

With the most reputable manufacturers—such as Intel, Taiwan Semiconductor Manufacturing Company (TSMC), and Qualcomm—the risk of sabotage is lower. These manufacturers have the resources to invest in security and a reputation to maintain with customers. The risk increases, however, with less reputable companies, especially those who are beholden to national governments overseas. These companies may willingly, or through coercion, partner with a government or private entity to commit sabotage.

By bringing semiconductor manufacturing back home—all facilities funded through the CHIPS Act must be located in the United States—it’s hoped that plants and products will be less vulnerable to sabotage. The assumption is that sabotage on a facility-wide scale will be harder to conduct under the watchful eye of U.S. counterintelligence officers and under U.S. laws, which give federal agents the power to investigate irregularities. Of course, every facility, no matter its location, remains vulnerable to remote cyberattacks and traditional espionage. But siting plants on domestic soil should reduce these risks considerably.

What is the Future of Semiconductor Manufacturing?

According to International Data Corporation (IDC), the semiconductor market declined slightly in 2023 as demand continued to stabilize. In 2024, the market is expected to fully recover, and IDC predicts an annual growth rate of 20 percent. Some of this growth will be due to the demand for more AI integration with personal devices, such as smartphones, PCs, and wearable devices.

AI integration and other demand factors aren’t just pushing manufacturers to increase production; these factors are also driving innovation in chip technology. As mentioned, it’s becoming increasingly difficult to improve transistor-based technology by packing more transistors into a tighter space. So now researchers are exploring an alternative approach: replacing conventional transistors with quantum-dot cellular automata (QCA), a new technology that relies on mixed-valence molecules.

Graphic representation of quantum-dot cellular automata
Quantum-dot cellular automata may soon replace transistors.

What are the advantages of QCA? According to a study published in the Journal of Computational Chemistry, QCA provides “a low-power computing paradigm that may offer ultra-high device densities and THz [terahertz]-speed switching at room temperature.”  While current traditional gigahertz technology processes at billions of cycles per second, terahertz technology is capable of trillions of cycles per second—1,000 times faster.

Emerging technology and consumers’ ever-growing demand for electronics will likely continue to fuel the rise in demand for semiconductors, making it more important than ever to ensure the supply chain is stable. Fortunately, with the support of the CHIPS Act, the outlook for a steady and reliable domestic supply is favorable. That’s good news for electronics manufacturers, who are now better positioned to keep their products in stock and competitively priced.

An Electronics Manufacturing Partner You Can Rely On

At PRIDE Industries, our U.S.-based, state-of-the-art facilities minimize your risk of supply chain disruption, optimize manufacturing and fulfillment processing, and provide flexible, on-demand inventory schedules. And our inclusive workforce—about 50 percent of our employees have a disclosed disability—means that working with us allows you to make a positive social impact with your business spend, while meeting consumer demand for products made in the USA.
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When chefs create a signature dish, it isn’t a willy-nilly process. If they want a consistent product every time, they must first develop a recipe—one that lists all the ingredients needed, quantities, and clear instructions for assembly. Electronics manufacturers are a bit like chefs. When building a product, they can’t just “wing it” and hope everything comes together correctly. They need a proper recipe for manufacturing, i.e., a well-developed bill of materials (BOM).

The Critical Functions of Your Bill of Materials

A robust bill of materials outlines the components and materials required to manufacture your product and provides instructions for assembling those items. It acts as a centralized source of information about your product’s design and constituent parts. A thorough and accurate BOM is especially important when multiple parties are involved in the manufacture of your product, in order to ensure effective communication and avoid manufacturing missteps. Sharing an outdated BOM with your contract manufacturing partner can lead to unnecessary mistakes and product launch delays.

Depending on your product and its specifications, you may need multiple BOMs, as they serve different purposes. Two of the most common types of BOMs are the engineering bill of materials (EBOM) and the manufacturing bill of materials (MBOM). These two types of BOMs work together in the following way:

Engineering Bill of Materials (EBOM)

An engineering bill of materials is a product recipe structured from the design standpoint. Typically created by engineers using computer-aided design (CAD) or electronic design automation (EDA) software, an EBOM states the exact quantities of each component inside the product but does not reflect all the materials consumed to make the product.

