8.0. EDSR 03-10-2003 - Laserfiche WebLink

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TechTrends e-Newsletter I February 2003 Page 2 of 6 respondents Customers buy overseas/Offshore/Lose business to them 60% 1111Pricing/Cheaper/More competitive/Cheaper labor, manufacturing 44% costs Drives our prices down/Lowers profit/We can't raise our prices 12% Takes away U.S. jobs/Sends work over there 5% Hurts our economy/Makes our future uncertain 4% Our customers move their plants there so we lose business 1% Other negative comments 3% If you don't make any changes in response to Chinese Avg. competition, what will be the impact of that competition on your percentage sales over the next several years? loss Percent loss in sales this year, 2002 (56 total respondents) -20.4% Percent loss in sales next year, 2003 (50 total respondents) -19.5% Loss in sales over the next three years, through 2004 (36 total -34.2% respondents) Loss in sales over the next five years, through 2006 (20 total -35.0% respondents) Note: Includes only those respondents who gave a percentage; does not include respondents not answering or ones who gave "don't know" answers. • Please indicate your level of agreement with each of Strongly Somewhat/ the following statements, using a five-point scale. agree Strongly Overall, firms operating in China 150 Disagree respondents 150 respondents Can produce with cheaper labor. 88% 2% Can produce at less cost. 86% 1% Do not pay supplemental costs, such as health 66% 12% insurance and retirement contributions. Do not deal with social restraints. 59% 10% Do not have to worry about legislative restraints. 57% 11% Receive more favorable financial terms. 34% 14% Receive more favorable financial terms. 24% 50% Can produce with quicker turnaround. 9% 62% Can produce a better quality product. 1% 72% Are more highly tooled, i.e., they have better 1% 70% technology, better use of machine tools and better • equipment. III Notes http://www.minnesotatechnology.org/publications/techtrends/2003/February/printVersion.asp 3/5/2003