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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Evans who wrote (8514)	12/14/1998 12:32:00 PM
From: Thomas Scharf	Read Replies (2) \| Respond to of 18016

Thanks. Out-sourcing of mfg is so ubiquitous today, I have to question whether nn is doing the right thing by keeping it in-house. Even csco out-sources most of its mfg. There are a lot of factors to consider. On the negative side is the capital investment required, the lack of flexibility & the cost of maintaining the work force during lean times. On the other hand, nn probably has access to a better-educated, less expensive work force simply because there is less competition and lower cost of living in Kanata than in Silicon Valley. Where was ub's manufacturing facilities located? Perhaps that was nn's mistake in the ub purchase. They didn't realize that the dynamics were different. Thomas