Posted on 04/15/2006 6:28:50 PM PDT by CAWats
The PC market was emerging fast, and IBM wanted to hit the ground running. Rather than reinvent the wheel, IBM took what was already available.
A 12-man design team was authorized to use off-the-shelf components and an open architecture, which meant that other manufacturers could build compatible machines.
A bevy of new PC makers soon entered the market. It was a radical departure from the past, when companies designed and manufactured all their products in-house. As the tech industry grew, companies like Sun Microsystems (SUNW) and Cisco Systems (CSCO) also teamed up with contract manufacturers in order to save time and money.
These days the industry, now referred to as electronic manufacturing services, has $170 billion in annual revenue. The industry is dominated by Solectron, (SLR) Flextronics International, (FLEX) Sanmina-SCI, (SANM) Celestica (CLS) and Jabil Circuit. (JBL)
These companies handle manufacturing for all manner of electronic components — everything from circuit boards and cell phones to laptops and cameras.
The industry went global in a big way in 2000, when Sony (SNE) handed over two assembly plants to Solectron. That helped open up the Asian market.
(Excerpt) Read more at investors.com ...
High-volume contract manufacturing is what the article is referring to. There's still plenty of low-medium contract manufacturing here. Frankly, I wouldn't want to work for a high-volume manufacturer here or there.
So? Jabil has a facility in Florida, Solectron has plants in the Carolinas and in Texas, Celestica has a plant in New Hanpshire (I believe) and Flextronics has a facility one mile from my office here in NC. Is that sending work overseas?
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