Reading Micro-Mech quarterly report have always been a pleasure because not many manufacturers put so much focus on providing that level of information to their shareholders or potential investors.
Quarterly Report here.
Micro-Mech have been having difficulties these past 2 years due to a slow down in the semi-conductor business.
But what I like about them are their focus on what is important and prioritizing long term cost sustainability.
Particularly, they are focus on replacing man power with automation. This is an area where I think Singapore can develop to be as a manufacturing hub to improve productivity and make use of better train citizens.
We weren’t sure how well the automation is working out but it seems to be bearing fruit.
- Cost of sales was down 4.4% versus revenue down of 1.5%
- Administrative expenses down 2.9%
Manpower getting expensive
Against this backdrop of slow industry growth, …