Incap Electronics US: Innovating for Growth in a Dynamic EMS Market

As we look ahead to 2025, Incap Electronics US navigates a rapidly transforming Electronics Manufacturing Services (EMS) market in North America. Situated in the California Technology Park near Pittsburgh, Pennsylvania—a region known for its manufacturing expertise—Incap US is well-positioned to meet the demands of a growing industry. With a focus on innovation, sustainability, and market leadership, Incap Electronics US is committed to driving growth and delivering value as part of Incap Corporation’s global operations.

From regional specialist to global partner

Founded in 1999 as Pennatronics, they quickly  established themselves as a reliable partner for electronics manufacturing solutions, offering services such as PCB assembly, box-build integration, and engineering support. Over the years, the company has built long-term partnerships with customers across diverse industries such as medical devices, industrial automation, and emerging technologies. This expertise and local knowledge made Incap US an important addition to Incap Corporation’s global portfolio.

In July 2023, Incap Corporation acquired 100% ownership of Pennatronics. This acquisition expanded Incap’s global footprint, which now includes advanced facilities in the UK, India, Estonia, Slovakia, and the United States. By integrating Incap US into its global network, Incap Corporation has further enhanced its ability to serve customers with diverse and complex supply chain needs. “Becoming part of Incap’s global operations has enabled us to leverage international expertise while maintaining the agility and flexibility that our customers value,” says David Spehar, Managing Director of Incap Electronics US.

The acquisition aligns with Incap Corporation’s strategy to grow both organically and through mergers and acquisitions. North America, with its expanding EMS market, presents significant opportunities, and Incap intends to continue exploring potential acquisitions to strengthen its presence in the region.

Navigating market dynamics in a growing industry

The North American EMS market is on a steady growth trajectory, projected to expand from approximately $177 billion in 2025 to $223 billion by 2030, driven by a compound annual growth rate (CAGR) of 5.3%. This growth is underpinned by key trends such as nearshoring, the rise of electric vehicles (EVs), and increased demand for high-complexity electronics.

Nearshoring has gained significant traction as companies aim to mitigate supply chain risks and reduce logistical costs. Many manufacturers are shifting production closer to their primary markets, favoring the US and Mexico for their established infrastructure and skilled workforce. This trend presents Incap US with an opportunity to serve customers seeking localized, responsive solutions for their manufacturing needs.

The EV sector is another key driver of growth. As automakers push for innovation in electric and autonomous vehicles, the demand for advanced electronic components—such as sensors, communication modules, and battery management systems—continues to rise. Incap US’s expertise in precision engineering and high-complexity manufacturing positions it to play a vital role in this transformation.

However, the industry is not without challenges. Talent acquisition and retention remain pressing issues, particularly as the EMS sector becomes more competitive. Additionally, the need for enhanced IT and shop floor control systems requires ongoing investment. Addressing these challenges is essential for maintaining operational efficiency and meeting customer expectations.

Strategic focus for 2025 and beyond

Incap Electronics US’s strategic focus centers on three key pillars: operational excellence, sustainable growth, and customer-centric innovation.

Operational excellence: Investments in advanced manufacturing technologies are critical to maintaining a competitive edge. Incap US is upgrading its SMT lines, implementing new software systems, and exploring opportunities for a greenfield site near key clients. These enhancements aim to improve production efficiency and ensure scalability to meet rising demand.

Sustainable growth: Incap Corporation’s commitment to sustainability extends to its US operations, where initiatives such as solar installations and energy-efficient processes are being prioritized. Sustainability is not just an ethical imperative but also a strategic advantage as customers increasingly value environmentally responsible practices.

Customer-centric innovation: Incap US remains focused on tailoring solutions to the unique needs of its clients. Whether it’s delivering small-batch prototypes or scaling production for high-complexity products, the company’s agility and flexibility set it apart in a competitive market.

Looking ahead, Incap US also plans to strengthen its role as a regional hub for Incap Corporation’s North American operations. "Expansion into tech-centric regions across the U.S. is being explored, aligning with the growth of industries like EVs and high-tech manufacturing, while also considering areas that offer favorable business climates, skilled labor, and access to key markets, making them strategic targets for future development," adds Spehar.

The growing trend of local content requirements (LCRs) is creating opportunities for Incap US to support high-volume production needs in North America. Collaborations with Incap’s facilities in India also enable the company to offer cost-effective solutions for large-scale projects, enhancing its competitive positioning.

On the flip side, competition within the EMS sector remains fierce. Companies must continually innovate to keep pace with advancements in automation, digital transformation, and product complexity. Additionally, economic uncertainties and fluctuating material costs can impact profitability. To overcome these challenges, Incap US is leveraging its global network to share best practices, optimize processes, and deliver consistent value to its customers.

A vision for 2025

As part of Incap Corporation’s global strategy, Incap Electronics US is committed to adapting to industry changes while leading innovation in the EMS sector. “We are not just responding to market trends—we are helping shape them,” says Spehar. “Our integration into Incap’s global network has provided us with the tools and resources to exceed our customers’ expectations and drive progress across the industry.”

Incap’s focus on growth, sustainability, and innovation ensures it is well-positioned to meet the demands of a rapidly evolving market. By fostering long-term customer relationships, investing in cutting-edge technology, and expanding its geographic footprint, Incap Electronics US aims to set new benchmarks for excellence in electronics manufacturing.

As the EMS industry continues to grow, Incap US remains steadfast in its mission to deliver agile, flexible, and efficient solutions that drive value for customers and contribute to the success of Incap Corporation’s global operations.