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TWST: Let's take a top-down view. What's going on in the EMS space after
years of turmoil?
Mr. Dinges: You have to look at the industry globally now. The industry
still has lots of opportunities and some companies have been able to
capitalize on those opportunities better than others, while a number of
other companies are still coming out from underneath that big downturn
and are still trying to match capacity with the current state of demand
that they are seeing in their respective end markets. TWST: Let's look at the ones that have taken advantage of the
opportunities. Where are the opportunities and what are these guys doing
to make sure they take advantage of them?
Mr. Dinges: When you look at the current state of where growth has been
strongest across the overall technology and electronics food chain, the
strongest growth has been in more standardized products, as well as in
consumer devices. Over the last five or six years in the higher end of
the market, the more complex, configure-to-order types of products (that
were the big growth drivers for many of the US-listed EMS companies)
have seen growth rates slow, and the consumer side of the business
really took off. A number of those products in the consumer area were
products that, unfortunately for many of the US-based and US-listed EMS
companies, were built by companies based and listed over in Asia.
Tickers included in this excerpt: BHE, CLS, FLEX, JBL, SANM, SLR, US-EMS, VC
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