If
you want to learn more about EMS companies, you want to read the McKinsey article linked below.
(You may need to copy and paste the URL if the link is not "live.")
My own two cents is to observe that if EMS companies are
at 50% capacity utilization is the one of the best kept secrets on Wall Street.
This report lacks two items
which would make it more relevant to the Silicon Valley economy:
1) McKinsey does not report where the 50% of idle capacity
is located. USA/Canada? Europe? Mexico? Asia??? (I can imagine the EMS companies are loathe to disclose
such details.)
and
2) It is important to understand where the utilized production capacity is located. McKinsey's supply chain
strategy may work well when there is a supply chain established, such as with North American and European manufacturing
locations. However, my experience dealing with Asian production houses over the last year or two suggests the primary
supply chain tends to be the buyer's personal network of friends and associates. McKinsey's scheme is useless in
such cases.
Let me know if you find this useful?
Regards,
 |
New from
The McKinsey Quarterly: |
 |
High Tech
Getting contract manufacturers back on track
Electronics OEMs have wrung many concessions from their manufacturing
contractors.
A more equitable relationship would be of longer-lasting benefit to both parties.
http://www.mckinseyquarterly.com/links/13963 |
