A little bit of updated information I saw on DIIG'S homepage.
a spotlight on...Dovatron International In 1993 Dovatron International joined the burgeoning contract electronics manufacturing (CEM) industry as an independent public company. The risks and challenges faced during those early days were formidable. Defining a strategy, acquiring and developing worldwide locations, winning major international accounts, implementing effective business systems, and developing world-class manufacturing operations were all key to Dovatron's success in the highly competitive outsourcing industry. Today we are not only recognized as a top-tier, world-class CEM, but have taken a leadership position in "redefining outsourcing". We are truly regarded as a technology leader based upon our ability to leverage the combined technological resources of the DII Group, tap into the unique talents and experience of our innovative people, and provide our customers with engineering and manufacturing opportunities on a global scale.
The CEM industry has grown more than 25% per year since the early `90s, and this breakneck growth is forecasted to continue. This year the CEM industry will be approximately $90 billion. By the year 2001, it is predicted to be nearly $180 billion. This continued dramatic growth will be fueled by increased value-added services offered by the CEM industry itself and the ongoing divestiture by original equipment manufacturers (OEMs) of internal manufacturing. Growth in the electronics industry is being fueled by continual advances in technology and as consumer demand industries such as computing, networking, and telecommunications are introducing new, more feature-rich products at a record pace with shorter life cycles.
The CEM industry will continue to enjoy an ever-increasing share of the total electronics industry and, in addition, our customers - the major OEMs will continue the trend to outsource more of their manufacturing requirements. They have chosen to concentrate on their own core competencies of product development and marketing, obtaining their manufacturing solutions from companies like ours, whose sole mission is excellence in manufacturing. In this way, OEMs free up internal resources and redirect them - focusing on their own competencies. Dovatron's service-oriented organization focuses on providing our customers with faster time to market for their products, the benefit of the latest manufacturing technologies, better return on investment (ROI), and product cost advantages afforded them by our volume purchase agreements and our ability to source material globally and deliver product regionally.
This year, Dovatron will again enjoy a successful growth rate, outpacing the industry average. We have more than 4,000 employees worldwide in our nine factories located in Europe, Asia, and North America. They are located strategically to provide our customers with point-of-use manufacturing. Recent facility extensions were added in Puebla and Guadalajara, Mexico; Cork, Ireland; a new facility was opened in Southern California; and we opened a backpanel operation in Texas. These facility expansions, together with the installation of several new high-speed SMT lines in other Dovatron sites, will help us meet the constantly increasing production demand from our customers. The latest advanced manufacturing technologies, such as ball grid array (BGA), are being offered by almost all of our facilities.
Implementation of a fully integrated business system (4th Shift), a computer-integrated manufacturing (CIM) package (Unicam), and the Corporate Sales Force Automation System will provide Dovatron with the latest communications capability not just internally, but with customers and suppliers. It will ensure increased factory efficiencies and provide a vehicle for collection, transfer, and distribution of technical data to and from the factory floor and between Dovatron sites.
Dovatron's new product introduction program, or "Speed to Market", leverages the technologies and services of the other DII Group companies and provides Dovatron's customers with a unique set of capabilities that differentiate us from the rest of the outsourcing industry. We will continue to provide our customers with one-stop shopping for design, semiconductor solutions, interconnect printed circuits, procurement, and assembly services required to bring new products to market with unparalleled speed.
Our "Redefining Outsourcing" program is being launched widely this year throughout Dovatron and the entire DII Group. This new program seeks to introduce our unique product presentations. Those who take advantage of this new dimension in outsourcing, which is unique to the DII companies, will benefit directly from higher return on investment, increased market share and profits, and lower overall product introduction costs. This effort is sure to further differentiate Dovatron from our competitors and will ensure the continued growth, success, and prominence we have achieved in the CFM industry.
The next few years will see continued technological advances, continued growth in the electronics industry, and the continued trend of OEMs to outsource. By all accounts, contract electronics manufacturing will become even more embedded in the fabric of the electronics industry as a whole. As we have redefined outsourcing, so will we continue to meet our customers' demands for new and innovative services AND lead the way by creating new opportunities for increased flexibility, lower overall product costs, and manufacturing capabilities in new regions of the world. Dovatron International will surely continue it's reputation of technological leadership, staffed by the finest team of employees in the industry.
The DII Group Design Hub Services
The essence of formulating competitive strategy is relating a company to its environment ... the best strategy for a given firm is ultimately a unique construction reflecting its particular circumstances. Since its spin-off in March `93 from Dover Corp., Dovatron International has pulled together a diverse group of operations that supports its core business of systems assembly and distribution. In January 1996, Dovatron International changed its name to the DII Group and continued its strategic acquisitions, making it one of the most broad-based service suppliers to the electronics industry. Through this series of strategic acquisitions, the DII Group has acquired a complete chain of technology companies aimed at servicing the complete product development cycle.
For the DII Group, these technological acquisitions are part of a Linked Marketing Strategy. The Linked Marketing Strategy is based upon each of the companies within the DII Group utilizing their expertise and services to provide a greater response to the customer than the customer would receive if he had sought those services independently. Currently, the DII Group is made up of the following businesses:
Dovatron - Systems assembly and distribution DII Interconnect Systems - Backpanel fabrication and assembly Multek - Complex high-performance printed circuit board fabrication Design Solutions, Inc. (DSI) - Printed circuit board layout design Orbit Semiconductor - Quick-turn, customer-specific ASICs Process Technology Group - made up of TTI Testron (In-circuit test and functional test equipment), IRI (PC board stencils and tooling), and Cencorp (Depaneling equipment).
The DII Group Linked Marketing strategy leverages the capability of the Group's technology companies to bring time-to-market and product-cost gains. This Linked Marketing strategy is applied in a very practical way through the DII Group Design Hub. The Design Hub allows the customer to focus on its core competencies, while the DII Group manages the product development cycle. Activities are centrally coordinated, with many activities happening in parallel. So not only does the customer benefit from the capabilities of the DII Group technology companies, but these capabilities are also harnessed together. This summing of capabilities is the DII Group Design Hub.
Throughout each of these stages, the various companies within the DII Group work together early into the design phase. In doing this, they not only eliminate the need to re-spin the design to match the technical requirement of their process, but they also shorten the product development cycle through their coordinated and parallel activities. The art of removing the set-up delay between one process step and another is the key to maintaining the tight schedules that are demanded in this business. DII is well positioned to achieve this due to the company's existing framework of shared activities across the group of companies.
The Design Hub principle, in which DII companies coordinate their product design and manufacturing services, is built around the Linked Marketing Strategy where the strengths of each of the companies are leveraged to provide the customer with additional value. The coordination and integration of all activities between these various technology businesses can offer more to our customers than if the customers had to interface with each of these companies individually. The interaction and expert focus that each of the individual businesses within the group applies to specific projects is the key to implementation. It will yield a time-to-market reduction that could not be achieved by the customer coordinating these activities itself.
The DII Group's Linked Marketing strategy provides the electronics industry with a "Total Service Solution". By focusing on the vertical integration of technology companies, speed-to-market reduction becomes a real differentiator. The DII Group will continue to expand the breadth and depth of the Group's products and services, further enhancing the `Total Solution' concept.
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