The supplier evaluation and selection process for contract manufacturers is substantial and begins with identifying potential candidates. Evaluating electronics contract manufacturers for "1st-cut" consideration is difficult even for well-experienced OEM's. The industry is complex and continually changing:

• There are 50 electronics contract manufacturers worldwide with revenues over $200
  million.

• New companies enter the industry each year while established companies go into
   bankruptcy, merge or are acquired.

• As our numerous factory audits show, operating performance such a quality and
   delivery varies considerably among sites, even among sites of the same contract
   manufacturer.

• Value-added services such as supply chain management, product design, DFX
   engineering, distribution and repair continue to evolve and are also shown to vary
   considerably in our supplier evaluation work.

• Outsourcing to China  has grown rapidly in recent years, but other low cost locations
   in Asia, Latin America and Eastern Europe continue to build on market proximity and
   specialization advantages.

CMC’s information network is extensive and continually growing. We have excellent contacts with many large, mid-size and smaller contract manufacturers and component parts suppliers worldwide. Much first-hand knowledge of their capabilities is gained from our on-going supplier evaluation and supplier selection work. In addition, we periodically conference with multi-national company contacts who have successful outsource programs to confidentially discuss insight on evaluating contract manufacturers relative to current engagement.

To stay current on latest industry and contract manufacturer developments, CMC uses a variety of information sources including directories, industry publications, regional newsletters and country risk assessment resources.

CMC's growing reputation and credibility among contract manufacturers and 2nd-tier suppliers (i.e., high precision metals, plastics, cables, electro-mech parts) is an important advantage that we bring to every client relationship.