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Contract Manufacturing start up Business

john

#18631

Contract Manufacturing start up Business | 10 January, 2002

I would like to start a Contract Manufacturing Business of PCB and Cable Assembling in North Carolina and will appreciate any valued input regarding the market study and business potential for a newly low budget startup. Here almost all big companies like Nortel, IBM and Ericsson has stopped Manufacturing and given all their work to big names like Flextronics, Celestica, Sanmina etc. What do you think of business potential. Do these big companies give work to small people like us.

Do I need to have ISO certification and other Registrations to get work.

Your advice is highly appreciated.

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CAL

#18637

Contract Manufacturing start up Business | 11 January, 2002

Pick a niche i.e. Fiber cable splice or BGA replacement service. There are tons on EMS providers and with very cut throat prices. I gaurentee you if you had a BGA rework station and an xray - and offered services in this area you will make a killing. I would pick a narrow topic and focus on developing that process and customers. Also, companies not manufacturing right now do to the ecconomic times are becoming EMS providers just to utilize machines and stir up some $.

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john

#18641

Contract Manufacturing start up Business | 11 January, 2002

Thanks for the advice.

How much ball park expenses required in the Fiber Optics Cable and BGC setup. Di I need to have an ISO-9002 certification. Any suggestion for the Brand names and specific Models of equipment.

Do these big competitors like Flextronics give work to small people like us.

Thanks

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#18647

Contract Manufacturing start up Business | 14 January, 2002

Before you spending very much time [$$$$] on this project, consider: * This might be the wrong audience for your contractor market requirements questions. - Probably 50% of the posters on this forum are contractors. [And as Cal says, that number probably gets higher every day, given the on-going 2+-year recession in the industry.] - The needs of a niche markets probably vary according to locale. * Nortel, IBM, and Ericsson may be better sources of information on unmet supplier capabilities and their requirements. * Flextronics, Celestica, and Sanmina may be better sources of information on the capability requirements of suppliers of the things where they don�t want to be involved.

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#18649

Contract Manufacturing start up Business | 14 January, 2002

I won't be easy. You have to consider most of the major manufactures are consider outsoucesing to China & Malaysia. They have cheap labor & lower tax. If you insist to invest you money to start up a contract manufacturing business. You will save a lot of money if you buy the used equipment instead of the new one. Currently, lots of major manufacturers shut down their factories all over the world. Those equipment are very new or not even put it in production. Such as Nortel in Ireland. Their equipment used just for several thousand hours. Again, Think again, again & again. Now is very tough to start a new CM factory in the States.

Sai

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