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

To: Douglas V. Fant who wrote (1722)	9/13/1998 7:42:00 AM
From: Creditman	Respond to of 2542

Doug, How about "declining margins, excess capacity" AND foreign competition. Although the US based ECMs we all love do have some foreign operations they have lots of Asian competitors whose domestic costs have just been halved by the currency Gods. This is not a big deal in itself but you gotta add it to the list of things holding down profits and adding more not yet understood future problems.

To: Douglas V. Fant who wrote (1722)	9/13/1998 11:14:00 AM
From: patroller	Read Replies (2) \| Respond to of 2542

Douglas if you look at jabil flex slr sci there is no excess cap. in fact these companies are adding new cap. as we speak and growing at 25-40% or better,everyone of these companies manufacture in the low cost area's. Douglas because they have money, they are more competitive they can afford the most efficient equipment,they get bigger contracts because they provide a world wide operation. Are their margins being being hit I don't think so,not with that kind of demand.Anyway there are many more reasons why Paul K 18acastra and I have been saying we like jabil and flex so much,mostly they are better positioned.jmho patroller