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Asked by Corporate Verified Member on July 13, 2013
Antonio Tomasiello

What will be the best business in terms of profit for a small EMS ( 600MEur/Y ), low-mix, high volume product? mediacl and industrial sector? others idea?

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  1. Steve DeCollibus

    Answer by Steve DeCollibus at 9:28 am PST on August 9, 2013

    This answer: Report

    Medical, Aerospace, and automotive.

  2. Answer by Anonymous at 9:31 am PST on July 13, 2013

    This answer: Report

    It depends how much of the supply chain the provider offers services on. At 600M EU/Y, I assume he’s large enough to offer design and procurement, plus some backend services like field failure analysis. If so, medical is good because of the trends in home health and people living longer.

    In the above instance, it’s less an end market necessity than it is technological. Even at 600M you cannot compete with Sanmina in medical but if you offer deeper RF capabilities or other technology where you have a real competence compared to even a larger provider, then you begin to be recognized as a niche expert.

    The higher margin end-markets are medical, industrial, military/avionics and automotive.

    You then have to ask yourself whether you build technical capability in-house or is it easier to acquire boutique shops for immediate certifications and engineering talent.

    Differentiation in service offering depth and scope of understanding is just as important as servicing any of the above markets.

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