Unveiling the True Cost of Custom Electronics Assembly in the US
If you're sourcing or designing custom electronics, understanding cost drivers can help you avoid budget overruns.
- US PCB assembly costs are 2-5x higher than overseas but offer better quality, speed, and communication.
- Labor, materials, and design decisions are your biggest levers for cost control.
- Smart design (DFM), strategic sourcing, and avoiding expedite fees can cut costs by up to 35%.
- US EMS providers excel in regulated, high-mix, and fast-iteration environments.
Why Cost Understanding Matters
Custom PCB assembly involves many cost factors: labor, material, design, volume, and lead time. In the US, these are amplified by high wages, quality standards, and regulatory compliance. This guide helps you manage these drivers to balance cost, quality, and speed.
Key Cost Drivers:
- Labor: US labor is significantly more expensive, but delivers better communication and faster iterations, which is ideal for low-volume, high-mix projects.
- Assembly Method (SMT vs. THT): SMT is automated and cost-effective for volume; THT is labor-intensive and costlier. Minimize THT or use selective soldering where needed.
- Material Costs: Complex components and premium substrates raise costs.
- Design Complexity: Design choices like board size, via density, and tight tolerances increase both labor and material costs.
- Production Volume: Setup costs are fixed - batching larger runs reduces per-unit cost.
- Lead Times: Expedites can raise costs 30-35% through overtime, rush logistics, and rescheduling.
- Testing and QA: Testing (AOI, X-Ray, functional) prevents expensive rework and ensures compliance. It's essential, not optional.
Why Choose US Manufacturing
Despite higher prices, US-based EMS providers offer faster iteration, compliance assurance, clearer communication, and IP protection. This is especially valuable for medical, aerospace, or regulated products.
Case Example:
A medical device startup chose a US EMS over a cheaper overseas option. Though unit cost was higher, they avoided $5,000 in rework and launched three weeks earlier thanks to better support and faster iterations.
Conclusion
To control custom electronics assembly costs:
- Engage EMS partners early
- Use DFM to simplify designs
- Choose components and materials strategically
- Consolidate builds
- Avoid expedite fees through better planning
- Evaluate total value - not just price
6 smart ways to cut costs:
- Apply DFM early
- Standardize parts and materials
- Favor SMT over THT
- Batch production to lower unit cost
- Plan for standard lead times
- Choose EMS partners based on total value, not just price
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