I read a lot of comments about ELAMF which refer to them as a Mexican operation and maybe in a small way they are but ...Now I do not deal with ELAMF as a supplier of theirs but I do deal with companies like them and let me tell you ... the only connection they have to Mexico is their labor costs and the currency called out on their paychecks! IMPO (IMPO = professional IMO!) They buy material in dollars, sell in dollars, quote in dollars. What happens in the world electronics economy and especially the US economy is much, much more important to how they are doing than Mexican economics. Same with Singapore. The electronics firms there are owned by US companies, have US suppliers and customers and do business in Uncle Sam's favorite "bucks". You know the Mequilador operations accross the California border even have California phone lines, the managers live on theis side of the border, etc. You know how in aviation, English is the language all pilots speak in to the towers? Well dollars is the language of all electronics .. except maybe a little in Japan, Germany and a little less in the UK too.
There is some political risk in foreign firms like the threat of war or revolution, Mexico is stable I guess but not as secure as California, for example. ELAMF being in Mexico gets a wage advantage over US companies and in the highly competitive industry they live in, that may be enough to make them a winner. |
