JBIL CC highlights:
rapid rebound in mobility on the previous quarter, we are very, very busy right now. New business pipeline and our ability to continue to grow the business, the combination of new business awards and gaining share of wallet with the existing customers and really making progress in targeted sectors has been very good.
I would like to distinguish the EMS assembly part of mobility from the materials and technology services part of mobility. We report those sectors together, but they are very distinct in terms of the profitability profiles of the business and our go-forward strategy.
Today, the mobility EMS portion of our business; digital home office, which includes our printing business, set top business; and our date center IT, which would encompass networking, telecommunications as well as computing and storage, comprise about 61% of our overall revenue.
While Aftermarket Services, emerging growth sectors, the defense and aerospace, instrumentation and industrial, clean teach, which combined is a billion dollar business for us today, and the healthcare and life sciences area of our business and then the Jabil Green Point Materials Technology portion of our business comprises 39% of our revenue.
Our experience has been very positive since 2004 and we are seeing acceleration in that growth year-over-year from 2009 to 2010 with about a 33% year-over-year growth rate in the sectors of instrumentation, industrial and healthcare, Aftermarket Services, and aerospace and defense. These businesses alone now make up approximately 30% of our business. It’s a $4 billion business today. So, a very strong growth rate since 2004, strong growth over 2009. And we think we have a value proposition, which is very attractive for customers in very sizable growth markets.
These markets tend to be – have very low penetration rates. The level of outsourcing ranging from 10% to 15% depending whose data you read and this is a very large industry combined $200 billion to $300 billion for us. So, we feel like we have desirable value proposition for very attractive customers in these sizable growth markets.
Secondly, we are really seeing accelerated growth in target market sectors. A little bit different driver, a couple of very good trends in our favor, one is that we are in early stage of virtualization in healthcare and life science, industrial markets, instrumentation, and defense and aerospace. But again this is process where the sectors are very lowly penetrated by our industry and we have a lot of needs that we have a value proposition for. It helps them growth global place and we think we are in good shape to continue to take advantage of that trend.
Three, we do believe we're in sustainable expansion of advanced IT and communications infrastructure, really a convergence of many drivers, but our IT facing areas of our business began to recover in the summer of ’09 have continued to show very strong growth and we expect to continue to see that for probably the next two or three years. And some important drivers behind that trend, social network and streaming video requires a lot of additional bandwidth and storage.
IT refresh, many companies delayed their procurement of IT related capital expenditures throughout the recession and there is certainly a significant catch up. And growing affluence in China and India, Latin America and really the what many people refer to as the BRIC countries, folks don’t want the low end cell phone anymore, they want phones with cameras and streaming video that requires more bandwidth, that requires a more sophisticated wireless infrastructure, all of these converging we think to provide a sustainable expansion of advance IT and communications infrastructure.
[Johnny: Almost all sectors seeing growth. Record year despute still emerging from a recession. It indicates more companies are outsourcing to achieve more efficiencies and better costs containment.
A number of factors will drive future growth: 1) More feature rich phones in developmenting markets as opposed to low cost entry level phones 2) IT upgrade cycle that has been put off due to the recesssion 3) health care moving to IT services.
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