By laying out an easy-to-follow, detailed plan, your BOM makes the entire manufacturing process more efficient and accurate.

Two engineers, a man in glasses and a woman with long hair, looking at a laptop computer in an engineering lab
An engineering bill of materials (EBOM) lists the exact quantity of all materials contained in the finished product.

Manufacturing Bill of Materials (MBOM)

A manufacturing bill of materials is based on a product’s EBOM, but focuses on the manufacturing process itself. Whereas an EBOM is created with design in mind, an MBOM looks at the total amount of each input needed to bring a design to life. As an example, if your product requires 10 grams of aluminum, an EBOM would list only the 10 grams required in the finished product. But an MBOM would take waste into account, and note that making the product would in fact require, say, 11 grams of aluminum, with one gram lost to scrap during manufacturing. Note that because the MBOM is derived from the EBOM, if your figures are off in your EBOM, you will also have errors in your MBOM.

What to Include in a Bill of Materials

Almost all products will require a BOM for effective manufacturing and supply chain management. However, the level of detail provided by a BOM can vary based on the industry, the product’s complexity, or a third-party manufacturer’s requirements. BOMs for electronic products can be particularly complex, and will typically include all or most of the following 13 descriptors:

  1. Part Number: A unique identifier for each component.
  2. Part Name: A unique name for each part for easy identification.
  3. Description: Details about each part to ensure clarity.
  4. Quantity: The number of each component required for one unit of the product.
  5. Unit of Measure: The specific unit used for quantity, i.e., meter, pound, etc.
  6. Reference Designators: The specific locations on the product where each component is used—for example, where the part fits on your printed circuit board assembly.
  7. Materials: Information about the raw materials used for each component.
  8. Cost: The cost associated with each component, used to calculate total production cost.
  9. Suppliers/Procurement: Information about how each component is purchased or made, as well as the suppliers providing each component.
  10. BOM Level: An assigned number to detail where each part fits in the hierarchy of your multi-level BOM. For example, your product’s PCBA would be on one level, and the components of the PCBA would be on a more detailed level of the BOM hierarchy.
  11. Phase: Where each part is in the manufacturing process, i.e., in production, unreleased, or in design.
  12. Lead Time: The time required for each component to be delivered.
  13. Assembly Instructions/BOM Notes: Steps for putting together the final product and any other helpful guidance or information.

The Advantages of Using a Bill of Materials

By laying out an easy-to-follow, detailed plan, your BOM makes the entire manufacturing process more efficient and accurate. It can be a critical tool for optimizing these three aspects of your product’s manufacture:

Planning

A BOM will help you plan your material requirements as well as the purchase details of your product’s raw materials.  With an accurate estimate of material costs, you can reduce waste, as well as delays and other problems that can be caused by material shortages. Your BOM can even help you meet regulatory compliance requirements—a crucial benefit for highly regulated industries such as aerospace, defense, and medical technology.

Management

A well-structured bill of materials can help you control your budget through efficient inventory management. It will also help you maintain accurate records to stay alert to material shortages and allow for planned and unplanned downtime. With a good bill of materials, you’ll be less likely to encounter surprises and more likely to stay on schedule.

Process Improvement

There’s always room for improvement in your manufacturing processes, and a BOM can play an important role. The increased clarity a BOM brings can help you improve your supply chain security, identify the cause of a product failure, and find vulnerabilities in both hardware and software components. Identifying errors, vulnerabilities, and failures promptly will help you replace faulty components quickly—saving money and time and even preventing the failure of your product.

A heap of electronic components
Sloppy inventory management can lead to material waste.

Five Common BOM Management Mistakes

Time-to-market demands can make it tempting to cut corners with your BOM. But in the end, that approach will most likely lead to wasted time, lost money, and shortages of essential parts. As you prepare your BOM, make sure you don’t fall victim to any of these five common mistakes:

Missing Components

Important components or parts are inadvertently omitted from a BOM in multiple ways. Data loss during export is the most common one. Another path to inaccuracy is human error: designers and engineers can forget to add essential components to the list, or team members may incorrectly enter data. This is why clear communication among product teams is so important. The better your company’s teams collaborate—and any third-party partners—the more likely you are to catch these errors at an early stage when the cost and effort to fix them is minimal.

