Comments on: To restructure or not: Large CM’s may have no choice http://www.techforecasters.com/weblog/archives/to-restructure-or-not-large-cms-may-have-no-choice/ Read what our thought leaders are thinking, in our every-other-Friday TFI blog entries. Sign up with your favorite RSS Feed service and get an automated alert whenever there's a new posting to the TFI Weblog. Wed, 21 Jul 2010 10:20:37 -0500 http://wordpress.org/?v=2.8 hourly 1 By: Bill Roberts http://www.techforecasters.com/weblog/archives/to-restructure-or-not-large-cms-may-have-no-choice/comment-page-1/#comment-6110 Bill Roberts Sat, 15 Sep 2007 20:28:34 +0000 http://www.techforecasters.com/weblog/archives/to-restructure-or-not-large-cms-may-have-no-choice/#comment-6110 Phil--You raise good points. Change is definitely a constant in EMS and any discussion of restructuring, etc., needs to keep that in mind. Thanks for reminding me. Phil–You raise good points. Change is definitely a constant in EMS and any discussion of restructuring, etc., needs to keep that in mind. Thanks for reminding me.

]]> By: Philip Stoten http://www.techforecasters.com/weblog/archives/to-restructure-or-not-large-cms-may-have-no-choice/comment-page-1/#comment-5990 Philip Stoten Fri, 14 Sep 2007 17:17:40 +0000 http://www.techforecasters.com/weblog/archives/to-restructure-or-not-large-cms-may-have-no-choice/#comment-5990 Bill, it is interesting to read your views regarding restructuring as a necessity. It seems to me that I hardly ever read a set of quarterly results without seeing one-off restructuring costs listed. But they are not one-off, they are on-going and perhaps part of being a global EMS company is constantly adjusting production capacity within a global footprint. Clearly global demand is in flux, with consumer demand growing in China, India and newer markets like Vietnam – this provides one pressure, but the constant demand for lower costs also provides a huge pressure to keep moving to lower and lower cost regions. The downsizing in Europe that you mentioned represents a total of just 1.6 million square feet, which according to your numbers only represents less than $1billion dollars of revenue, not a huge proportion. So, I guess my view is that change is the only constant in the electronics industry and we should all get used to it! These giants will have to continue to evolve and develop, or restructure, to compete. Philip Stoten, Editor, EMSNow Bill, it is interesting to read your views regarding restructuring as a necessity. It seems to me that I hardly ever read a set of quarterly results without seeing one-off restructuring costs listed. But they are not one-off, they are on-going and perhaps part of being a global EMS company is constantly adjusting production capacity within a global footprint.

Clearly global demand is in flux, with consumer demand growing in China, India and newer markets like Vietnam – this provides one pressure, but the constant demand for lower costs also provides a huge pressure to keep moving to lower and lower cost regions.

The downsizing in Europe that you mentioned represents a total of just 1.6 million square feet, which according to your numbers only represents less than $1billion dollars of revenue, not a huge proportion.

So, I guess my view is that change is the only constant in the electronics industry and we should all get used to it! These giants will have to continue to evolve and develop, or restructure, to compete.

Philip Stoten, Editor, EMSNow

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