Electronic Manufacturing Services for the Middle Market
The EMS middle market is comprised of customers with low to medium volume EMS requirements. Typically, but not always, their requirements involve a number of products with widely different volumes and quickly changing demand.
AMI serves this market with its proven and long established end-to-end service portfolio, which extends from materials sourcing to PCB assembly to box build to final packaging to finished goods warehousing to distribution and end-customer order fulfillment.
Thus, AMI’s complete range of services mirrors the offerings of the EMS industry’s global giants, who, contrary to the needs of the EMS middle market, specialize primarily in high volume, low mix EMS requirements.
And it compares favorably to the far more limited services offered by the bulk of its other competitors -- about 2,000 mostly mom and pop operations with under fifty employees – whose services, contrary to the needs of the EMS middle market, are almost always limited to PCB assembly.
AMI is customized for the EMS Middle Market.
Scaled for the Middle Market
AMI’s middle market credentials are striking. Consider the following:
AMI services customers of all sizes with its sales per customer ranging between a few thousand and several million dollars.
AMI annually builds over 500,000 PCB subassemblies and 300,000 top-level systems. But since these assemblies encompass well over 300 unique products, its shipments per product, also annualized, average about 1,000 units and range between one unit and 50,000 units.
AMI builds over 6,000 production jobs annually, or about 25 unique jobs per day. Job sizes range from one to 5,000 units and average about 170 units per job.
From its AMI owned finished goods inventories, AMI annually fulfills over 16,000 orders from its customers’ end customers, or about 65 orders daily.
AMI sources and procures about 7,500 materials SKUs from nearly 900 suppliers. About $4 million of its $16 million annual materials spend is for stand alone materials services, including full BOM procurement and kitting.
AMI is the right size for the EMS Middle Market.
Costing and Pricing Advantages
AMI builds from its middle market credentials to consistently meet the demand of its customers to make more money. Consider the following:
100 Per Cent Employee Owned: Innumerable studies prove that ESOP companies are about five per cent more efficient than those with traditional ownership structures. Thus, aside from the other benefits of employee ownership, AMI’s cost of personnel is advantaged accordingly.
Structural Cost Advantages: AMI is located in Maine, where, according to the U.S. Department of Labor, the hourly median wage for AMI’s industry is the lowest in the nation. AMI’s average hourly wage is $10.08 and its facilities costs, excluding electricity, are $4.05 per square foot.
Margins and Markups: These and other advantages enable AMI to solve the apparent contradiction between the business requirement for sustainable profits and the customer demand for lower prices. Although AMI’s margins and markups are about the same as its competitors, these escalators are applied to a meaningfully lower cost base, thereby translating into prices that are almost always lower than its competition.