Costing and Component Mistakes

Ideally, components and their costs should be checked early in the planning stages. Not only is choosing the wrong component costly, it can also lead to the failure of your product. Here’s where an experienced electronics manufacturing service (EMS) provider can make a real difference, as it can identify and source well-priced, quality components and alternative ones, just in case.

Inadequate Documentation

While a list of your parts and sub-components is essential to a BOM, it’s not enough. It’s also important to include the documentation needed to support the manufacturing process, such as material specifications, assembly instructions, or safety information. Failing to include adequate documentation could result in increased safety risks, decreased product quality, material waste, and lost revenue.

Quantity Mistakes

No one wants to have production come to a standstill over missing parts. Likewise, no one wants to pay for and store ten times the needed inventory simply because an errant 0 got tacked on to an order quantity. Miscalculations, data entry errors, and sloppy inventory management can all lead to quantity mistakes. Multiple reviews of your BOM by multiple sets of eyes can help avoid these errors. Likewise, product lifecycle management software can help eliminate these BOM mistakes.

Insufficient Coordination with Your EMS Provider

With proper coordination, your EMS provider can save you time, money, and hassle. But to reap these benefits, thorough and accurate communication is critical. Ask your EMS provider about their preferred BOM format. Do they prefer Excel (or at least an Excel-friendly file)? Do you both share the same product lifecycle management software? If the BOM you provide your partner is just text or graphic, they will likely need to manually enter your data into their system—an extra step that could create data integrity issues.

Your Recipe for Success

With a thorough BOM that leverages the advantages above and avoids common mistakes, you are well on your way to creating a customer-pleasing product. Communication with your partners will be smooth and efficient, and production delays will be minimal. Best of all, by taking the time to create a refined, robust BOM, you’ll have a recipe for manufacturing a high-performing product.

Your Smart Manufacturing Partner

Are you looking for an electronics manufacturing partner to help you design a more efficient product, streamline your supply chain, and improve your production processes? Whatever your needs and priorities, PRIDE Industries can help you reach your manufacturing goals.
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The overall forecast for the medical device industry is overwhelmingly positive, with an expected global revenue of $595 billion in 2024. The healthcare sectors driving the most growth in the medical device market are:

  • Cardiovascular
  • Orthopedic
  • Neurovascular
  • Urological
  • Diabetes

The growing prevalence of chronic disorders—including cancer, diabetes, and infectious diseases—is driving an increase in diagnostics, testing, and monitoring that not only calls for more medical devices but also greater product innovation. Here are the top six medical device industry trends of 2024.

Trend #1: A Rise in Digital Therapeutics and At-Home Diagnostics

The popularity of digital therapeutics (software-based medical devices) skyrocketed during the pandemic and shows no signs of slowing down. These devices are typically AI-based and used by clinicians to virtually treat, manage, and prevent a wide array of diseases and disorders. The U.S. market for digital therapeutics is anticipated to have a compound annual growth rate of 29.8% between 2020 and 2025.

Like digital therapeutics, at-home diagnostics empower patients to take their health into their own hands, but the latter are designed specifically to diagnose potential conditions or diseases. Many people have become accustomed to at-home testing for the COVID-19 virus, and there are opportunities for at-home diagnostics beyond COVID testing. We will likely see increased proliferation and adoption of these self-tests to assess a variety of health conditions. This trend is directly related to the second trend we anticipate for 2024.

The growing prevalence of chronic disorders is driving an increase in diagnostics, testing, and monitoring that not only calls for more medical devices, but also greater product innovation.

A closeup of a woman in a tank top, with diagnostic leads on her chest that are attached to a monitoring device she’s holding
At-home diagnostic devices allow a doctor to diagnose illness and assess a patient’s health remotely.

Trend #2: Increased Adoption of Biometric Devices and Wearables

Advances in circuit miniaturization have enabled companies in the medical device industry to develop a wider variety of wearables and biometric devices, allowing them to take advantage of the growing demand for remote patient monitoring (RPM). RPM technologies track patients’ vital signs and deliver data in real time. This fosters better healthcare delivery through non-invasive diagnosis, treatment, and accurate prognoses in medical emergencies. The recent uptick in alternative data investments, like real-world data, provides healthcare companies with more information on human biometrics, further accelerating growth in the wearable space. The healthcare areas currently leading wearable adoption are audiology, health science, kinesiology, nursing, occupational therapy, pharmacy, and physical therapy.

