Applied Materials No-Politics Thread (AMAT) Message Board

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Technology Stocks : Applied Materials No-Politics Thread (AMAT)

AMAT 223.95

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Nov 21 9:30 AM EST

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To: Big Bucks who wrote (7560)	10/16/2003 4:45:10 PM
From: Ira Player	Read Replies (1) of 25522

BB, As frictions are reduced, the placement of manufacturing becomes more arbitrary to the business owner. "Frictions" as used above, are any costs or delays between manufacturing steps. Many components of "High Tech" equipment have high cost and value. Many systems houses use local sources for the components to minimize the cycle time. As transit times become shorter and more consistent, where something is made becomes less important and lower cost, but more distant, sources can be considered. The continued outsourcing to less expensive countries will accelerate, not reverse. Please note that "friction" has reduced for the higher level work as well. With improved software for requirement tracking/verification, it is becoming more reliable to outsource even the design aspects of these complex systems. Many of the jobs lost in this current downturn will NOT be returned to US Engineers when a turn around happens. This is a paradigm shift, not a short term aberration. Just my humble opinion. Ira

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