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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector -- Ignore unavailable to you. Want to Upgrade?

To: 18acastra who wrote (945)	12/8/1997 11:24:00 AM
From: Joe Dancy	Read Replies (1) \| Respond to of 2542

Interesting article out today - the growth and consolidation appear to continue here: Copyright 1997 PR Newswire Association, Inc. PR Newswire December 8, 1997, Monday - 08:56 Eastern Time Frost & Sullivan End-User Industries Drive the Rapidly Growing Contract Manufacturing Market Driven by its many end-user industries, the contract manufacturing market continues to have explosive growth. In fact, the market is growing faster than the industries it serves. The biggest contract manufacturing end-user industry is currently computers, although by the end of the forecast period, it is expected that communications, including telecommunications and data communications, will take the lead. According to strategic research by Frost & Sullivan (www.frost.com), U.S. Contract Manufacturing Markets, in 1997 the market is expected to be worth almost $21.8 billion. During the forecast period from 1997 to 2004 the market is anticipated to continue its strong compound annual growth rate at 26.1 percent, and by the end of the period the market should be worth over $110 billion. "OEMs are increasingly seeing contract manufacturing as a sound strategy to take care of their manufacturing needs," says Frost & Sullivan Analyst Jouni Forsman. MOUNTAIN VIEW, Calif., Dec. 8 One of the current market trends in the industry is that while the average size of a contract manufacturer is growing, the biggest companies are growing at the fastest rate. Acquisitions are a common strategy used to grow a company because it allows the company to gain extra capacity and new skills quickly. Best - Joe