The increasing popularity of biometric and wearable devices will see more players in the medical device industry procuring electronics manufacturing services (EMS) with engineering teams. After all, as manufacturing processes become more complex and we move into the era of the smart factory, in-house engineering teams will give EMS providers a competitive advantage by enabling them to improve production velocity and quality.

Trend #3: Greater Focus on Sustainability and ESG Goals

The healthcare industry generates over 4.6 percent of greenhouse gas emissions globally. The medical device industry is a top contributor within that space due to supply chain emissions, single-use devices, and consumables. So, it’s no surprise that regulators and investors are calling for medical device manufacturers to reduce the environmental impact of their products and prioritize sustainable practices throughout their product development and manufacturing processes.

The medical device industry is increasingly embracing environmental, social, and governance (ESG) priorities and implementing comprehensive sustainability initiatives to move toward carbon neutrality. When EY surveyed life sciences CEOs, nearly 80 percent planned to adjust their global operations or supply chains to address sustainability concerns. Around 55 percent reported that M&A will be a key strategic play to gain ESG expertise and boost sustainability.

To meet their ESG goals, more medical device manufacturers are adopting design for sustainability (DFS) best practices. DFS considers a product’s environmental, economic, and social impacts throughout its entire lifecycle, and promotes the development of devices that can be easily recycled. This is especially important as the reprocessing of medical devices has been shown to greatly minimize medical waste—reducing hospital costs by up to 50 percent and cutting ozone depletion by almost 90 percent.

Trend #4: Generative AI for Medical Device Industry 4.0

No trends list for 2024 can exclude AI—ours sure doesn’t. Like so many other industries during the global pandemic, the medical device industry was deeply impacted by supply chain challenges. Since then, the sector has been pursuing ways to streamline factory operations and manufacturing processes. Generative AI, which enables machines to autonomously create and innovate, is fast emerging as a preferred tool for increasing efficiency.

Used in combination with digital twins (virtual replicas of physical assets or systems), generative AI is allowing manufacturers to quickly analyze vast amounts of data and create highly accurate models of their supply chain processes, manufacturing constraints, and factory operations. These simulations are powerful for mitigating risk, predicting maintenance needs, and optimizing design, manufacturing, and distribution processes.

Trend #5: Increased Medical Device Industry Cybersecurity Controls

The explosion of smart, connected medical devices has prompted the medical device industry to adopt the multi-layered cybersecurity best practices that are common in other industries. And with the passage of the Consolidated Appropriations Act of 2023, the FDA is now required by law to include cybersecurity in its review of medical devices that contain software and connect to the internet, such as heart defibrillators and continuous glucose monitors (CGMs).

This federal oversight of medical device security is considered critical for the safety of patients and the protection of their personal information. And to deliver on its new mandate, the FDA is now required to update its cybersecurity guidance every two years, which means device manufacturers will have to keep up to ensure premarket submissions are acceptable.

Guiding principles found in the FDA’s cybersecurity guidance to manufacturers include the following:

  • Cybersecurity is part of device safety and quality system regulations (QSR). This may be satisfied through a Secure Product Development Framework (SPDF) that encompasses all aspects of a product’s lifecycle, including development, release, support, and decommission.
  • The FDA will assess the adequacy of a device’s security based on the device’s ability to provide and implement the following security objectives throughout the system architecture:
    • Authenticity, which includes integrity
    • Authorization
    • Availability
    • Confidentiality
    • Secure and timely updates and patches
  • Device users must have access to information pertaining to the device’s cybersecurity controls, potential risks, and other relevant information for maximum transparency.
  • Device cybersecurity design and documentation are expected to be commensurate with its risk. For example, if a thermometer is used in a safety-critical control loop, or is connected to networks or other devices, then the cybersecurity risks for the device are greater, and submissions should include more substantial design controls and documentation.

Trend #6: 3D Printing Improves Medical Device Design

Technological advancements in 3D printing, increased investment, and growing use cases for 3D printing in the medical device industry are driving the rapid growth of this technology. One recent analysis found that the market for 3D printed medical devices will reach $6.9 billion by 2028. Medical devices that can be 3D printed include external wearable devices, clinical study devices, implants, and even tissues.

