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The Manufacturing-Plus Strategy

RICHMOND, B.C. — S.U. Moon loved manufacturing so much that a decade ago he set out on his own to start a contract manufacturing business.

Ten years, 40 employees, and millions in annual revenue later, Moon's Foreseeson contract manufacturing company flourishes near Vancouver.

But he's not so enamored with electronics manufacturing that he doesn't grasp the competitive realities around him — notably that the global vortex for contract manufacturing is a plane ride west of him.

“My heart really liked manufacturing,” Moon said. “When I started this business, [I realized] we cannot compete only on manufacturing capability.”

To that end, Moon and his colleagues have developed services and products to complement their manufacturing core strength. These include lighting solutions and a unique copy-protected USB storage product.

Moon talked to us about his business in this video and how he competes in a dog-eat-dog environment in this video.

This blog was originally posted to the Drive For Innovation site.

6 comments on “The Manufacturing-Plus Strategy

  1. Hailey Lynne McKeefry
    September 29, 2013

    This is a great example, thanks! I'd be interested in hearing if anyone knows of any other contract manufacturers have extended their model. Anyone have a good story?

  2. Taimoor Zubar
    September 30, 2013

    @Hailey: What do you think about the future of contract manufacturers? Do you think they're on the rise and more and more companies are wanting to become contract manufacturers? Or is the trend the other way round?

  3. Himanshugupta
    September 30, 2013

    I think i am going to ask a very dumb question but i need to ask it. What is contract manufacturing? Does it mean that you take orders from companies without having a manufacturing units and looks for companies to who can provide parts for your need?

  4. Hailey Lynne McKeefry
    September 30, 2013

    @TaimoorZ, i think the future of CM is bright. I like the model because it supports innovation and allows smaller organizations to implement designs even if they don't have a manufacturing facility. At the same time, many organiations prefer an in-house approach. There has also been some consolidation in the market which can slow growth some.

    Market research bears out solid growth. TechNavio's analysts forecast the Global Electronics Contract Manufacturing market to grow at a CAGR of 5.74 percent over the period 2012-2016.

  5. Hailey Lynne McKeefry
    September 30, 2013

    Not dumb at all.  CMs provide the manufacturing of a design as a service. Here's one story from a very large CM Flextronics that makes it very clear (plus it's a fun video): http://www.youtube.com/watch?v=A9dPCr6h4cI.

  6. SP
    October 1, 2013

    Only 40 employees..definitely the revenue would be huge…

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