Manufacturers exposed to RoHS risk

Eric Karofsky, senior analyst for Boston-based AMR Research , says U.S. manufacturers are woefully unprepared for the impact of European Union's Restriction on Hazardous Substances (RoHS) Act. Manufacturers risk revenue loss from banned products, and legal and branding concerns; and secondary

AMR estimates the electronics industry will spend $30 billion over the next five years to address RoHS compliance.

Karofsky recommends five strategies for reducing RoHS exposure:

• Build a compliance culture, and budget enough money to ensure its growth;

• Redesign noncompliant products;

• Invest in design, procurement, and manufacturing technology to support compliance and reporting;

• Modify manufacturing, supplier management, and repair processes to ensure compliance; and

• Examine strategies for gathering product-content information from suppliers.