Telecommunications Equipment Manufacturing
Competitive Landscape
The industry depends on purchases from businesses, telephone companies, cable companies, data communications providers, and TV and radio broadcasters. Profitability for individual companies is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee averages more than $365,000.
Opportunities
VoIP Equipment - While the traditional telephone system dedicates a single open line to each phone call, the packet-switching technology used by the Internet can send small pieces...
Business Challenges
Revenues Tied to Cyclical Business, Consumer Demand - Although manufacturers sell mainly to telecom service providers, demand for services depends on the economic situation of businesses and consumers. Small changes in demand largely...