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

To: Creditman who wrote (1013)	12/19/1997 9:42:00 PM
From: jeffbas	Respond to of 2542

Are there any implications for our favorites that Asian assets are worth less dollars now than they were bought/built for and could be bought/replaced more cheaply now? I am somewhat skeptical that all the effects for companies with production in that region are favorable (because of lower labor costs in terms of dollars). Note that some thread said yesterday that with highly automated SMT there is no advantage to being offshore. IF THAT IS CORRECT, then being in Asia only makes sense if production is for customers there. There obviously has to be a % of costs that are US labor crossover point versus transportation costs from Asia to US + implicit political/instability risk premium + all the implications of more time from receiving order to delivery to customer.