Investment in multiple disciples provides resilience and versatility
When it comes to an overarching business strategy, EMS providers have to make one critical decision: do we diversify or specialize? From the very beginning, Niche Electronics has chosen to diversify – to serve customers in different industries making a wide range of products.
Over the years, that has required a significant investment in equipment, training, and outreach. But that decision has given Niche key advantages: a broad set of skills, a capable workforce, an ability to pivot to capture opportunities or sidestep threats.
Even more important, diversification has provided our customers with significant benefits:
Cross-industry expertise and technology Niche often adopts techniques, materials, and process innovations from one sector for use in another. For example, our years working on aerospace products enables us to apply rigorous traceability and quality discipline to industrial or communications projects. Across the board, our customers benefit from innovations and practices that may not have been developed specifically for their sector.
Capacity and flexibility Diversification means Niche doesn’t experience the “boom or bust” cycle that can happen to EMS providers tethered to single industry’s demand cycle. This approach, along with our multiple redundant locations, enables Niche to provide reliable lead times and more flexibility to accommodate customer needs.
Economies of scale on shared infrastructure Niche’s broad and varied customer base has enabled us to invest in equipment, testing capability, and certifications that wind up benefiting everyone. In turn, these resources enable us to find solutions, innovate, and broaden our skills.
Resilience and price protection Niche’s diversification also enables our team – and our customers – to weather challenges that can undermine a highly focused manufacturer. For example, if an EMS company does 80% of their business in a sector that experiences a recession, that company still has to pay for fixed costs associated with its lines and staff. That can drive up costs – and uncertainty – for remaining customers. Niche’s approach enables us to remain stable, even if a downturn affects any one sector disproportionately.
Ultimately, Niche’s strategic decision to diversify – made nearly 30 years ago – became an engine for growth, consistency, quality, and customer satisfaction.
