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Electronics Production | December 10, 2009

5Q & 5A: CEO of SRI answers our questions

<em>5 questions and 5 answers</em>: Today’s Q & A was answered by Martin Kampmann genannt Diergardt, CEO of the German EMS-provider SRI.


• Where do you see the European EMS-industry in the next 2-3 years?
Given the current economic situation and the development over the coming years, we anticipate a consolidation within the German EMS-industry. We believe that this will mainly concern those companies that operate with a more regional strategy.

It will be interesting to see, if those more internationally active EMS-companies in Germany will stick to their commitment (towards the smaller and medium sized companies in Germany), or if they will focus more on large international corporations as their clients. All of them will definitely check their current spectrum of services as well as their target markets. As a consequence, they will either broaden their service portfolio or become more vertically integrated.

• Which segment provides the highest growth potential for you as an EMS-provider?
The greatest growth potential we still see in the fields of renewable energy and automation technology. However, growth potential is only one aspect. In addition, we monitor companies very closely that have found their niche and are very successful in what they are doing. We also look at young companies with innovative products that are just starting their successful path into the industry. We are very careful in our current situation – only one year after the management buy-out – and we are looking to diversify our customer portfolio; supporting customers in different industry sectors worldwide. We have proven successful in adapting to the diverse needs of each market segment and our strength is to bring all positive aspects to other segments too.

• Where do you see your own competitors?
Everywhere, which comes as no surprise! We are helped by the successful symbiosis of our three business segments (Manufacturing & Sourcing, Engineering & Services and Consulting & Training): we can rapidly develop our internal structures and – at the same time – get at quick insight into the various market segments. In this way we can get an understanding of the diverse needs of the different sectors. However, we are also benefiting from our own history. That is to say; we know both worlds. We work at the speed of a medium-sized company and are able to master the complexity and the mechanisms of a corporation.

• Is becoming an ODM-company the way to go for EMS-providers?
It is our strategy – based on our experience and skills – to develop products for our customers that will bring our activities in our three business segments (and other industry segments) closer together: for example mobile data transmission and medical technology. We want to offer added value to our customers and – at the same time – develop our business further.

• How would you define the relationship of EMS-provider and OEM customer?
Here, I am actually bothered by the term provider or service provider. The word does not adequately describe the relationship that we seek to have with our customers. We don't want to provide only services to our customers. We need to combine our strengths so that both partners can benefit. Everyone should and has to do their part – in a partnership that should be useful to both partners. For a long and successful partnership, it is insufficient, in my opinion, to provide the customer only with a solution to a cost or flexibility problem. That is too short-sighted I believe.

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