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Process Changes in Manufacturing to Boost Demand for Reflow Soldering Equipment Market - New analysis from Frost & Sullivan North American Reflow Soldering Equipment Market, reveals that revenues in this industry totaled $41.3 million in 2005 and estimates to reach $68.1 million in 2012.
Process Changes in Manufacturing to Boost Demand for Reflow Soldering Equipment Market

 

PRZOOM - /newswire/ - Palo Alto, CA, United States, 2006/08/22 - New analysis from Frost & Sullivan North American Reflow Soldering Equipment Market, reveals that revenues in this industry totaled $41.3 million in 2005 and estimates to reach $68.1 million in 2012..

   
 
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Despite lower wages and price pressures from overseas competitors, the reflow soldering equipment market in North America has bounced back owing to the adoption of lead-free solder paste. Quality has always been the mainstay of machinery manufactured in this region and continued product enhancements have helped in drastically improving operational costs as well as machine down time. These, along with transition to lead-free compatible equipment, have been the reasons behind the resurgent sales of reflow soldering equipment.

New analysis from Frost & Sullivan North American Reflow Soldering Equipment Market, reveals that revenues in this industry totaled $41.3 million in 2005 and estimates to reach $68.1 million in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the North American reflow soldering equipment market, then send an email to Tori Foster, Corporate Communications at tori.foster[.]frost.com with your full name, company name, title, telephone number, fax number and email. Upon receipt of the above information, an overview will be sent to you by e-mail.

“In a mature market like reflow soldering, significant changes can mostly be attributed to the occurrence of process changes,” explains Frost & Sullivan Research Analyst Deepa Mathew. “Complying with Restriction of the Use of Hazardous Substances (RoHS) guideline has created a pressing and immediate need for compatible equipment that can withstand the new process parameters, thus boosting market growth.”

The new lead-free paste has higher reflow temperatures, which the current equipment cannot handle. In order to comply with the RoHS deadline by Jul. 1, 2006, assemblers had to upgrade their equipment by investing in new reflow ovens engineered to withstand higher temperatures and have better control over the soldering process.

A significant factor challenging the market is increased competition from low cost nations particularly from the Far East such as China and Taiwan. Since the shift of high volume surface mount technology (SMT) assembly to these geographies, local manufacturers in these regions have introduced reflow equipment. This equipment with lowered pricing is a hurdle even to well-established vendors located in Europe and North America.

“With outsourcing becoming a trend to reduce manufacturing costs, China and Taiwan have emerged as the major hub of large volume SMT assembly,” explains Mathew. “Equipment suppliers face severe price pressures from these overseas competitors and the average price of reflow equipment has fallen dramatically over the past years, owing to the threat from these low cost countries.”

Educating the customer about the cost of ownership of the equipment can contain the threat of low pricing. Rather than considering the initial investment price as the only criteria, customers should be aware of other related costs as well. In case the machine is non-functional, operational and opportunity costs can add up to a sizeable sum. Machine maintenance along with power and nitrogen consumption are additional costs for the assembler.

North American Reflow Soldering Equipment Market is part of the Surface Mount Technologies (E&S) subscription and it evaluates the market drivers, restraints, industry challenges and includes strategic recommendations. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

North American Reflow Soldering Equipment Market
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Process Changes in Manufacturing to Boost Demand for Reflow Soldering Equipment Market

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