Growth from Consolidation is OUT - Technology Augmentation is IN

According to VDC analyst John Gordon, "The key to growth in the near term is in partnering with those that provide the value-add components you don't. Whether it be printed circuit boards, cable, plastics, EM switches, flex circuits, off-shore single unit high volume (SUHV) manufacturing, touch screen technology - if you don't make it, ally with someone who does."

Natick, Massachusetts (PRWEB) July 14, 2003 - Competitive advantage and market share attainment for many keyboard and keypad suppliers will come down to the ability to outdo the competition on several points and capabilities.

According to VDC analyst John Gordon, "The key to growth in the near term is in partnering with those that provide the value-add components you don't. Whether it be printed circuit boards, cable, plastics, EM switches, flex circuits, off-shore single unit high volume (SUHV) manufacturing, touch screen technology - if you don't make it, ally with someone who does."

Successful Strategies to Garnering Share & Achieving Growth

- Using advanced technologies to "get in the door"
- Right place, right time contract wins
- Targeting varied vertical market applications
- Effective program management
- Enhancing the product portfolio to include multiple switching options, and additional necessary componentry and electronics
- State-of-art design and engineering services
- Top-drawer support services

The one-two punch delivered by economic slowdown and continuing price-based competition in several key vertical sectors wreaked havoc on the revenue front for many vendors of keyboards and keypads shipping to the North American market:

- Over one-third of vendors shipping to this market reported 2002 revenues from shipments for consumption to be less than those reported in 1999.

- Close to 35% of the top 100 significant vendors reported 2002 revenues to be flat or just slightly above 1999 levels (up to 5.5% over 1999 levels).

- Just over 20% of vendors realized revenues from shipments for North American market consumption in 2002 that were 15% higher or greater over 1999 revenues. Specific vendors in this grouping include AID, Cherry, Chicony, Douglas, Eastprint, GM Nameplate, Memtron, Molex, Monopanel, and NMB.

The trend toward consolidation has let up to some degree lately as serious economic slowing has put a halt to many plans of growth through acquisition and (expensive) new market penetration.

About VDC

Founded in 1971, VDC is a technology market research and consulting firm that specializes in industrial and commercial electronics, computing, communications, software and power systems markets.

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To view the entire press release go to:
http://www.vdc-corp.com/components/press/03/pr03-52.html

Report Availability:
http://www.vdc-corp.com/components/reports/02/br02-41.html

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For further information about "The North American Market for Keyboards & Keypads, Ninth Edition" or any other VDC service contact:

John A. Gordon, Program Manager, jgordon@vdc-corp.com

Marc Regberg, Vice President, msr@vdc-corp.com

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