Re: World Economy vs US RP market

From: Drew Brown (
Date: Tue Jan 19 1999 - 14:55:19 EET


Sorry but I have to disagree with you. The large service bureaus
(especially if
they are inefficient) are the ones that will be in trouble. The price
in the market will cause them to slowly bleed to death primarily when
become a bit slow (which will always happen some time or another).
can be a case for this.

It is the small companies who are nimble enough to adjust with the
market prices
that will prosper. They are more able to handle the slow times and
superior service over the long haul.

Drew Brown
Conceptual Reality L.L.C.

Joe Allison wrote:

> I agree with many that the US economy is not immune to the world
> going on right now. I still find it unbelievable that we have not
> experienced a major down turn here yet. I think we are just waiting
for a
> couple of international banks to fail. But I believe the difficulties
> some of the RP bureaus in the US is completely disconnected.
> First, Plynetics is an isolated incident that has nothing to do with
> market place. They got caught up in the venture capital game and got
> burned. I won't elaborate on this any further.
> As for the so called down turn in the market place, this is a simple
> in business. I have heard several business consultants/experts
predict this
> over the last several years. In a mature market for other types of
> manufacturing, gross margins are somewhere in the area of 45%. In a
> up industry, these margins can be much higher due to the lack of
> competition. For the past several years, for our industry, these have

> probably been as high as 55-75%.
> What we are seeing in the RP market is the equivalent of a painful
> adolescence. Gross margins are below the 55% mark with more room to
> This will drive some of the smaller and less efficient service
providers out
> of the business, but you will see growth in the overall industry.
> of course, the entire world economy collapses.
> OK. I better go get some work done now.
> Joe Allison
> Solid Concepts Inc.
> 28231 Avenue Crocker #10
> Valencia, CA 91355
> Tel: (805) 257-9300
> Fax: (805) 257-9311
> Email:
> For more information about the rp-ml, see

For more information about the rp-ml, see

This archive was generated by hypermail 2.1.2 : Tue Jun 05 2001 - 22:50:48 EEST