Electronics Assembly & PCB Manufacturing

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Startup Cost
$120,000-$600,000
Difficulty
Advanced
Time to Profit
18-30 months
Profit Potential
$150,000-$750,000/year

Overview

Electronics assembly services provide PCB assembly, product assembly, and electronics manufacturing for hardware startups and companies outsourcing production.

With IoT and electronics products growing and companies seeking US-based manufacturing, assembly services generate revenue of $300,000-$900,000 annually with profit margins of 25-40% through assembly contracts and production runs.

The business requires SMT assembly equipment (pick-and-place machines, reflow ovens), testing equipment, ESD-safe workspace, and trained technicians.

Services include PCB assembly (SMT and through-hole), electronics testing, product assembly, programming, and packaging.

Pricing typically includes setup fees ($500-$5,000) plus per-unit assembly costs.

Success factors include quality assembly, testing capabilities, flexibility for prototypes to production volumes, and component sourcing assistance.

Minimum quantities typically 50-500 units for prototypes, 1,000+ for production.

Common clients include hardware startups, IoT device companies, industrial equipment manufacturers, and medical device companies.

Marketing focuses on demonstrating assembly quality, testing capabilities, and US-based manufacturing advantages.

With electronics manufacturing returning to US in 2025 and hardware startups launching products, electronics assembly offers opportunities for entrepreneurs with electronics expertise willing to invest in assembly infrastructure.

Required Skills

  • PCB assembly (SMT and through-hole)
  • Electronics testing and troubleshooting
  • IPC standards and quality control
  • Component sourcing and inventory
  • ESD safety and clean room practices
  • Production process optimization

Pros and Cons

Pros

  • Growing US electronics manufacturing
  • Hardware startup ecosystem
  • High-value production contracts
  • Prototyping to production opportunity
  • Technical specialization premium

Cons

  • Expensive assembly equipment
  • Technical expertise requirements
  • Component sourcing challenges
  • Quality control liability
  • Competition from offshore assembly

How to Get Started

  1. Acquire electronics assembly skills and certifications
  2. Purchase assembly and testing equipment
  3. Set up ESD-safe production facility
  4. Market to hardware startups and manufacturers
  5. Start with prototype assembly projects
  6. Build reputation for quality and reliability
  7. Scale to production volumes and automation

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