Trends & Observations - Oct '05

* Jabil's work-cell model is attracting industry attention. Some feel it enables the company to develop deeper customer relations, better response times, and more efficient cost management. Some EMS competitors may be trying to copy the model, or portions of it, to improve overall customer service and retention. The company is also quietly moving deeper into design. While not much has been disclosed in this area, it is believed staffing already exceed 1,000 employees with focus in consumer and storage markets.

* The increasingly competitive EMS landscape has hit many of the tier-3 and tier-4 EMS providers especially hard as they continue to struggle. Providers with true differentiation will fare best.

VentureOutsource.com, October 2005