This past quarter, MEC has once again experienced the phenomenon of bringing business back from China, which is becoming more and more prevalent. From 2000 to 2005 our company, like many others, saw a percentage of the customer base erode due to the lure of lower costs found in China. The Asian providers aggressively marketed their electronics contract manufacturing services with numbers which seemed enticing, and assured that the move overseas would be a simple one. However, as time passed US companies began to reconsider their decision to move electronics assembly offshore. Costs started to rise, performance was falling below expectations, and issues with the handling of product returns began to make them think twice. Also, it was often difficult for them to implement product changes or specific PCB assembly modifications when they needed to do so.

Customers are finding MEC’s quoted cost structure for electronics assembly and box build services in our Tecate, Mexico facility is often favorable when compared to the total manufacturing costs they absorb with Asian sourcing. The relative nearness of production facilities when compared to Asia allows for such an advantage in shorting delivery times, that single benefit alone is enough to bring significant amounts of business back. Life in procurement quickly becomes much simpler.

P. Michael Stoehr


CEO Photo Electronics Contract Manufacturing Assembly PCB EMS Outsourcing

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