RoHS Compliance Costs a Pretty Penny

by Andy on June 16, 2008

Lead-Free Area Sign RoHS (Restriction of Hazardous Substances) has been around for almost two years now. If you are not aware, RoHS is the ban on six substances (lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls and polybrominated diphenyl ether) in electronics equipment in the European Union.

According to an article on Purchasing.com, RoHS has cost the electronics industry over $32 billion, and that’s just getting started. It’s estimated to cost around $3 billion just to maintain compliance with RoHS.

Here are some things to keep in mind with RoHS:

  • The cost of RoHS will continue to increase. With the possibility of adding more substances and getting rid of exemptions, compliance will just become more costly.
  • About 29% of companies say they lost sales because of RoHS.
  • On the more positive side of things, RoHS helped many companies reorganize by improving their supply chain process and reevaluating their product lines; some companies have even reported increased market share.
  • Many electronics companies are reporting more inventory than usual. This is probably because many companies had to carry both RoHS compliant and non-RoHS compliant goods and now they are stuck with the non-RoHS compliant items.

The article on the cost of RoHS is pretty interesting, regardless of your involvement with RoHS.

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