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To: Dalin who wrote (53634)1/4/2001 12:33:47 AM
From: Don Lloyd  Respond to of 436258
 
Ramblin -

...However, as a EMS(Electronic Manufacturing Service)provider, we have just given our customers a significant cost reduction, because of productivity gains. I'm not sure if the big guys are able to keep doin the same. ...

Hopefully, your customers have paid for it and you haven't really given it away. But, from the customers POV, the outsourcing you provide isn't just some great bonus, but rather a vital part of staying in business. Everything that you provide to one of your customers, is presumably also available to their competitors, either from you or from one of YOUR competitors. The service you provide increases overall economic efficiency, and increases the standard of living, but usually won't flow to the bottom line of your customers because the advantages are normally competed away. Your customers have no choice but to pay for your services and write down the parts of their capital structure which no longer are competitive and release their workers who previously performed functions that can no longer be afforded to be performed in-house.

Regards, Don