For medical device manufacturers, 3D printing is an opportunity to produce more personalized products, like prosthetics. More specifically, medical device companies can use 3D printing to integrate anatomical and pathological structures in the design of their products, enabling a customized fit. 3D printing is also more cost-effective for manufacturing. 3D printing individual parts on site can reduce energy consumption from manufacturing, storing, and shipping parts by as much as 64 percent, according to researchers at Michigan Technology University.

A 3D printer making an artificial hand
3D printing enables greater customization of prosthetics and other medical devices.

3D printing also enables the rapid prototyping of medical devices, allowing manufacturers to quickly test designs for manufacturability and performance, narrowing the demand-supply gap. For example, life sciences company Fluicel uses Biopixlar high-res 3D printing technology to produce biocomposites that mimic the insulin-producing function of the pancreas, enabling the company to test a new product for treating Type 1 Diabetes accurately.

Your Medical Device Industry Manufacturing, Logistics, and Shipping Partner

Are you looking for a medical device manufacturing partner to help your company stay ahead of industry trends? At PRIDE Industries, our trained engineers will customize a turnkey manufacturing solution for your unique product, and our ISO 13485-certified facilities will provide you with state-of-the-art medical device manufacturing technology. Count on us to deliver your product quickly, cost-effectively, and built to the highest quality standards.
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The third-party logistics (3PL) business—the practice of outsourcing all or part of warehousing, inventory management, shipping, receiving, picking, and packing, kitting, and reverse logistics (returns)—is booming.

According to Market Research Future (MRF) the global 3PL market is projected to double in just seven years, growing from $1 trillion in 2021 to nearly $2 trillion in 2028—a clear sign of how many companies are turning to this valuable service.  While less than half (46 percent) of Fortune 500 companies operating in the United States had a 3PL partner two decades ago, now a staggering 90 percent of those companies utilize these services, according to supply chain consultancy Armstrong and Associates. As companies compete to deliver products as efficiently as possible, the growth of third-party logistics will likely continue.

Ten Benefits 3PL

The benefits of turning to a third party for logistics management vary across industries, and even from one company to the next. That said, there are at least ten reasons why just about any company that delivers physical products can benefit from a strong logistics partner.

1. Cost Savings

There are multiple ways a 3PL partner can save you money. One way is by reducing shipping costs through shared transportation services; your third-party partner can negotiate volume discounts by combining the shipping needs of various suppliers and manufacturers. Another way to save is on capital outlay. When companies try to do everything in house, they incur a fixed cost for equipment and infrastructure, irrespective of volume. However, with a 3PL partner, the cost of transaction processing generally tracks with the volume processed—if volume drops, so do transaction costs. Another area where a third-party partner can save you money is in labor costs. The right partner can attract and retain the best people all year round. This means your company always has access to skilled labor, and you only pay for that labor when you need it.

2. Scalability

While less than half (46 percent) of Fortune 500 companies operating in the United States had a third-party logistics (3PL) partner two decades ago, now a staggering 90 percent of those companies utilize these services.

Photo of warehouse with empty shelves
When you lease space independently, you may find yourself paying for empty shelf space “just in case.”

New product launches, recalls, and market changes are a few of the reasons that demand for a product can fluctuate. Growth is often unexpected. When you lease warehouse space independently, there’s always the risk of running out of room—or just as bad—paying for empty shelf space “just in case.” A third-party partner offers the ability to adapt to change quickly and easily, without the need for significant investment in infrastructure or labor. This flexibility can be especially beneficial if your product is seasonal or if demand for it naturally ebbs and flows.

3. Inventory Management

An experienced third-party partner will use demand planning to keep track of multiple important factors—such as lead times, historical data, market trends, and even external factors like oil prices and the weather—to help you react in real time. Your partner will then combine that planning process with their robust supply chain connections to make sure your product is available and ready to be delivered at the right time to your customers.

4. Focus on Core Competencies

It’s hard to focus on innovation if you’re plagued with shipping woes and packaging nightmares. If your employees are spending countless hours sourcing raw materials, product development may become less of a priority. Using an external partner frees your company focus on its core competencies and leave the logistics details to someone else. Focusing on what you do best, such as R&D and product innovation, can lead to increased productivity—as well as less stress and hassle for all involved.

