The market for manufacturing electronic equipment and components on contract is booming, according to Magus Contract Electronics general manager Stephen Wilce.
Magus is the new name for Harding Control Systems, a change which Wilce says reflects the company's new ambition: to launch a serious assault on the fast-growing international electronic contracts market. Magus mainly produces telecommunications equipment.
"It's been phenomenal — we've seen growth of about 20% a year for the past 10 years," he says. "Last year the Australasian market grew 26% and it's not showing any sign of stopping soon."
The reason for the growth, says Wilce, is a move by original equipment manufacturers to outsource electronic manufacturing. "They don't have the purchasing power we do, through our parent company Viking Pacific, so they can't do things as cheaply as we can," he says.
Viking Pacific buys its components through an international procurement office in California, which offers both cost and lead-time benefits. "We have a lot of US customers who pay us in US dollars, so we can use those for purchasing and avoid any exchange rate problems," says Wilce.
Another contract manufacturer, who did not wish to be named, agreed that the contract manufacturing market was growing at a fast rate, saying that the lower exchange rate was greatly boosting the market.