LAKE MARY, Fla.—FARO® Technologies, Inc., recently signed an agreement to outsource its manufacturing to Sanmina Corporation, a U.S.-based Fortune-500 electronic manufacturing service (EMS) provider, FARO Technologies said in a release. FARO is a developer of 3D measurement, imaging, and realization equipment for the 3D metrology, AEC (architecture, engineering, and construction), and public safety analytics markets.

“As the next step in our business transformation, we plan to transition FARO production from our three manufacturing sites in Lake Mary, Florida; Exton, Pennsylvania; and Stuttgart, Germany, to Sanmina,” stated Michael Burger, president and chief executive officer, in the release. “Following a rigorous selection process, we selected Sanmina as our partner based upon their proven ability to deliver quality products on required timelines. Together, we are confident in our ability to meet customer demand throughout the transition process.

“While this decision is not easy, as it directly affects FARO employees, once complete, our new operational model greatly simplifies operations, reduces costs, and allows our management team to focus on the development and sale of differentiated technology to customers in our target markets,” Burger continued.

The phased transition to a Sanmina production facility is expected to be completed over the next 12 months and result in approximately $12 million in annualized labor and material savings when complete. FARO believes the expected savings will have a negligible impact on 2021, followed by steady improvement through 2022, with the full benefit to be realized in the first quarter of 2023, the company said in the release.

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