July 30, 2010 08:00 ET

Riverwood Survey of Senior Operations and Supply Chain Professionals Reflects Improving Economic Conditions and Substantial Hiring in a Highly Constrained Supply Chain

Ron Keith, Riverwood CEO, Will Present Survey Results & Implications via Webinar, August 10, 2010

MENLO PARK, CA--(Marketwire - July 30, 2010) -  Riverwood Solutions, the innovator in managed supply chain services and operations consulting, today announced it will host a Webinar to review the results of its 2010 OEM Survey and its implications for the OEM & EMS industry. The 2010 survey of senior operations and supply chain professionals covers OEMs ranging in size from $1 million in annual sales to over $100 billion. Survey respondents spent more than $100 billion in the global electronics supply chain in calendar year 2009.

Some key findings from this year's survey are:

• The overwhelming majority of OEMs plan to expand their staff in the areas of operations and supply chain management in 2010, with more than 72% of OEMs reporting hiring plans vs. just 29% this time last year. 

• 54.5% of OEM respondents indicated that they were likely to investigate or implement a major new operations tool such as an ERP, MES, or OMS system in the coming year up from just 23.5% in 2009.

• The survey data show that the majority of OEMs plan to engage an ODM on a new program in 2010 with more than 72% reporting they will engage on new programs in 2010, vs. just 35% last year.

• However, an overwhelming majority of OEMs are more concerned with supply disruptions having a significant impact on their product shipments in the coming quarters. More than 68% of respondents reported being concerned that their product shipments may be "seriously impacted" due to unforeseen supply events vs. less than half of respondents expressing this concern in 2009, likely reflecting the dramatic increase in constrained supply year over year.

• Despite this turbulence, 38% of the OEMs surveyed say they are satisfied with the value they receive from their EMS partner, up from only 19% last year.

"Our 2010 OEM survey results clearly indicate that the global economic climate has dramatically improved over last spring," said Ron Keith, CEO of Riverwood Solutions. "Last year more than 35% of OEMs expressed concern that their EMS supplier(s) may have difficulty meeting product commitments due to financial difficulty. One year later the number of OEMs expressing that same concern has dropped to fewer than 5%, a clear sign that most OEMs believe the worst of the economic downturn is over." 

"The results of Riverwood Solutions' OEM survey are consistent with the trend SMTC has been experiencing over the past few quarters," said Steve Hoffrogge, Senior Vice President, Business Development of SMTC (NASDAQ: SMTX). "We have seen a majority of our customers increase demand starting in the second half of 2009 and continuing through Q2 2010." Hoffrogge continued: "The trend of increased customer demand and a constrained material supply environment is likely to continue to present challenges in the second half of 2010. However, we are encouraged by the much improved overall economic environment and increasing new customer opportunities as OEMs reassess their current outsource strategies and supplier partnerships."

Ron Keith, Riverwood CEO, will present the survey results & implications in a Webinar entitled: "OEM Supply Chain Vantage Point 2010." The Webinar will be held Tuesday, August 10 at 11AM Pacific Daylight Time and will cover:

• Supply chain executive perspective and intentions in 2010
• Supply chain executive concerns for 2010 and evolution from 2009
• Implications for EMS and OEM participants in the market
• Questions & discussion

To register for the Webinar, go to: www.rwsops.com or register directly at: https://www1.gotomeeting.com/register/552548417. Attendance is free. 

About Riverwood Solutions

Riverwood Solutions (www.rwsops.com) is an operations consulting and managed services provider that helps OEMs design, implement and manage cost-effective, highly responsive supply chains. Riverwood's team of OEM and EMS (electronic manufacturing services) industry veterans has negotiated more than $7.5 billion in global supply agreements and launched nearly 200 products in 20 countries for numerous brand owning enterprises. The company's HOST℠ (Hybrid Outsourced Services Team) model provides clients at any stage of supply chain maturity with skilled project management in the world's innovation centers and in-country operations and supply chain expertise in the world's leading manufacturing centers. Riverwood's unparalleled experience, proven processes and unique model allow OEMs to implement and manage more responsive supply chains at a lower total cost with a long-term partner whose financial goals are aligned with their own.

Headquartered in Menlo Park, Calif., Riverwood (www.rwsops.com) has offices in Dallas Texas, Guadalajara, Mexico, Stockholm, Sweden, and Shenzhen, China.

About SMTC Corporation

SMTC Corporation, founded in 1985, is a mid-size provider of end-to-end electronics manufacturing services (EMS) including PCBA production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, sustaining engineering and supply chain management services. SMTC facilities span a broad footprint in the United States, Canada, and Mexico, and a partnering relationship in China, with over 1,500 full time employees. SMTC services extend over the entire electronic product life cycle from the development and introduction of new products through to the growth, maturity and end-of-life phases. SMTC offers fully integrated contract manufacturing services with a distinctive approach to global original equipment manufacturers (OEMs) and emerging technology companies primarily within industrial, computing and communication market segments.

SMTC is a public company incorporated in Delaware with its shares traded on the Nasdaq National Market System under the symbol SMTX and on the Toronto Stock Exchange under the symbol SMX. For further information on SMTC Corporation, please visit our website at www.smtc.com