Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (2754)	3/10/2004 5:21:26 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China and Mexico Lock Horns over Wooing North American Electronics Companies Semiconductors Frost & Sullivan March 10, 2004 Frost & Sullivan says rising business costs in Mexico have compelled North American electronics manufacturing service providers and electronics assemblers to reevaluate the viability of continuing manufacturing operations in that region. New analysis from Frost & Sullivan, China versus Mexico EMS Provider Markets, reveals that the world EMS provider market generated revenues of $92.2 billion in 2002 and is likely to reach $334.7 billion by 2009. “With declining profit margins, many EMS providers operating from Mexico are finding it increasingly difficult to compete with electronics companies that have manufacturing facilities in relatively inexpensive regions such as Asia and Eastern Europe,” says Frost & Sullivan Industry Manager Keith Robinson. China is emerging as the most preferred low-cost destination for manufacturers across the world with its inexpensive yet educated or skilled workforce. China’s relatively high quality of products, rapidly developing infrastructural facilities, and untapped domestic market is helping to fuel market expanison. “Several electronics manufacturers are considering either targeting the Chinese domestic market or making China the global sourcing hub,” informs Robinson. “Manufacturing and shipping costs and the level of market fragmentation will be key deciding factors in their decision-making process.” EMS providers should also consider the prevalence and influence of standards on electronics products. It is critical as some industries – for instance, sensors – have different standards and protocols across the globe, making them more suitable for catering to local market requirements. Electronics manufacturers, though lured by the overwhelming benefits offered by China, are treading cautiously due to the laxity in strict enforcement of intellectual property protection laws. Widespread reports about the duplication of processes and products by local manufacturers have increased these concerns. tekrati.com