Comparisons made among Mexico, China and Eastern Europe for electronics manufacturing.

According to new studies by Technology Forecasters Inc. (TFI, Alameda, CA, www.techforecasters.com), electronics manufacturing companies have more choices than ever for low-cost manufacturing yet also have the most pressure to choose the best-suited regions for manufacturing. Insights on Mexico, China and Eastern Europe's manufacturing costs, strengths and weaknesses were presented in September at TFI's Quarterly Forum for Electronics Manufacturing Outsourcing and Supply Chain in Monterrey, Mexico.

TFI president Pamela Gordon stated, "Time to market is short enough and pricing is competitive enough that choosing the wrong region for manufacturing a particular electronic product could easily cost the vendor its competitive position. Determining the optimal country for conducting various aspects of electronics production is now equally important to the bottom line, customer satisfaction, and risk management."

The keynote presentation at the Quarterly Forum, "Manufacturing Communications Equipment in Mexico, Comparisons with China," was delivered by Elcoteq's President of the Americas Douglas Brenner. Brenner said, "Once the Mecca of high-volume manufacturing, Mexico is undergoing a metamorphosis. Mexico-based contract manufacturers have to reinvent themselves as the production of high-volume low-mix products transitions to China." Brenner emphasized that not all products are ideal for production in China. "Larger, more complex, low-volume and high-mix products, such as communications-infrastructure products, are better suited for Mexico," he said.

                2001   2006

Rest of World     7%     9%
North America    33%    17%
Asia             29%    42%
Japan             3%     8%
Europe           28%    24%

TFI's 2001 and forecasted 2006 electronics contract manufacturing
revenues by six regions.

Note: Table made from pie chart.