5. Expertise and Industry Knowledge

The right 3PL partner will understand your industry, have all necessary certifications and registrations, have access to the latest technology, and implement industry best practices. For example, aerospace companies with federal contracts require a third-party partner with ITAR-registration and strict adherence to NIST standards. Medical device manufacturers, for example, have little room for error. Therefore, they benefit most from a partner with expert technicians who know how to eliminate defects using the latest in automated optical inspection (AOI) and 2D/3D X-ray technology. And a microelectronics company needs a partner with ESD flooring, to protect electronics from static electricity. Whatever your industry, the right partner, working with the right tools, can make sure your products get to your customers on time and in optimal working order.

6. Decreased Supply Chain Risk

The right supply chain services partner will know how to source quality parts and materials at a competitive price. In fact, the right partner can often show you how to swap custom parts for readily available standard components, reducing your supply chain risk. During the pandemic, for example, the ability to switch to a comparable component when the original was suddenly unavailable often meant the difference between bankruptcy and staying in business. And though the supply chain has improved considerably since then, disruptions persist, making this service just as critical as ever.

7. Increased Supply Chain Efficiency

Photo of electronic components
The right third-party logistics partner will know how to source quality parts and materials at a competitive price.

A good 3PL partner will also know how to increase your supply chain efficiency. For example, a savvy partner will evaluate your supply chain and help you decide where automation will—and will not—add efficiency and cost savings. The right technology can track where your finished product is in transit, when the customer receives it, and in what condition it was received. New IIoT technology can also provide real-time tracking with notifications to all stakeholders across the supply chain.

8. Testing and Inspection Protocols

Electronics products—such as aerospace technologies, medical devices, and consumer gadgets—are subject to stringent regulations and quality standards. A strong 3PL partner will have the needed certifications, registrations, inspections, and testing procedures in place for these sensitive products. A partner who knows what tests need to be performed—and when—will save everyone time, money, and hassle. For example, the right partner knows to inspect a solder paste print before the assembly is soldered in the reflow oven. Likewise, an experienced partner should have SMTA-Certified SMT Process Engineers in-house to ensure best-in-class manufacturing.

9. Sustainability

Once your product reaches the end of its life, what can you do? More and more customers are now holding manufacturers accountable for disposing of unneeded materials in a way that is friendly to our planet. Fortunately, the right third party partner can help with recycling or refurbishment—helping you meet your sustainability goals. And the end of a product’s life isn’t the only time a 3PL partner can help you reach these targets. An expert third-party logistics team can also help you design a product that’s easily recycled at the end of its life, so that its components can be sold in the secondary market, creating another revenue stream for your company.

10. Returns and Reverse Logistics

Even the best company will need to deal with returns, i.e., have a plan for reverse logistics. Just as it sounds, reverse logistics is the process of returning goods back to their point of origin. The treatment of a returned product, however, can vary depending on circumstances. For example, if products must be returned due to a recall, there are required processes for alerting customers as well as receiving the products. Likewise, you need a plan for any recalled products that have not yet shipped.

You also need a plan for products returned for other reasons, such as repair or end-of-life support. A 3PL partner that is familiar with proper IT Asset Disposition (ITAD) is especially important. To keep critical company data protected, disposing of sensitive IT devices requires more than simply recycling. The right partner will know how to first “wipe” the equipment and remove all asset tags—ensuring that no proprietary data can be leaked and that the devices can no longer be tied back to your organization.

Choosing a 3PL Partner Wisely

Developing a long-term relationship with a reliable third-party logistics provider can yield benefits for decades. A product may be selling nicely, and then you run into production difficulties and need a more agile supply chain. Or a custom part may be out of stock and unavailable for an extended period, and you suddenly need a more available replacement. These are examples when a resourceful, experienced 3PL partner can be invaluable. When searching for a 3PL partner, be sure to choose one that can provide a wide range of services and high-quality assistance.

A 3PLPartner You Can Rely On

PRIDE Industries offers supply chain management, kitting and fulfillment, reverse logistics, and other business services to emerging and Fortune 500 companies. And our inclusive workforce—about 50 percent of our employees have a disclosed disability—means that working with us also allows you to make a positive social impact with your business spend.
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